Document:

Exhibit 10.3

 

SKYWARD SPECIALTY INSURANCE GROUP, INC.

LONG-TERM INCENTIVE PLAN

1.                 
Purpose

 

The purpose of this Plan is to promote the interests
of the Company and its participating Affiliates and Shareholders by enabling the Company and its participating Affiliates to attract,
motivate and retain Participants by offering them incentive awards that recognize the creation of value for the Shareholders and promote
the Company's long-term growth and success.

 

2.                 
Available Awards

 

Long-term incentive award grants under the Plan
shall be one of five types: (1) Restricted Shares; (2) Restricted Stock Units; (3) Performance Shares; (4) Performance Units; or (5) Long-Term
Performance Cash (collectively, “Awards”).

 

3.                 
Definitions

 

As used in the Plan, the following terms shall have the meanings set
forth below:

 

3.1    “Affiliate” shall mean
any controlled subsidiary of the Company and any controlled business venture designated by the Committee in which the Company has a
significant interest at the relevant time, as determined in the discretion of the Committee. An Affiliate is a “participating
Affiliate” if it is designated by the Committee as an Affiliate whose employees may be Participants. A list of participating
Affiliates is set forth in Exhibit A, which may be amended from time to time by the Committee without the need for a formal Plan
amendment.

 

3.2    “Award” shall have the meaning
set forth in Paragraph 2.

 

3.3    “Award Agreement” shall have the
meaning set forth in Paragraph 4.5(a).

 

3.4    “Award Period”
shall mean the period of time set out in the Award Agreement for the Award to become fully vested (in the case of Restricted Shares)
or considered for vesting and settlement (in the case of other Awards).

 

3.5    “Beneficiary” shall mean
the beneficiary designated by a Participant, in a manner determined by the Committee, to exercise rights or receive payments of the
Participant under an Award in the event of the Participant's death. In the absence of an effective designation by a Participant, the
Beneficiary shall be the Participant's estate.

 

3.6    “Board” shall mean the Board
of Directors of the Company, as the same may be constituted from time to time.

 

3.7    “Book Value Per Share” shall
mean the stated shareholders’ equity as reported on the Company’s most recent quarterly financial statements, divided by
the issued and outstanding Shares, on an as-converted basis, as of that date and as certified by the Committee.

 

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3.8    “Business
Unit” shall mean a particular program, division or sub-set of such, of the Company as may be designated from time to time by
the Chief Executive Officer, or, in the case of a Business Unit affecting the Chief Executive Officer, the Board. Designation of Business
Units and membership in such Business Units by Participants is, in each case, at the sole discretion of the Chief Executive Officer,
or in the case of the Chief Executive Officer, the Board..

 

3.9    “Cause” shall mean a
termination of the Participant's service because of: (1) any act or omission that constitutes a material breach by the Participant
of any of his or her obligations under the Plan or an Award Agreement; (2) the Participant's conviction of, or plea of nolo
contendere to, (A) any felony or (B) another crime involving dishonesty or moral turpitude or which could reflect negatively upon
the Company or any of its Affiliates or otherwise impair or impede their operations; (3) the Participant's engaging in any
misconduct, negligence, act of dishonesty, violence or threat of violence (including any violation of federal securities laws) that
is injurious to the Company or any of its Affiliates; (4) the Participant's material breach of a written policy of the Company or
the rules of any governmental or regulatory body applicable to the Company; (5) the Participant's refusal to follow the directions
of the Board; or (6) any other willful misconduct by the Participant that is materially injurious to the financial condition or
business reputation of the Company or any of its Affiliates. Notwithstanding anything to the contrary, Cause shall be determined in
the sole discretion of the Chief Executive Officer and such Chief Executive Officer shall have the sole discretion to use
after-acquired evidence to retroactively re-characterize the prior termination as a termination for Cause if such after-acquired
evidence supports such an action; provided that if the Participant in question is the Chief Executive Officer, then such
determination shall be made in the sole discretion of the Board, which may also use after-acquired evidence in making such
determination.

 

3.10    “Change in Control”
shall mean, after the effective date of the Plan, the occurrence of any one or more of the events described below, except that in
no event shall an initial public offering constitute a Change in Control:

 

(a)             Any Person, other than the Company or the Westaim Corporation or any of their affiliates, becomes the owner or beneficial owner, directly
or indirectly, of securities of the Company representing more than fifty percent (50%) of the total fair market value or total voting
power of the Company’s then outstanding securities;

 

(b)           
During any period of twelve (12) consecutive months, individuals who at the beginning of such period constitute the Board cease for any
reason to constitute at least a majority thereof, unless the election by the Board or the nomination for election by the Shareholders
was approved by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors at the beginning of
the twelve (12)-month period or whose election or nomination for election was previously so approved;

 

(c)             The Shareholders approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation where
the shareholders prior to the transaction retain at least fifty percent (50%) of the voting power of the new entity; provided, however,
that a merger or consolidation effected to implement a Reorganization in which no Person acquires more than fifty percent (50%) of the
combined voting power of the Company’s then outstanding securities shall not constitute a Change in Control of the Company; or

 

(d)             The
Shareholders approve an agreement for the sale or disposition by the Company of all or substantially all of the value of the Company's
assets over a twelve (12)-month period or less, other than such a sale or disposition to an entity that is controlled by the Shareholders.

 

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3.11    “Chief
Executive Officer” or “CEO” shall mean the chief executive officer of the Company, except that such term
shall mean the Board if no such chief executive officer is currently in office.

 

3.12    “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and any applicable Treasury regulations promulgated thereunder.

 

3.13    “Committee”
shall mean the Compensation Committee appointed by the Board to administer the Plan, or, in the absence of a Compensation Committee,
it shall mean the Board.

 

3.14    “Company”
shall mean Skyward Specialty Insurance Group, Inc. and any successor thereof.

 

3.15    “Constructive
Termination” for the purposes of this Long-Term Incentive Plan only, shall mean the occurrence of any of the following actions
or omissions by the Company or any Affiliate with respect to a Participant without the prior written consent of such Participant:

 

(a)             a material diminution in the Participant’s authority, duties, or responsibilities;

 

(b)             a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Participant is required to report, including
a requirement that the CEO report to an Employee instead of reporting directly to the Board of Directors;

 

(c)             a material reduction in the Participant’s base compensation;

 

(d)             a material reduction in the amount of incentive compensation the Participant is eligible to receive under the Plan, provided that the
dollar amount of the reduction would constitute a material reduction in the Participant’s base compensation if deducted therefrom
and provided further that a mere reduction in the Book Value per Share shall not constitute a material reduction in incentive compensation;
or

 

(e)              a change in the Participant’s principal place of employment, at the direction of the Company, to a location that is more than 50
miles from the prior principal work location; in each case provided that the Participant has given the Company written notice of the particular
circumstances that constitute the grounds on which the purported Constructive Termination is based and a period of thirty (30) days after
receiving such notice to cure such grounds; and provided further that the Company or Affiliate, as the case may be, has failed to cure
such grounds within such thirty (30)-day period, and the Participant has Separated from Service immediately following such thirty (30)-day
period.

 

3.16    “Director”
shall mean a member of the Company’s or its Affiliates’ Board of Directors.

 

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3.17    “Disability”
shall mean inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
as determined by the Company’s long-term disability insurance carrier.

 

3.18    “Dividend Equivalent
Right” shall mean a credit, made at the sole discretion of the Committee, to the account of a Participant in an amount equal
to the value of dividends paid on one Share for each Share represented by an Award held by such Participant.

 

3.19    “Double Trigger
Event” shall mean the occurrence of one of the following within twenty-four (24) months after a Change in Control: (1) Separation
from Service of a Participant by the Company without Cause; or (2) a Constructive Termination of a Participant’s employment.

 

3.20    “Effective Date” shall mean November
15, 2020.

 

3.21    “Employee”
shall mean any person, including an officer, who is a common law employee of and receives remuneration for personal services to the
Company or any participating Affiliate. A person shall not be considered an “Employee” unless the person is included on the
official human resources database as an employee.

 

3.22    “Long-Term Performance
Cash” shall mean a cash amount, receipt of which is subject to certain restrictions, including a requirement of continuous
service for a period of time, which is adjustable, up or down, based on an overall assessment of Company performance and a relative assessment
of performance of the Participant’s line of business with respect to all other Company lines of business.

 

3.23    “Participant”
shall mean an individual who is eligible to receive an Award in accordance with Section 6.

 

3.24    “Performance
Period” shall mean the individual calendar year periods (or partial year periods for mid-term Participants) within the Award
Period.

 

3.25    “Performance
Shares” shall mean the right to receive Shares, subject to certain specified restrictions, including a requirement of continuous
service for a period of time, which is adjustable, up or down, based on attainment of established performance measures of the Company.

 

3.26    “Performance
Units” shall mean a notional unit representing the right to a specific dollar amount per unit, as established in the Award
Agreement, subject to certain restrictions, including a requirement for continuous service for a period of time, which are adjustable,
up or down, based on attainment of established performance measures.

 

3.27    “Person”
shall mean an individual, partnership, joint venture, corporation, trust, limited liability company, estate or other entity or organization.

 

3.28    “Plan”
shall mean this Skyward Specialty Insurance Group, Inc. Long-Term Incentive Plan, as set forth herein and as may be amended from time
to time.

 

3.29    “Plan Year”
shall mean the fiscal year of the Company, which as of the Effective Date is the calendar year.

 

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3.30    “Pro-Rata Percentage”
shall mean the percentage calculated by dividing (a) the number of days from the beginning of the Award Period to date of the Separation
from Service, by (b) the number of days in the Award Period.

 

3.31    “Reorganization”
shall mean a reorganization or recapitalization of the Company or a similar transaction with respect to the Company.

 

3.32    “Restricted Shares”
shall mean Shares which are subject to restrictions, including a requirement of continuous service for a period of time or other substantial
risk of forfeiture.

 

3.33    “Restricted
Stock Units” shall mean the right to receive Shares (or, in certain circumstances provided in this Plan or an applicable Award
Agreement, cash) which is subject to a distribution schedule and/or restrictions, including a requirement of continuous service for a
period of time or risk of forfeiture.

 

3.34    “Separates from
Service” or “Separation from Service” means a Participant’s death, retirement or other termination
of employment with the Company and its applicable Affiliates, except that the employment relationship is treated as continuing intact
while the Participant is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed
six (6) months, or if longer, so long as the Participant retains a right to reemployment with the Company or Affiliate under an applicable
statute or by contract; provided, however, that a separation from service will not have occurred if the Participant ceases to provide
services as an employee but continues to provide service as an independent contractor, unless the level of bona fide services the Participant
would perform after ceasing to be an employee would permanently decrease to no more than 20 percent (20%) of the average level of bona
fide services performed (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36)-month period
(or the full period of services if the Participant has been providing services to the Company or an Affiliate for less than 36 months),
excluding services as a non-Employee Director.

 

3.35    “Shares”
means shares of the Company's common stock and any shares of capital stock or other securities of the Company hereafter issued or
issuable upon, in respect of or in substitution or exchange for such shares.

 

3.36    “Unit”
shall mean a base phantom or notional unit representing the right to an amount in United States dollars, or Company stock, as of
a specified date as defined by the applicable Award Agreement, which base phantom or notional unit may be adjusted up or down, as in
the case of Performance Units or Restricted Share Units.

 

4.                 
Administration of the
Plan

 

4.1       Committee.
The Plan shall be administered and interpreted by the Committee in its discretion.

 

4.2       Awards. Subject
to the provisions of the Plan and directions from the Board, the Committee is authorized to and has the complete power and
discretion to administer the Plan and undertake all actions provided for it under the Plan, including the power and discretion
to:

 

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(a)              
determine the Participants to whom Awards are to be granted;

 

(b)              determine the types and combinations of Awards to be granted; the number of Units or Shares to be covered by the Award; the terms, performance
criteria, Performance Period or other conditions, vesting periods or any restrictions for an Award; the time or times when the Award shall
be granted and exercised (paid); any vesting acceleration or waiver of forfeiture or repurchase restrictions; and any other terms and
conditions of an Award, including, without limitation, provisions requiring the forfeiture of Awards and/or gains from Awards if a Participant
is terminated for Cause or if a Participant or former Participant violates any applicable affirmative or negative covenants regarding
confidentiality, non-solicitation or such other matters as are specified in an Award Agreement or other agreement or policy applicable
to the Participant;

 

(c)              
conclusively interpret the provisions of the Plan and any agreement, instrument, or other document relating to the Plan;

 

(d)              reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any agreement, instrument, or other document
relating to the Plan;

 

(e)              prescribe, amend and rescind the rules and regulations relating to the Plan or make individual decisions as questions arise, or both;

 

(f)               authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously approved by
the Committee;

 

(g)              
impose such restrictions, conditions or limitations as it determines appropriate with respect to Awards granted under the Plan;

 

(h)              
rely upon Employees, consultants, and agents of the Company for such clerical and record keeping duties as may be necessary in connection
with the administration of the Plan;

 

(i)               determine whether an individual (including an Employee on leave or other inactive status) has Separated from Service for purposes of the
Plan;

 

(j)                make decisions with respect to outstanding Awards that may become necessary upon a Double Trigger Event or an event that triggers anti-dilution
adjustments;

 

(k)              determine the date of any breach of a non-solicitation or confidentiality covenant respecting a Participant; and

 

(l)                make all other determinations and take all other actions necessary or advisable for the administration of the Plan.

 

The express grant in the Plan of any specific
power to the Committee shall not be construed as limiting any power or authority of the Committee. However, the Committee (if separate
from the Board) may not exercise any right or power reserved to the Board.

 

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4.3    Procedures. The
CEO will make nominations and recommendations to the Committee for Awards for the year, which the Committee will review and decide
upon. All determinations of the Committee shall be made by a majority of its members. All questions of interpretation and
application of the Plan or pertaining to any question of fact or Award granted hereunder shall be decided by the Committee, whose
decision shall be final, conclusive and binding upon the Company and each other affected party. No Committee member shall act as a
member of the Committee with respect to any dispute or matter specifically involving the Committee member. If the Committee is
unable to act (because a majority of its members are disqualified from acting or abstain from acting) with respect to a matter, the
Board shall assume the authority and responsibility of the Committee with respect to such matter.

 

4.4       Delegation by the Committee.
The Committee may delegate to one or more individuals, pursuant to a written delegation, the day-to-day administration of the Plan
and any of the functions assigned to it in this Plan, except that any such delegation shall not include the Committee’s authority
and responsibility to grant Awards and interpret the Plan under Sections 4.2(a)-(e). Any actions taken by any delegates of the Committee
pursuant to such written delegation of authority shall be deemed to have been taken by the Committee. Such delegation may be revoked
at any time.

 

4.5    Award Agreements.

 

(a)              
Each Award granted under the Plan shall be evidenced by a written Award agreement (“Award Agreement”). Each Award Agreement
shall be subject to and incorporate, by reference or otherwise, the applicable terms and conditions of the Plan, and any other terms and
conditions, not inconsistent with the Plan, as may be imposed by the Committee, including without limitation, provisions related to the
consequences of a Participant’s Separation from Service that are not inconsistent with the terms of this Plan. A copy of such Agreement
shall be provided to the Participant, and the Committee may, but need not, require that the Participant sign (or otherwise acknowledge
receipt of) a copy of the Agreement or a copy of a notice of grant.

 

(b)              Each Participant may be required, as a condition to receiving an Award under this Plan, to enter into an agreement with the Company containing
such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time to time. The provisions
of any such agreement may also be included in, or incorporated by reference in, the written Award Agreement.

 

4.6    Indemnification. No
Employee, Board member, or member of the Committee shall be liable for any action taken or omitted to be taken by such member, by any
other Employee, Board member, or Committee member in connection with the performance of duties under the Plan, except for such person's
own willful misconduct or as expressly provided by applicable law. Employees, Board members, and members of the Committee shall be indemnified
in connection with their administration of the Plan to the fullest extent provided by applicable law and by the articles and bylaws of
the Company.

 

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5.                 
Shares and Units Subject to Plan

 

5.1    Limitations. The
Committee may, but is not required to, establish a maximum number of Units and/or Shares with respect to which Awards may be granted
under the Plan. To the extent the Committee does establish one or more maximum limits, then, subject to Section 5.2, the number of Units
with respect to which Awards are available for issuance under the Plan shall be reduced by the full number of Units covered by Awards
previously granted under the Plan, in each case as may be adjusted from time to time in accordance with Section 13.

 

5.2    Changes. To the
extent that any Award for Restricted Shares or Performance Shares under the Plan shall be forfeited or cancelled, in whole or in part,
or used to pay taxes as permitted by Section 16.8, then the number of shares covered by the Award may again be awarded pursuant to the
provisions of the Plan without again counting against any limitation that the Committee may have specified pursuant to Section 5.1.

 

6.                 
Eligibility

 

An individual shall be eligible to participate in the Plan
and be considered for Awards hereunder if the individual is a non-Employee Director or is an Employee who the Committee deems, in its
discretion, a senior leader, a key manager or other key individual. In making any determination as to persons to whom Awards shall be
granted, the type of Award, and/or the number of Shares or Units or the amount of cash to be covered by the Award, the Committee shall
consider the person’s position and responsibilities; his or her importance to the Company and its Affiliates; the duties of such
person; his or her past, present and potential contributions to the growth and success of the Company and its Affiliates; and such other
factors as the Committee shall deem relevant in connection with accomplishing the purposes of the Plan.

 

At the discretion of the CEO and with the Committee’s
approval, individuals who the Committee deems eligible mid-year (whether by mid-year hire, appointment, promotion or otherwise resulting
in eligibility under the Plan), may participate in the current year’s Awards if the hiring or promotion occurs prior to the end
of the third quarter. Any mid-year recipient’s Award can be made without proration and will, by its terms, have a vesting requirement
of less than the full vesting requirement of the year’s Awards.

 

A Participant selected to receive an Award shall
have a reasonable period of time within which to accept or reject the offered Award. Failure to accept within the period so fixed by the
Committee may be treated as a rejection.

 

7.                 
Restricted Shares

 

7.1    Grants. The Committee may grant
Awards of Restricted Shares for no cash consideration, for such minimum consideration as may be required by applicable law, or for
such other consideration as may be specified by the grant.

 

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7.2    Terms and Conditions.
The Committee, in its sole discretion, may specify any particular rights which the person to whom an Award of Restricted Shares is
made shall have in the Restricted Shares during the restriction period and the restrictions applicable to the particular Award, the vesting
schedule (which may be based on service, performance or other factors) and rights to acceleration of vesting (including, without limitation,
whether vesting, forfeiture or other terms or conditions in addition to those stated herein will apply to the Award upon Separation from
Service). The Committee shall also determine when the restrictions shall lapse or expire and the conditions, if any, under which the
Restricted Shares will be forfeited or sold back to the Company. Each Award of Restricted Shares may have different restrictions and
conditions. The Committee, in its discretion, may prospectively change the restriction period and the restrictions applicable to any
particular Award of Restricted Shares. Unless otherwise set forth in the Plan, Restricted Shares may not be disposed of by the recipient
until the restrictions specified in the Award Agreement expire.

 

7.3    Awards and Certificates.
Any Restricted Shares issued hereunder may be evidenced in such manner as the Committee, in its sole discretion, shall deem appropriate
including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate
is issued in respect of Restricted Shares awarded hereunder, such certificates shall bear an appropriate legend with respect to the restrictions
applicable to such Award. The Company may retain, at its option, the physical custody of any stock certificates representing any awards
of Restricted Shares during the restriction period or require that the Restricted Shares be placed in escrow or trust, along with a stock
power endorsed in blank, until all restrictions are removed or expire.

 

7.4    Shareholder and/or
Proxy Agreement. In connection with and as a condition to the grant of Restricted Shares, the Participant will be required to become
a party to the Company’s shareholder agreement. The shareholder agreement may contain restrictions on the transferability of the
Shares (such as a right of first refusal or a prohibition on transfer), and such Shares may be subject to tag-along rights and drag-along
rights of the Company and certain of its investors and repurchase rights of the Company. The shareholder agreement may also cross-reference,
incorporate or refer to provisions of this Plan or an Award Agreement, which provisions shall be enforceable under the shareholder agreement
as if stated therein (in addition and not in lieu of such provision’s enforceability under this Plan or the Award Agreement). In
addition, the Participant may be required to execute a voting proxy agreement with respect to such Shares in favor of the Company or
a third party, which may be effective during the period of restriction or some other period of time.

 

7.5    Clawback upon Breach of Non-Solicitation
or Confidentiality Covenants. As provided in Section 4.5, each Participant may be required to enter into an agreement with the
Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time
to time. If the Committee determines that a Participant has breached such agreement: (i) all of a Participant’s vested and
unvested Shares received, awarded, vested or granted pursuant to Restricted Share Awards shall immediately be cancelled; (ii) upon
cancellation the Participant shall have no further rights under or to such Shares; and (iii) the Participant shall, within ten (10)
days of notice of the Committee’s determination of such breach, surrender certificates evidencing any such Shares not in the
Company’s custody or control. These clawback rights are in addition to, and not in substitution of, any rights of repurchase
or other recoupment rights the Company may have.

 

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7.6    Separation from
Service. To the extent not otherwise provided in a Restricted Share Award Agreement, the following terms apply:

 

(a)              Death or Disability. In the event that a Participant Separates from Service due to death or Disability: (i) all unvested
Restricted Shares of such Participant shall be cancelled, the certificates evidencing unvested Restricted Shares not in the custody
or control of the Company shall be surrendered to the Company, and instead the Company shall settle such Awards as soon as
reasonably practicable but in any event by the 15th day of the third month following the end of the year in which the Participant
Separates from Service due to death or Disability by making a cash payment equal to the product of (A) the number of unvested
Restricted Stock Units, prorated by the number of full or partial months in the Award Period at the time of the Participant’s
Separation from Service due to death or Disability, and (B) the Book Value Per Share in effect at such time; and, assuming there is
no public market for the Shares, (ii) the Company shall repurchase, and the Participant or his/her estate shall sell, all Shares
issued in settlement of the Participant’s vested Restricted Stock Unit Awards at the Book Value Per Share in effect as of the
Participant’s Separation from Service due to death or Disability, with the closing on such repurchase to occur on a date
determined by the Committee in its discretion, not to exceed six (6) months following the Participant’s Separation from
Service due to death or Disability, or such other time as is established in the shareholder’s agreement. As a closing
condition to the Company repurchase provided in clause (ii), the Company may require from the Participant or his/her executor or
legal representative a general release of the Company, its Affiliates and their employees, officers and directors, in form and
substance reasonably satisfactory to the Committee.

 

(b)              Double-Trigger Event. In the event that a Participant experiences a Double-Trigger Event, all restrictions provided in the Participant’s
Restricted Share Award Agreements will lapse and any unvested Restricted Shares then outstanding shall then vest. Further, if there is
no public market for the Shares, a Participant may offer to sell all or any portion of his/her vested Restricted Shares by submitting,
at least one year in advance of sale date, an irrevocable written offer to the CEO (or in the case of the CEO, the Committee) to sell
a specified number of vested Shares. If accepted, such Shares will be purchased by the Company at the Book Value Per Share in effect as
of the date that is twelve (12) months following receipt of the request, with the closing on such repurchase to occur on a date determined
by the Committee in its discretion, not to exceed fourteen (14) months following receipt of the request.

 

(c)               Sale or Closure of a Business Unit. In the event that the Company divest of or winds-down substantially all of the operations of
Participant’s Business Unit (by actions of Persons other than Participant) during the Award Period prior to the settlement of
the Award, (i) if the Participant Separates from Service with the Company but is employed by the purchaser of the Business Unit or
its assets and the purchaser has a comparable incentive plan in which Participant will participate, all unvested Restricted Shares
shall be cancelled, the certificates evidencing the unvested Restricted Shares not in the custody or control of the Company shall be
surrendered to the Company, and the Participant shall have no further rights under or to the unvested Restricted Shares; or (ii) if
the Participant Separates from Service due to the sale or closure or the Participant continues employment with the Purchaser and no
comparable incentive plan is offered to the employee, then (y) a portion of the Restricted Shares shall vest, such portion
calculated by multiplying the Awarded Restricted Shares by the Pro-Rata Percentage; and (z) all other unvested Restricted Shares of
such Participant shall be cancelled, the certificates evidencing unvested Restricted Shares not in the custody or control of the
Company shall be surrendered to the Company, and upon cancellation the Participant shall have no further rights under or to unvested
Restricted Shares. If there is no public market for the Shares, a Participant may offer to sell all or any portion of his/her
currently vesting, or previously vested, Restricted Shares by submitting, at least one year in advance of sale date, an irrevocable
written offer to the CEO (or in the case of the CEO, the Committee) to sell a specified number of vested Shares. If accepted, such
Shares will be purchased by the Company at the Book Value Per Share in effect as of the date that is twelve (12) months following
receipt of the request, with the closing on such repurchase to occur on a date determined by the Committee in its discretion, not to
exceed fourteen (14) months following receipt of the request.

 

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(d)       All
Other Separations from Service. In the event that a Participant Separates from Service due to any reason other than those specified
in the foregoing subparagraphs of this Section 7.6: (i) all unvested Restricted Shares of such Participant shall be cancelled, the certificates
evidencing unvested Restricted Shares not in the custody or control of the Company shall be surrendered to the Company, and upon cancellation
the Participant shall have no further rights under or to unvested Restricted Shares; and (ii) if there is no public market for the Shares,
a Participant may offer to sell all or any portion of his/her vested Restricted Shares by submitting, at least one year in advance of
sale date, an irrevocable written offer to the CEO (or in the case of the CEO, the Committee) to sell a specified number of vested Shares.
If accepted, such Shares will be purchased by the Company at the Book Value Per Share in effect as of the date that is twelve (12) months
following receipt of the request, with the closing on such repurchase to occur on a date determined by the Committee in its discretion,
not to exceed fourteen (14) months following receipt of the request.

 

8.                 
Restricted Stock Units

 

8.1    Grants. The Committee
may grant Awards of Restricted Stock Units for no cash consideration, for such minimum consideration as may be required by applicable
law, or for such other consideration as may be specified by the grant.

 

8.2    Terms and Conditions.
The Committee, in its sole discretion, may specify the terms and conditions of Restricted Stock Units at the time of the grant and may
include provisions applicable to the particular Award, the vesting schedule (which may be based on service, performance or other factors)
and rights to acceleration of vesting (including, without limitation, whether unvested Restricted Stock Units are forfeited or vested
upon Separation from Service). The Committee shall also determine when the restrictions shall lapse or expire and the conditions, if
any, under which Restricted Stock Units will be forfeited or Shares issued in settlement of Restricted Stock Units sold back to the Company.
Each Award of Restricted Stock Units may have different restrictions and conditions. The Committee, in its discretion, may prospectively
change the restriction period and the restrictions applicable to any particular Award of Restricted Stock Units. All Restricted Stock
Units are personal and non-assignable.

 

8.3    Settlement.
Restricted Stock Unit Awards will be settled in Shares or, under circumstances provided for in the Award Agreement or this Article
8, cash, or any combination thereof as the Committee may determine, and the consideration for the issuance of the Restricted Stock Units
may be the achievement of the vesting schedule. Settlement shall occur within a reasonable period of time after the Committee has so certified,
but in any event by the 15th day of the third month following the end of the year in which the Restricted Stock Unit Award is no longer
subject to a substantial risk of forfeiture.

 

    11

     

    

 

8.4    Dividend Equivalent Rights. The
Committee may grant a Dividend Equivalent Right as a component of a Restricted Stock Unit Award, and, in general, each such holder
of a Dividend Equivalent Right that is outstanding on a dividend record date for the Company's common stock shall be credited with
an amount equal to the cash or stock dividends or other distributions that would have been received had the Shares issuable under
the Restricted Stock Unit Award been issued and outstanding on the dividend record date. The terms and conditions of the Dividend
Equivalent Right shall be specified by the grant. Dividend equivalents credited to the holder of a Dividend Equivalent Right may
accrue currently or may be deemed to be reinvested in additional Restricted Stock Units (which may thereafter accrue additional
Dividend Equivalent Rights). Any such reinvestment shall be at the Book Value Per Share in effect at the time thereof. Dividend
Equivalent Rights may be settled in cash or Shares, or a combination thereof. Dividend Equivalent Rights that are a component of a
Restricted Stock Unit Award shall be settled concurrently with the Restricted Stock Units to which they relate and shall expire or
be forfeited or annulled under the same conditions as such Restricted Stock Unit Award.

 

8.5    Shareholder and/or Proxy Agreement.
In connection with and as a condition to the vesting and settlement of a Restricted Stock Unit Award, the Participant will be
required to become a party to the Company’s shareholder agreement. The shareholder agreement may contain restrictions on the
transferability of the Shares (such as a right of first refusal or a prohibition on transfer), and such Shares may be subject to
tag-along rights and drag-along rights of the Company and certain of its investors and repurchase rights of the Company. The
shareholder agreement may also cross-reference, incorporate or refer to provisions of this Plan or an Award Agreement, which
provisions shall be enforceable under the shareholder agreement as if stated therein (in addition and not in lieu of such
provision’s enforceability under this Plan or the Award Agreement). In addition, the Participant may be required to execute a
voting proxy agreement with respect to such Shares in favor of the Company or a third party, which may be effective during the
period of restriction or some other period of time.

 

8.6    Forfeiture and Clawback upon Breach of Non-Solicitation
or Confidentiality Covenants. As
provided in Section 4.5, each Participant may be required to enter into an agreement with the Company containing such confidentiality,
non-solicitation, and/or other provisions as the Committee may adopt and approve from time to time. If the Committee determines that
a Participant has breached such agreement: (i) all unvested or unsettled Restricted Stock Unit Awards respecting the Participant will
be forfeited; (ii) all Dividend Equivalent Rights and credits granted under Dividend Equivalent Rights shall be forfeited; (iii) all
Shares vested or issued in settlement of Restricted Stock Unit Awards shall immediately be cancelled, and upon cancellation the Participant
shall have no further rights under or to such Shares; and (iv) the Participant shall, within ten (10) days of notice of the Committee’s
determination of such breach, surrender any certificates evidencing such Shares not in the Company’s custody or control and repay
all cash payable or paid in settlement of Restricted Stock Unit Awards. These forfeiture and clawback rights are in addition to, and
not in substitution of, any rights of repurchase or other recoupment rights the Company may have.

 

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8.7    Separation
from Service. To the extent not otherwise provided in a Restricted Stock Unit Award Agreement, the following terms apply:

 

(a)              Death or Disability. In the event that a Participant Separates from Service due to death or Disability: (i) all unvested or unsettled
Restricted Stock Units of such Participant, all Dividend Equivalent Rights and all credits granted under Dividend Equivalent Rights shall
be forfeited, and instead the Company shall settle such Awards as soon as reasonably practicable but in any event by the 15th day of the
third month following the end of the year in which the Participant Separates from Service due to death or Disability by making a cash
payment equal to the product of (A) the number of unvested Restricted Stock Units, prorated by the number of full or partial months in
the Award Period at the time of the Participant’s Separation from Service due to death or Disability, and (B) the Book Value Per
Share in effect at such time; plus any credits from the Dividend Equivalent Rights; and, (ii) if there is no public market for
the Shares, the Company shall repurchase, and the Participant or his/her estate shall sell, all Shares issued in settlement of the Participant’s
vested Restricted Stock Unit Awards at the Book Value Per Share in effect as of the Participant’s Separation from Service due to
death or Disability, with the closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed
six (6) months following the Participant’s Separation from Service due to death or Disability, or such other time as is established
in the shareholder’s agreement. As a condition precedent to the cash settlement provided in clause (i), and as a closing condition
to the Company repurchase provided in clause (ii), the Company may require from the Participant or his/her executor or legal representative
a general release of the Company, its Affiliates and their employees, officers and directors, in form and substance reasonably satisfactory
to the Committee.

 

(b)              Double-Trigger Event. In the event that a Participant experiences a Double-Trigger Event, all restrictions provided in the Participant’s
Restricted Stock Unit Award Agreements will lapse, performance measures will be deemed met, and his/her Restricted Stock Unit Awards will
be settled in Shares as provided in Section 8.3. Further, if there is no public market for the Shares, a Participant may offer to sell
all or any portion of his/her vested Restricted Stock Units by submitting, at least one year in advance of sale date, an irrevocable written
offer to the CEO (or in the case of the CEO, the Committee) to sell a specified number of vested Shares. If accepted, such Shares will
be purchased by the Company at the Book Value Per Share in effect as of the date that is twelve (12) months following receipt of the request,
with the closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months
following receipt of the request.

 

(c)               Sale or Closure of a Business Unit. In the event that the Company divest of or winds-down substantially all of the operations of
Participant’s Business Unit (by actions of Persons other than Participant) during the Award Period prior to the settlement of
the Award, (i) if the Participant Separates from Service with the Company but is employed by the purchaser of the Business Unit or
its assets and the purchaser has a comparable incentive plan in which employee will participate, all unvested and unsettled
Restricted Stock Units of the Participant and all associated Dividend Equivalent Rights shall be forfeited; or (ii) if the
Participant Separates from Service due to the Business Unit’s sale or closure or the Participant continues employment with the
purchaser and no comparable incentive plan is offered to the employee, then (y) a portion of the Restricted Share Units shall vest,
such portion calculated by multiplying the Awarded Restricted Share Units by the Pro-Rata Percentage, and settlement in Shares as
provided in Section 8.3; and (z) all other unvested or unsettled Restricted Stock Units of such Participant, and all associated
Dividend Equivalent Rights and all credits granted under Dividend Equivalent Rights shall be forfeited. If there is no public market
for the vested Shares, a Participant may offer to sell all or any portion of his/her currently vesting or previously vested
Restricted Shares Units by submitting, at least one year in advance of sale date, an irrevocable written offer to the CEO (or in the
case of the CEO, the Committee) to sell a specified number of vested Shares. If accepted, such Shares will be purchased by the
Company at the Book Value Per Share in effect as of the date that is twelve (12) months following receipt of the request, with the
closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months
following receipt of the request.

 

    13

     

    

 

(d)       All
Other Separations from Service. In the event that a Participant Separates from Service due to any reason other than those specified
in the foregoing subparagraphs of this Section 8.7: (i) all unvested or unsettled Restricted Stock Units of such Participant, all Dividend
Equivalent Rights and all credits granted under Dividend Equivalent Rights shall be forfeited; and (ii) if there is no public market for
the Shares, a Participant may offer to sell all or any portion of his/her vested Restricted Shares Units by submitting, at least one year
in advance of sale date, an irrevocable written offer to the CEO (or in the case of the CEO, the Committee) to sell a specified number
of vested Shares. If accepted, such Shares will be purchased by the Company at the Book Value Per Share in effect as of the date that
is twelve (12) months following receipt of the request, with the closing on such repurchase to occur on a date determined by the Committee
in its discretion, not to exceed fourteen (14) months following receipt of the request.

 

9.                 
Performance Shares

 

9.1    Grants.
The Committee may grant Performance Share Awards to any Participant for no cash consideration, for such minimum consideration as may
be required by applicable law or for such other consideration as may be specified at the time of the grant.

 

9.2    Terms and Conditions.
The terms and conditions of Performance Share Awards shall be specified at the time of the grant and may include provisions establishing
the performance period, the performance criteria to be achieved during a performance period, the criteria used to determine vesting (including
the acceleration thereof), whether Performance Share Awards are forfeited or vest upon termination of employment or service during a
performance period and the maximum or minimum settlement values. The extent to which any applicable performance objective has been achieved
shall be conclusively determined by the Committee. Each Performance Award shall have its own terms and conditions, which shall be determined
at the discretion of the Committee. Each Performance Share Award may have different terms and conditions. If the Committee determines,
in its sole discretion, that the established performance measures or objectives are no longer suitable because of a change in the Company's
business, operations, corporate structure or for other reasons that the Committee deems satisfactory, the Committee may modify the performance
measures or objectives and/or the Performance Period.

 

9.3    Settlement. Performance
Share Awards will be settled in Shares or, under circumstances provided for in the Award Agreement, cash, or any combination thereof
as the Committee may determine, and the consideration for the issuance of the Shares may be the achievement of the performance objective
established at the time of the grant of the Performance Share Award. The Committee shall determine whether any applicable performance
goals have been met and, if they have, shall so certify prior to the issuance of any Shares in settlement of Performance Share Award.
No Performance Share Award for any Performance Period shall vest until such certification is made by the Committee. Settlement shall
occur within a reasonable period of time after the Committee has certified the achievement of the performance objective, but in any event
by the 15th day of the third month following the end of the year in which the Performance Share Award is no longer subject to a substantial
risk of forfeiture.

 

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9.4    Dividend Equivalent
Rights. The Committee may grant a Dividend Equivalent Right as a component of a Performance Share Award, and, in general, each such
holder of a Dividend Equivalent Right that is outstanding on a dividend record date for the Company's common stock shall be credited
with an amount equal to the cash or stock dividends or other distributions that would have been received had the Shares covered by the
Performance Share Award been issued and outstanding on the dividend record date. The terms and conditions of the Dividend Equivalent
Right shall be specified by the grant. Dividend equivalents credited to the holder of a Dividend Equivalent Right may accrue currently
or may be deemed to be reinvested in additional Performance Shares (which may thereafter accrue additional Dividend Equivalent Rights).
Any such reinvestment shall be at the Book Value Per Share at the time thereof. Dividend Equivalent Rights may be settled in cash or
Shares, or a combination thereof. Dividend Equivalent Rights that are a component of a Performance Share Award shall be settled concurrently
with the Performance Shares to which they relate and shall expire or be forfeited or annulled under the same conditions as such Performance
Share Award.

 

9.5    Shareholder and/or Proxy Agreement.
In connection with and as a condition to the vesting and settlement of a Performance Share Award, the Participant will be required
to become a party to the Company’s shareholder agreement. The shareholder agreement may contain restrictions on the
transferability of the Shares (such as a right of first refusal or a prohibition on transfer), and such Shares may be subject to
tag-along rights and drag-along rights of the Company and certain of its investors and repurchase rights of the Company. In
addition, the Participant may be required to execute a voting proxy agreement with respect to such Shares in favor of the Company or
a third party, which may be effective during the period of restriction or some other period of time.

 

9.6    Forfeiture and
Clawback upon Breach of Non-Solicitation or Confidentiality Covenants.
As provided in Section 4.5, each Participant may be required to enter into an agreement with the Company containing such confidentiality,
non-solicitation, and/or other provisions as the Committee may adopt and approve from time to time. If the Committee determines that
a Participant has breached such agreement: (i) all unvested or unsettled Performance Share Awards respecting the Participant will be
forfeited; (ii) all Dividend Equivalent Rights and credits granted under Dividend Equivalent Rights shall be forfeited; (iii) all Shares
issued in settlement of Performance Share Awards shall immediately be cancelled, and upon cancellation the Participant shall have no
further rights under or to such Shares; and (iv) the Participant shall, within ten (10) days of notice of the Committee’s determination
of such breach, surrender any certificates evidencing such Shares not in the Company’s custody or control and repay all cash paid
in settlement of Performance Share Awards. These forfeiture and clawback rights are in addition to, and not in substitution of, any rights
of repurchase or other recoupment rights the Company may have.

 

    15

     

    

 

9.7    Separation
from Service. To the extent not otherwise provided in a Performance Share Award Agreement, the following terms apply:

 

(a)              
Death or Disability. In the event that a Participant Separates from Service due to death or Disability: (i) all unvested or unsettled
Performance Shares of such Participant, all Dividend Equivalent Rights and all credits granted under Dividend Equivalent Rights shall
be forfeited, and instead the Company shall settle such Awards by making a cash payment equal to the product of (A) the target number
of Performance Shares, prorated by the number of full or partial months in the Award Period at the time of the Participant’s Separation
from Service due to death or Disability, and (B) the Book Value Per Share in effect at such time, settled in accordance with Section
9.3, plus; any credits from the Dividend Equivalent Rights; and (ii) if there is no public market for the Shares, the Company
shall repurchase, and the Participant or his/her estate shall sell, all Shares issued to the Participant in settlement of vested Performance
Share Awards at the Book Value Per Share in effect as of the Participant’s Separation from Service due to death or Disability,
with the closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed six (6) months following
the Participant’s Separation from Service due to death or Disability, or such other time as is established in the shareholder’s
agreement. As a condition precedent to the cash settlement provided in clause (i), and as a closing condition to the Company repurchase
provided in clause (ii), the Company may require from the Participant or his/her executor or legal representative a general release of
the Company, its Affiliates and their employees, officers and directors, in form and substance reasonably satisfactory to the Committee.

 

(b)              
Double-Trigger Event. In the event that a Participant experiences a Double-Trigger Event, all unvested or unsettled Performance Shares
of such Participant, all Dividend Equivalent Rights and all credits granted under Dividend Equivalent Rights shall be forfeited, and instead
the Company shall settle such Awards by making a cash payment equal to the product of (A) the target number of Performance Shares and
(B) the greater of (i) the Book Value Per Share in effect at such time or at the time of the Participant’s Grant or (ii) the Book
Value Per Share in effect at the time of the Participant’s Separation from Service, plus; any credits from the Dividend Equivalent
Rights, settled in accordance with Section 9.3; provided that any payment may be adjusted to ensure full deductibility of such payment.
Further, if there is no public market for the Shares, a Participant may offer to sell all or any portion of his/her vested Performance
Shares Units by submitting, at least one year in advance of sale date, an irrevocable written offer to the CEO (or in the case of the
CEO, the Committee) to sell a specified number of vested Shares. If accepted, such Shares will be purchased by the Company at the Book
Value Per Share in effect as of the date that is twelve (12) months following receipt of the request, with the closing on such repurchase
to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months following receipt of the request.

 

(c)               
Sale or Closure of a Business Unit. In the event that the Company divest of or winds-down substantially all of the operations of
Participant’s Business Unit (by actions of Persons other than Participant) during the Award Period prior to the settlement of
the Award, (i) if the Participant Separates from Service with the Company but is employed by the purchaser of the Business Unit or
its assets and the purchaser has a comparable incentive plan in which employee will participate, all unvested and unsettled
Performance Shares of the Participant and all associated Dividend Equivalent Rights shall be forfeited; or (ii) if the Participant
Separates from Service due to the Business Unit’s sale or closure or the Participant continues employment with the purchaser
and no comparable incentive plan is offered to the employee, then (y) a portion of the Performance Shares shall vest, such portion
calculated by multiplying the Awarded Performance Shares by the Pro-Rata Percentage, with such Shares settled by making a cash
payment equal to the product of (A) the target number of Performance Shares vested in accordance with this section 9.7(c), and (B)
the greater of (x) the Book Value Per Share in effect at such time or at the time of the Participant’s Grant or (y) the Book
Value Per Share in effect at the time of the Participant’s Separation from Service, plus; any credits from the Dividend
Equivalent Rights, settled in accordance with Section 9.3; provided that any payment may be adjusted to ensure full deductibility of
such payment; and (z) all other unvested or unsettled Performance Shares of such Participant, and all associated Dividend Equivalent
Rights and all associated credits granted under Dividend Equivalent Rights shall be forfeited. If there is no public market for the
Shares, a Participant may offer to sell all or any portion of his/her currently vesting or previously vested Performance Shares by
submitting, at least one year in advance of sale date, an irrevocable written offer to the CEO (or in the case of the CEO, the
Committee) to sell a specified number of vested Shares. If accepted, such Shares will be purchased by the Company at the Book Value
Per Share in effect as of the date that is twelve (12) months following receipt of the request, with the closing on such repurchase
to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months following receipt of the
request.

 

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(d)       All
Other Separations from Service. In the event that a Participant Separates from Service due to any reason other than those specified
in the foregoing subparagraphs of this Section 9.7: (i) all unvested or unsettled Performance Shares, all Dividend Equivalent Rights and
all credits granted under Dividend Equivalent Rights shall be forfeited; and (ii) if there is no public market for the Shares, a Participant
may offer to sell all or any portion of his/her vested Performance Shares Units by submitting, at least one year in advance of sale date,
an irrevocable written offer to the CEO (or in the case of the CEO, the Committee) to sell a specified number of vested Shares. If accepted,
such Shares will be purchased by the Company at the Book Value Per Share in effect as of the date that is twelve (12) months following
receipt of the request, with the closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed
fourteen (14) months following receipt of the request.

 

10.                 
Performance Units

 

10.1    Grants. The Committee
may grant Performance Unit Awards in such target numbers as it determines, which target shall be stated in the applicable Award Agreement.
The terms and conditions of the Performance Unit Awards shall be specified by the Award Agreement.

 

10.2    Terms. The terms
and conditions of Performance Unit Awards shall be specified at the time of the grant and may include, at the discretion of the Committee,
provisions establishing the performance period, the performance criteria to be achieved during a performance period, the criteria used
to determine vesting (including the acceleration thereof), whether Performance Unit Awards are forfeited or vest upon termination of
employment or service during a performance period and the maximum or minimum settlement values. The extent to which any applicable performance
objective has been achieved shall be conclusively determined by the Committee. Each Performance Unit Award shall have its own terms and
conditions, which shall be determined at the discretion of the Committee. Each Performance Unit Award may have different terms and conditions.
If the Committee determines, in its sole discretion, that the established performance measures or objectives are no longer suitable because
of a change in the Company’s business, operations, corporate structure or for other reasons that the Committee deems satisfactory,
the Committee may modify the performance measures or objectives and/or the Performance Period.

 

10.3    Payment. Performance
Unit Awards will be paid in cash. Upon satisfaction of the Award vesting requirements and certification by the Committee of applicable
performance factors, the number of performance-adjusted Performance Units will be calculated as the product of the target number of Performance
Units and the performance factor certified by the Committee. Generally, and subject to the terms of the Performance Unit Award Agreement,
the cash payment to be made to the Participant shall be equal to the product of the performance-adjusted Performance Units and the value
of each Unit, which will be paid in a reasonable period of time after certification by the Committee, but in any event by the 15th
day of the third month following the end of the year in which the Performance Unit cash payment is no longer subject to a substantial
risk of forfeiture.

 

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10.4    No Rights as a Shareholder;
No Limit on Company Transactions. Units are not Shares or other equity interests in the Company or any participating Affiliate. A
Participant receiving an Award of Performance Units shall have none of the rights of a shareholder or owner of equity interests in the
Company or any participating Affiliate with respect to Units covered by an Award. The Plan and the grant of a Performance Unit Award
pursuant to the Plan shall not affect in any way the right or power of the Company or any of its Affiliates to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge or to consolidate or to dissolve, liquidate or sell or transfer
all or any part of its business or assets.

 

10.5    Forfeiture and Clawback
upon Breach of Non-Solicitation or Confidentiality Covenants. As provided in Section 4.5, each Participant may be required to enter
into an agreement with the Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt
and approve from time to time. If the Committee determines that a Participant has breached such agreement: (i) all unvested or unsettled
Performance Unit Awards respecting the Participant will be forfeited; and (ii) the Participant shall, within ten (10) days of notice of
the Committee’s determination of such breach, repay all cash paid in settlement of Performance Unit Awards within the twelve (12)
months preceding the Participant’s Separation of Service. These forfeiture and clawback rights are in addition to, and not in substitution
of, any rights of repurchase or other recoupment rights the Company may have.

 

10.6    Separation from Service.
To the extent not otherwise provided in a Performance Unit Award Agreement, the following terms apply:

 

(a)           Death or Disability. In the event that a Participant Separates from Service due to death or Disability, all unvested or unsettled
Performance Units of such Participant shall be forfeited, and instead the Company shall settle such Awards by making a cash payment equal
to the Performance Unit Award target amount, prorated by the number of full or partial months in the Award Period at the time of the Participant’s
Separation from Service due to death or Disability, paid in accordance with Section 10.3. As a condition precedent to this cash settlement,
the Company may require from the Participant or his/her executor or legal representative a general release of the Company, its Affiliates
and their employees, officers and directors, in form and substance reasonably satisfactory to the Committee.

 

(b)           Double-Trigger Event. In the event that a Participant experiences a Double-Trigger Event, all unvested or unsettled Performance
Units of such Participant shall be forfeited, and instead the Company shall settle such Awards by making a cash payment equal to the
product of (A) the target number of units granted in Performance Unit Award, and (B) the Unit value, paid in accordance with Section
10.3; provided that any payment may be adjusted to ensure full deductibility of such payment.

 

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(d)             Sale or Closure of a Business Unit. In the event that the Company divest of or winds-down substantially all of the operations of Participant’s
Business Unit (by actions of Persons other than Participant) during the Award Period prior to the Settlement of the Award, (i) if the
Participant Separates from Service with the Company but is employed by the purchaser of the Business Unit or its assets and the purchaser
has a comparable incentive plan in which employee will participate, all unvested and unsettled Performance Units of the Participant shall
be forfeited; or (ii) if the Participant Separates from Service due to the Business Unit’s sale or closure or the Participant continues
employment with the purchaser and no comparable incentive plan is offered to the employee, then (y) a portion of the Performance Units
shall vest, such portion calculated by multiplying the Performance Units by the Pro-Rata Percentage, and such vested units shall be settled
by making a cash payment equal to the product of (A) the target number of units vested in accordance with this Section 10.6(c), and (B)
the Unit value, paid in accordance with Section 10.3, provided that any payment may be adjusted to ensure full deductibility of such payment;
(z) all other unvested or unsettled Performance Units of such Participant shall be forfeited and no additional payment made.

 

(e)             All Other Separations from Service. In the event that a Participant Separates from Service due to any reason other than those specified
in the foregoing subparagraphs of this Section 10.6, all unvested or unsettled Performance Units shall be forfeited and no payment shall
be made.

 

11.                 
Long-Term Performance
Cash

 

11.1    Grants. The Committee
may grant Awards of Long-Term Performance Cash in a target amount it determines, which amount shall be set forth in the Award Agreement.
The Committee may establish a maximum aggregate total (a “pool”) of Long-Term Performance Cash Awards for the entire Company
for a particular period, which shall be apportioned among the Company’s business lines to be distributed to the Participants within
the business lines. The terms and conditions of the Long-Term Performance Cash Awards shall be specified by the Award Agreement.

 

11.2    Terms. The Committee,
in its sole discretion, may specify the restrictions applicable to the particular Award, the vesting schedule (which may be based on
service, the attainment of specified performance goals or other factors), and rights to acceleration of vesting. The Committee shall
also determine when the restrictions shall lapse or expire and the conditions, if any, under which the Long-Term Performance Cash will
be forfeited. Each Award of Long-Term Performance Cash may have different restrictions and conditions. The Committee, in its discretion,
may prospectively change the restriction period and the restrictions applicable to any particular Award of Long-Term Performance Cash.

 

11.3    Payment. Upon
satisfaction of the Award vesting requirement and certification by the Committee of applicable performance factors, the final Long-Term
Performance Cash Award will be calculated and will be paid in a reasonable period of time after certification by the Committee, but in
any event by the 15th day of the third month following the end of the year in which the Long-Term Performance Cash Award is no longer
subject to a substantial risk of forfeiture.

 

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11.4    Forfeiture and Clawback
upon Breach of Non-Solicitation or Confidentiality Covenants. As provided in Section 4.5, each Participant may be required to enter
into an agreement with the Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt
and approve from time to time. If the Committee determines that a Participant has breached such agreement, the Participant shall have
no further right to receive any Long-Term Performance Cash payments, and the Participant shall, within ten (10) days of notice of the
Committee’s determination of such breach, repay to the Company any amounts previously paid pursuant to Long-Term Performance Cash
Awards within the twelve (12) months preceding the Participant’s Separation from Service. These forfeiture and clawback rights are
in addition to, and not in substitution of, any rights of repurchase or other recoupment rights the Company may have. See notes above

 

11.5    Separation from Service.
To the extent not otherwise provided in a Long-Term Performance Cash Award Agreement, the following terms apply:

 

(a)              Death or Disability. In the event that a Participant Separates from Service due to death or Disability, all of the Participant’s
unsettled Long-Term Performance Cash Awards shall be forfeited, and instead the Company shall settle such Awards by making a cash payment
equal to the Long-Term Performance Cash Award target amount, prorated by the number of full or partial months in the Award Period at the
time of the Participant’s Separation from Service due to death or Disability, paid in accordance with Section 11.3. As a condition
precedent to this cash settlement, the Company may require from the Participant or his/her executor or legal representative a general
release of the Company, its Affiliates and their employees, officers and directors, in form and substance reasonably satisfactory to the
Committee.

 

(b)              Double-Trigger Event. In the event that a Participant experiences a Double-Trigger Event, all of the Participant’s unsettled
Long-Term Performance Cash Awards Units shall be forfeited, and instead the Company shall settle such Awards by making a cash payment
equal to the target value of the Long-Term Performance Cash Award, paid at 100% of target, paid in accordance with Section 11.3, provided
that any payment may be adjusted to ensure full deductibility of such payment.

 

(c)              
Sale or Closure of a Business Unit. In the event that the Company divest of or winds-down substantially all of the operations of
Participant’s Business Unit (by actions of Persons other than Participant) during the Award Period prior to the settlement of
the Award, (i) if the Participant Separates from Service with the Company but is employed by the purchaser of the Business Unit or
its assets and the purchaser has a comparable incentive plan in which employee will participate, all unvested and unsettled
Long-Term Performance Cash Award Units of the Participant shall be forfeited; or (ii) if the Participant Separates from Service due
to the Business Unit’s sale or closure or Participant continues employment with the purchaser and no comparable incentive plan
is offered to the employee, then: (y) a portion of the Long-Term Performance Cash Award Units shall vest, such portion calculated by
multiplying the Performance Units by the Pro-Rata Percentage, and such vested units shall be settled by making a cash payment equal
to the target value of the Long-Term Performance Cash Award vested in accordance with this Section 11.5(c), and paid in accordance
with Section 11.3, provided that any payment may be adjusted to ensure full deductibility of such payment and (z) all other unvested
and unsettled Long-Term Performance Cash Award Units shall be forefeited and no further payment made.

 

(d)               All
Other Separations from Service. In the event that a Participant Separates from Service due to any reason other than those specified
in the foregoing subparagraphs of this Section 11.5, all unsettled Long-Term Performance Cash Awards shall be forfeited and no payment
shall be made.

 

    20

     

    

  

12.             
Compliance with Securities and Other Laws

 

In no event shall the Company be required to sell
or issue Awards if the sale or issuance thereof would constitute a violation of applicable federal or state securities laws or regulations
or a violation of any other law or regulation of any governmental or regulatory agency or authority or any securities exchange applicable
to equity interests in the Company or any of its Affiliates.

 

13.             
Adjustments upon Changes in Capitalization, Reorganization, or Change in Control Event

 

In the event the Committee determines that any
distribution (whether in the form of cash, other securities, or other property), Change in Control, recapitalization, contributions to
capital, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of shares
of the Company, issuance of warrants or other rights to purchase Company shares or other equity interests, or other similar transaction
or event affects the number or value of Shares or Units such that an adjustment is determined by the Committee to be appropriate in order
to prevent dilution or enlargement of the benefits or potential benefits intended to be made available by grants of Awards under the Plan,
then the Committee shall, in such manner as it may in its sole discretion deem equitable, adjust any or all of (i) the number and type
of Shares or Units subject to outstanding Awards and the price or value of such Units or Shares; (ii) the total outstanding Units; (iii)
the number of Shares and/or Units available for issuance under the Plan; and (iv) the Book Value Per Share or the manner in which the
Book Value Per Share is determined.

 

14.             
Amendment or Termination of the Plan

 

14.1 Amendment of the Plan.
Notwithstanding anything contained in the Plan to the contrary, all provisions of the Plan may at any time or from time to time be
modified or amended by the Board; provided, however, that no Award at any time outstanding under the Plan may be modified, impaired or
canceled adversely to the holder of the Award without the consent of such holder.

 

14.2 Termination of the Plan.

 

(a)               The Board may suspend or terminate the Plan at any time, and such suspension or termination may be retroactive or prospective.

 

(b)              
The termination of the Plan shall not impair or affect any Award previously granted hereunder and the rights of the holder of the
Award shall remain in effect until the Award has been paid in its entirety or has expired or otherwise has been terminated in
accordance with the

terms of such Award.

 

    21

     

    

 

15.             
Amendments and Adjustments to Awards

 

The Committee may amend, modify or terminate any
outstanding Award with the Participant's consent at any time prior to payment or satisfaction of the Award in any manner not inconsistent
with the terms of the Plan. The Committee is authorized to make adjustments in the terms and conditions of, and the criteria included
in, Awards in recognition of unusual or non-recurring events (including, without limitation, the events described in Section 13 hereof)
affecting the Company, or the financial statements of the Company or any participating Affiliate, or of changes in applicable laws, regulations
or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent reduction or enlargement
of the benefits or potential benefits intended to be made available under the Plan. The determinations of value under this Section 15
shall be made by the Committee in its sole discretion.

 

16.             
General Provisions

 

16.1    No Limit on Other
Compensation Arrangements. Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other compensation
arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

 

16.2    No Right to Employment
or Service. Nothing in the Plan or in any Award, nor the grant of any Award, shall confer upon or be construed as giving any Participant
any right to remain in the employ or service of the Company or any Affiliate. Further, the Company and its Affiliates may at any time
dismiss a Participant from employment or service, free from any liability or any claim under the Plan, unless otherwise expressly provided
in the Plan or in any Award Agreement. No Participant, Director, Employee, or other person shall have any claim to be granted any Award,
and there is no obligation for uniform treatment of Employees, Directors, Participants or Beneficiaries.

 

16.3    Governing Law. Except
to the extent that federal law is controlling, the validity, construction and effect of the Plan and any rules and regulations relating
to the Plan shall be determined in accordance with the laws of the State of Texas, without giving effect to the conflicts of laws principles
thereof.

 

16.4    Severability. If
any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to
any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall
be construed or deemed amended to conform to applicable laws, or if it cannot be construed or deemed amended without, in the sole determination
of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person
or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

 

    22

     

    

 

16.5    Headings. Headings
are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed
in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.

 

16.6    Effective Date. The
Plan shall be effective as of the Effective Date after its approval by the Board effective as of such date.

 

16.7    Non-Transferability
of Awards. All amounts payable or Shares granted under an Award constitute remuneration for personal services, and Awards and the
right to payment under an Award shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant in any respect whatsoever, except that amounts payable under an Award may be paid to a Beneficiary in accordance with the
terms of the Plan and the Award Agreement. Any assignment, alienation, pledge, attachment, transfer, or encumbrance contrary to the foregoing
shall be void.

 

16.8    Tax Withholding. The
Company and its participating Affiliates shall have the right to withhold or require separate payment of all federal, state, local or
other taxes or payments with respect to any Award or payment made under the Plan. Such amounts shall be withheld or paid prior to the
delivery of any amount payable under an Award subject to such withholding. To the extent permitted by the Company, such a payment may
be made by a) the delivery of cash to the Company or applicable Affiliate in an amount that equals or exceeds the withholding obligation
of the Company, b) authorizing the Company to withhold from any cash payment made under an Award an amount that equals or exceeds the
withholding obligation of the Company; or c) authorizing the Company to withhold from the Shares granted under the Award the number of
Shares of common stock as are necessary to satisfy the Company’s withholding obligation, valuing such Shares at Book Value Per Share.
All determinations of withholding liability under this Section shall be made by the Company in its sole discretion and shall be binding
upon the Participant and any Beneficiary.

 

16.9    Unfunded Plan. The
Plan shall be unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The Plan shall not establish
any fiduciary relationship between the Company or any participating Affiliate and any Participant or other person. To the extent any person
holds any rights by virtue of an Award granted under the Plan, such rights shall be no greater than the rights of an unsecured general
creditor of the Company.

 

16.10   Writing
Requirement. A requirement hereunder that an agreement, notice, or other instrument be written will be considered satisfied if the
instrument is provided in electronic form that is approved by the Committee and that may be retained and reproduced in paper form.

 

16.11   Compensation
Recoupment. Notwithstanding any other provisions in this Plan, any Award that is subject to recovery under any law, government regulation,
Award Agreement, or other agreement will be subject to such deductions and clawback as may be required to be made pursuant to such law,
government regulation, Award Agreement, other agreement (or any policy adopted by the Company pursuant to any such law or government
regulation).

 

    23

     

    

 

17.       Compliance with Code
Section 409A

 

17.1    Purpose and Interpretation.
With respect to Participants subject to United States federal income tax, the Plan is intended to comply with applicable requirements
to avoid a plan failure under Code section 409A and shall be construed and applied accordingly by the Committee.

 

17.2    Compliance Amendments.
To the extent any provision of the Plan or any omission from the Plan would (absent this Section 17.2) cause amounts to be includable
in income under Code section 409A(a)(1), the Plan shall be deemed amended to the extent necessary to comply with the requirements of Code
section 409A; provided, however, that this Section 17.2 shall not apply and shall not be construed to amend any provision of the
Plan to the extent this Section 17.2 or any amendment required thereby would itself cause any amounts to be includable in income under
Code section 409A(a)(1).

 

17.3    Timing of Distributions.
If an Award is intended to qualify as a short-term deferral that is exempt from section 409A and provides for distribution or settlement
upon vesting or lapse of a risk of forfeiture, and the time of such distribution or settlement is not otherwise specified in the Plan
or the Award Agreement or other governing document, the distribution or settlement shall be made by the fifteenth day of the third month
after the end of the Plan Year following the Plan Year in which such Award vested or the risk of forfeiture lapsed. In the case of any
distribution of any other Award subject to Code section 409A, if the timing of such distribution is not otherwise specified in the Plan,
Award Agreement or other governing document, the distribution shall be made not later than the end of the calendar year during which the
settlement of such Award is specified to occur.

 

17.4    Delay in Payment.
Notwithstanding anything to the contrary in the Plan, (a) if upon the date of a Participant’s “separation from service”
(as defined for purposes of Code sections 409A(a)(2)(A)(i) and 409A(a)(2)(B)(i)) with the Company and its controlled subsidiaries and
affiliates the Participant is a “specified employee” within the meaning of Code section 409A (determined by applying the default
rules applicable under such Code section except to the extent such rules are modified by a written resolution that is adopted by the Committee
and that applies for purposes of all deferred compensation plans of the Company and its affiliates), and the deferral of any amounts otherwise
payable under Plan as a result of the Participant’s separation from service is necessary to prevent any accelerated or additional
tax to the Participant under Code section 409A, then the Company shall defer the payment of any such amounts hereunder until the date
that is six months following the date of the Participant’s separation from service, at which time any such delayed amounts
shall be paid or provided to the Participant and (b) if any other payments of money or other Awards or benefits due to a Participant hereunder
could cause the application of an accelerated or additional tax under Code section 409A, such payments or other benefits shall be deferred
and paid on the first day that would not result in the Participant incurring any tax liability under Code section 409A if such deferral
would make such payment or other benefits compliant under section 409A of the Code.

 

    24

     

    

 

Exhibit A

 

Participating Affiliates

 

Skyward Specialty Insurance Group, Inc.

 

Skyward Service Company

 

Skyward Underwriters Agency, Inc.

 

    25

     

    

 

SKYWARD
SPECIALTY INSURANCE GROUP, INC.

LONG-TERM
INCENTIVE PLAN

2021-2023 Long-Term Performance Cash Award Agreement

 

THIS AWARD AGREEMENT (this
 "Agreement") is made effective as of the _____ day of _____________ 20___, (the “Grant Date”) by Skyward Specialty
Insurance Group, Inc. a Delaware Corporation (the "Company") and its participating Affiliates, as defined in the Plan, and its
terms are acknowledged and agreed to by [NAME OF PERSON RECEVING AWARD] (the "Participant").

 

WHEREAS,
the Board of Directors of the Company (the "Board") has adopted the Skyward Specialty Insurance Group, Inc. Long-Term Incentive
Plan (2020), as amended and restated from time to time (the "Plan"), which Plan is incorporated herein by reference and made
part of this Agreement;

 

WHEREAS,
any Capitalized terms used in this Agreement, but not defined herein, shall have the meaning as defined in the Plan; and 

 

WHEREAS,
the Compensation Committee of the Board (the "Committee") has decided to grant this award of long-term performance cash (the
 "LTP Cash Award") to the Participant pursuant to the Plan and the terms set forth herein.

 

NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

1.                
Grant of the LTP Cash Award. Pursuant to Section 11 of the Plan, the Company hereby grants to the Participant a LTP Cash
Award (this "Award") in the target amount of $[AMOUNT], in consideration for the achievement of specific performance objectives
during the established performance period, the determination of which is in the sole discretion of the Committee. The LTP Cash Award amount
that the Participant actually earns for the Award Period will be determined by the Committee based on the level of achievement of certain
performance objectives as provided below.

 

2.                
Award Period. For purposes of this Award, the term "Award Period" shall be the period commending on January 1,
2021 and ending on December 31 2023.

 

3.                
Performance Objectives. The Committee will determine the amount of the LTP Cash Award earned by the Participant after the
end of the Award Period based on the level of achievement of the performance objectives set forth in Exhibit A. All determinations
of whether performance objectives have been achieved, the amount of the LTP Cash Award earned by the Participant, and all other matters
related to this Section 3 shall be made by the Committee in its sole discretion. No later than the 15th day of the third month
following the end of the Award Period, the Committee will review and certify in writing (a) whether, and to what extent, the performance
objections for the Award Period have been achieved, and (b) the amount of LTP Cash Award that the Participant shall earn if any, subject
to the vesting requirements of Section 4 below. Such certification shall be final, conclusive and binding on the Participant and on all
other persons, to the maximum extent permitted by law.

 

4.                
Vesting of LTP Cash Award. Unless and until vested, the Participant shall have no rights to the compensation represented
by the LTP Cash Award granted pursuant to this Award, and such LTP Cash shall be subject to forfeiture as provided herein and in the
Plan. The LTP Cash will vest, if at all, on the date the Committee certifies the Participant’s achievement of the performance objectives
as provided in Section 3 above (the "Vesting Date"). On the Vesting Date, vesting of the LTP Cash granted pursuant to this
Award will occur in accordance with the provisions set forth in Article 11 of the Plan and pursuant to the following: (a) the Participant
must have achieved the minimum threshold performance objectives for payout set forth in Exhibit A attached hereto; and (b) the Participant
must have been and remain continuously employed with the Company from the Grant Date through the Vesting Date. The amount of LTP Cash
that vest and become payable under this Agreement shall be determined by the Committee based on the level of achievement of the performance
objectives set forth in Exhibit A.

 

    1 

     

    

 

5.                
Separation from Service. Notwithstanding the vesting conditions specified in Section 4, if the Participant Separates from
Service with the Company prior to the end of the Award Period due to death or Disability, or due to the divesture or wind-down of a Business
Unit, or if Participant experiences a Double Trigger event, the LTP Cash Award will vest in accordance with the terms of the Plan.

 

Except
as otherwise set forth herein or in the Plan, if the Participant Separates from Service with the Company prior to the end of the Award
Period for any reason other than those specified in the foregoing subparagraph, all unvested or unsettled LTP Cash Awards shall be forfeited
and no payment shall be made. 

 

6.                
Payment. Upon vesting, the LTP Cash Award will be settled for cash. The amount of performance adjusted LTP Cash Award will
be calculated as the product of the target amount of the LTP Cash Award and the performance factor certified by the Committee. Any cash
payment for a vested LTP Cash Award will be paid in a reasonable period of time after certification by the Committee, but in any event
by the 15th day of the third month following the end of the year in which the LTP Cash Award payment is no longer subject to
substantial risk of forfeiture.

 

7.                
No Rights as a Shareholder. LTP Cash Awards are not Shares or other equity interest in the Company or any participating
Affiliate. The Participant shall have none of the rights of a shareholder or owner of equity interests in the Company or any participating
Affiliate with respect to the LTP Cash granted in this Award.

 

8.                
Tax Withholding. The Company and its participating Affiliates shall have the right to withhold or require separate payment
of all federal, state, local or other taxes or payments with respect to any Award or payment made under the Plan. Such amounts shall be
withheld or paid prior to the delivery of any amount payable under an Award subject to such withholding. To the extent permitted by the
Company, such a payment may be made by a) the delivery of cash to the Company or applicable Affiliate in an amount that equals or exceeds
the withholding obligation of the Company, or b) authorizing the Company to withhold from any cash payment made under an Award an amount
that equals or exceeds the withholding obligation of the Company. All determinations of withholding liability under this section shall
be made by the Company in its sole discretion and shall be binding upon the Participant and any Beneficiary.

 

Notwithstanding
any action the Company takes with respect to any or all income tax, social security insurance, payroll tax, or other tax-related withholding
("Tax Related Items"), the ultimate liability for all Tax Related Items is and remains the Participant’s responsibility
and the Company makes no representations or undertakings regarding the treatment of any Tax Related Items in connection with the grant,
vesting or settlement of the LTP Cash Award. 

 

9.                
Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption there under and shall
be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section
409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this
Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties,
interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.

 

    2 

     

    

 

10.              
Clawback upon Breach of Non-Solicitation or Confidentiality Covenants. Amounts paid pursuant to this Agreement are subject
to clawback by the Company pursuant to Section 11.4 of the Plan. The Participant will be required to enter into an agreement with the
Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time to
time. If the Committee determines that the Participant has breached such agreement: (i) all unvested or unsettled LTP Cash Awards respecting
the Participant will be forfeited; and (ii) the Participant shall, within ten (10) days of notice of the Committee’s determination
of such breach, repay all cash paid in settlement of the LTP Cash Award within twelve (12) months preceding the Participant’s Separation
of Service. These forfeiture and clawback rights are in addition to, and not in substitution of, any rights of repurchase or other recoupment
rights the Company may have.

 

11.              
Compliance with Laws. The granting of the LTP Cash Award and any other obligations of the Company under this Agreement shall
be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory
or governmental agency as may be required.

 

12.              
No Right to Continued Employment. Neither the Plan nor this Agreement shall be construed as giving the Participant the right
to be retained in any position, as an Employee or Director, with the Company. Further, the Company may at any time dismiss the Participant
or discontinue any relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly
provided herein in this Agreement or the Plan. In addition, nothing herein shall obligate the Company to make future awards to the Participant.

 

13.              
No Impact on Other Benefits. The value of the Participant’s Award is not part of his or her normal or expected compensation
for purposes of calculate any severance, retirement, welfare, insurance or similar employee benefit.

 

14.              
Award Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that (i) this Award is subject
to all of the terms and conditions set forth in the Plan and this Agreement; and (ii) the Participant has received and read a copy of
the Plan and understands the terms of the Plan. Capitalized terms not explicitly defined in this Agreement but defined in the Plan shall
have the same meaning as in the Plan.

 

15.              
Beneficiary Designation. The Participant may file with the Company a written designation of a beneficiary on such form as
may be prescribed by the Company and may, from time to time, amend or revoke such designation (a “Beneficiary). If no Beneficiary
is designated, if the designation is ineffective, or if the Beneficiary dies before the balance of the Participant's benefit is paid,
the balance shall be paid to the Participant's legal spouse, if any, or in the absence of any of the above, to the Participant’s
estate. Notwithstanding the foregoing, however, the Participant's Beneficiary shall be determined under applicable state law if such state
law does not recognize Beneficiary designations under Awards of this type and is not preempted by laws which recognize thy provisions
of this Section.

 

16.              
Non-Transferability. All amounts payable under this Award constitute remuneration for personal service. Awards, and the
right to payment under an Award, shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the
Participant in any respect whatsoever, except that amounts payable under an Award may be paid to a Beneficiary in accordance with the
terms of the Plan and the Award Agreement. Any assignment, alienation, pledge, attachment, transfer, or encumbrance contrary to the foregoing
shall be void.

 

    3 

     

    

 

17.               Successors and Assigns. This Award shall be binding upon and inure to the benefit of the Company and its successors and
assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

18.               Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for
review. The resolution for such dispute by the Committee shall be final and binding on the Participant and the Company.

 

19.               Discretionary
Nature of the Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in the Company’s
sole discretion. The grant of the Award in this Agreement does not create any contractual right or other right to receive any Awards
or other grants in the future. Future grants, if any, will be at the sole discretion of the Company. Any amendment, modification, or
termination of the Plan shall not constitute a change or impairment of the terms and conditions of Participant’s employment with
the Company.

 

20.               Amendment; Waiver. The Committee at any time, and from time to time, may amend the terms of this Agreement, provided,
however, that the rights of the Participant shall not be materially adversely affected without the Participant's written consent (except
to the extent permitted under the Plan). No waiver of any right hereunder by any party shall operate as a waiver of any other right, or
as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.

 

21.               Notice. Any notice necessary under this Award shall be addressed to the Corporate Secretary of the Company at the Company's
principal executive offices and to the Participant at the address appearing in the personnel records of the Company or to either party
at such other address as such party, hereto, may hereafter designate in writing to the other. Any such notice shall be deemed effective
upon receipt thereof by the addressee.

 

22.               
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

 

23.                Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation
or construction, and shall not constitute a part, of this Agreement.

 

24.                Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Texas.

 

25.               Entire
Agreement. This Agreement, the Plan, and the rules and procedures adopted by the Committee, contain all of the provisions applicable
to this Award. No other statements, documents or practices may modify, waive or alter this Agreement unless expressly set forth in writing,
signed by an authorized officer of the Company and delivered to the Participant, and no statements, documents or practices may modify,
waive or alter the Plan except by an amendment to the Plan made in accordance with the terms of the Plan.

 

26.                Signature
in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

 

    4 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	By:	 	 	By:	 
	 	[PARTICIPANT NAME]	 	[SIGNATORY NAME]
	 	 	[TITLE]
	 	 	Skyward Specialty Insurance Group, Inc.

 

Award Details:

$[AMOUNT]
of Long-Term Performance Cash

 

    5 

     

    

 

 

EXHIBIT
A

 

The Award Period is made up of
three Performance Periods, such Performance Periods to be:

 

	Performance Period 1	 	January 1, 2021 to December 31, 2021	 
	 	 	 	 
	Performance Period 2	 	January 1, 2022 to December 31, 2022	 
	 	 	 	 
	Performance Period 3	 	January 1, 2023 to December 31, 2023	 

 

The of amount
of the total LTP Cash Award earned shall be determined by reference to the Company’s Combined Ratio, as provided on the Company’s
year-end GAAP financial statements. The Combined Ratio for the Award Period shall be determined as a straight-line average of the Combined
Ratios at year-end of each of the Performance Periods. 

 

An overall
funding pool will be established for all Participants, subject to a percentage adjustment, (the “Performance-Adjusted Pool”),
up or down, based on the three-year calculated Combined Ratio, as noted below. Each Business Unit will receive an allocation of the Performance-Adjusted
Pool based on an assessment of the Business Unit’s performance during the Award Period relative to that of all other Business Units
and to be expressed as a percentage amount. The Business Unit allocation is determined by the CEO, in his/her sole discretion; which decision
is final. Participants in each Business Unit shall earn their respective Business Unit’s percentage amount applied against their
target LTP amount.

 

	Calculated 3-year 
 Combined Ratio	 	 	% of Targeted LTP Cash 
 Award	 
	 	89.5	%	 	 	150	%
	 	90.5	%	 	 	140	%
	 	91.5	%	 	 	130	%
	 	92.5	%	 	 	120	%
	 	93.5	%	 	 	110	%
	 	94.5	%	 	 	100	%
	 	95.5	%	 	 	80	%
	 	96.5	%	 	 	60	%
	 	97.5	%	 	 	40	%
	 	>97.5	 	 	 	0	%

 

    6 

     

    

 

SKYWARD
SPECIALTY INSURANCE GROUP, INC.

LONG-TERM
INCENTIVE PLAN

2021-2023 Performance Share Award Agreement

 

THIS AWARD AGREEMENT
(this "Agreement") is made effective as of the [DAY] day of [MONTH] [YEAR], (the "Grant
Date") by Skyward Specialty Insurance Group, Inc. a Delaware Corporation (the "Company")
and its participating Affiliates, as defined in the Plan, and its terms are acknowledged and agreed to by [NAME OF PERSON RECEVING
AWARD] (the "Participant").

 

 

WHEREAS,
the Board of Directors of the Company (the "Board") has adopted the Skyward Specialty Insurance Group, Inc. Long-Term Incentive
Plan (2020), as amended and restated from time to time (the "Plan"); and

 

WHEREAS,
any Capitalized terms used in this Agreement, but not defined herein, shall have the meaning as defined in the Plan; and 

 

WHEREAS,
the Compensation Committee of the Board (the "Committee") has decided to grant this award of performance shares (the "Performance
Shares") to the Participant pursuant to the Plan and the terms set forth herein.

 

NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

 1.                    Grant of the Performance Shares. Pursuant to Section 9 of the Plan, the Company hereby grants to the Participant a Performance Share Award in the target amount of [NUMBER OF SHARES] Performance Shares (this "Award") in consideration for the achievement of specific performance objectives by the Participant during his/her employment, the determination of which is in the sole discretion of the Committee. Each Performance Share represents the right to receive one Share of common stock. The number of Performance Shares that the Participant actually earns for the Award Period (up to a maximum of [NUMBER OF SHARES]) will be determined by the Committee based on the level of achievement of certain performance, as provided below.

 

The
Performance Shares shall be credited to a notional account that is separate from the Company’s stock ledger (the “Participant
Account”), maintained by the Company on the books and records of the Company, and shall be considered the general assets of the
Company. 

 

2.                   
Award Period. For purposes of this Award, the term "Award Period"
shall be the period commencing on January 1, 2021 and ending on December 31 2023.

 

3.                   
Performance Objectives. The Committee will determine the number of Performance Shares earned by the Participant for the
Award Period after the end of the Award Period based on the level of achievement of the performance objectives set forth in Exhibit A.
All determinations of whether performance objectives have been achieved, the number of Performance Shares earned by the Participant,
and all other matters related to this Section 3 shall be made by the Committee in its sole discretion. No later than the 15th
day of the third month following the end of the Award Period, the Committee will review and certify in writing (a) whether, and to what
extent, the performance objections for the Award Period have been achieved, and (b) the number of Performance Shares that the Participant
shall earn, if any, subject to the vesting requirements of Section 4 below. Such certification shall be final, conclusive and binding
on the Participant and on all other persons, to the maximum extent permitted by law.

 

    7 

     

    

 

4.                
Vesting of Performance Shares. Unless and until vested, the Participant shall have no rights to the compensation represented
by the Performance Shares granted pursuant to this Award, and such Performance Shares shall be subject to forfeiture as provided herein
and in the Plan. The Performance Shares will vest, if at all, on the date the Committee certifies the Participant’s achievement
of the performance objectives as provided in Section 3 above (the "Vesting Date").
On the Vesting Date, vesting of Performance Shares granted pursuant to this Award will occur in accordance with the provisions set forth
in Article 9 of the Plan and pursuant to the following: (a) the Participant must have achieved the minimum threshold performance objectives
for payout set forth in Exhibit A attached hereto; and (b) the Participant must have been and remain continuously employed with the Company
from the Grant Date through the Vesting Date. The number of Performance Shares that vest and become payable under this Agreement shall
be determined by the Committee based on the level of achievement of the performance objectives set forth in Exhibit A and shall be rounded
to the nearest whole Performance Share.

 

5.                
Separation from Service. Notwithstanding the vesting conditions specified in Section 4, if the Participant Separates from
Service with the Company prior to the end of the Award Period due to death or Disability, or due to the divestiture or wind-down of a
Business Unit, or if Participant experiences a Double Trigger event, the Performance Shares will vest in accordance with the terms of
the Plan.

 

Except
as otherwise set forth herein or in the Plan, if the Participant's Separates from Service with the Company prior to the end of the Award
Period, then (i) all unvested and unsettled Performance Shares, all Dividend Equivalent Rights and all credits granted under Dividend
Equivalent Rights shall be forfeited; and (ii) if there is no public market for the Shares, the Participant may offer to sell all or any
portion of his/her Shares previously issued in settlement of vested Performance Shares by submitting, at least one year in advance of
sale date, an irrevocable written offer to the CEO to sell a specified number of Shares. If accepted, such Shares will be purchased by
the Company at the Book Value Per Share in effect as of the date that is twelve (12) months following receipt of the request, with the
closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months following
receipt of the request. 

 

6.                
Settlement. Upon vesting, Performance Shares will be settled in Shares or, under circumstances provided under this Agreement
or Article 9 of the Plan, for cash, or any combination thereof as the Committee may determine. Settlement shall occur within a reasonable
period of time after the Committee has so certified, but in any event by the 15th day of the third month following the end of the year
in which the Shares are no longer subject to the substantial risk of forfeiture. The Participant shall not have any rights of a shareholder
with respect to the Shares of common stock underlying the Performance Shares unless and until the Performance Shares vest and are settled
by the issuance of such Shares of Common stock.

 

7.                
Rights as a Shareholder. Upon and following the settlement of the Performance Shares in Shares, the Participant shall be
the record owner of the Shares underlying the Performance Shares unless and until shares are cancelled or repurchased by the Company or
are otherwise transferred pursuant to the terms of the Shareholder Agreement. As the record owner of Shares, the Participant shall be
entitled to all rights of a common shareholder of the Company, including the right to vote the Shares. Following the settlement date,
and in any event no later than twelve (12) months following the completion of such vesting, the Company shall issue and deliver to Participant
the hard-copy certificate memorializing the number of Shares owned by the Participant.

 

    8 

     

    

 

8.                
 Shareholder Agreement. In connection with, and as a condition to the vesting and settlement of the Performance Shares,
the Participant will be required to become a party to the Company’s Shareholder Agreement (the "Shareholder
Agreement"). The Shareholder Agreement may contain restrictions on the transferability of the
Shares (such as a right of first refusal or a prohibition on transfer), and such Shares may be subject to tag-along rights and drag-along
rights of the Company and certain of its investors and repurchase rights of the Company, among other provisions, as provided in Section
9.5 of the Plan. 

 

9.                
Dividend Equivalent Rights. In connection with and as a component of this Performance Share Award, the Committee hereby
further grants Participant a Dividend Equivalent Right. As such, if prior to the settlement date of a vested Performance Share, the Company
declares a cash or stock dividend on its Shares of common stock, then on the payment date of the dividend, the Participant’s Account
shall be credited with dividend equivalents in the amount equal to the dividends that would have been paid to the Participant if one Share
had been issued on the Grant Date for each of the target Performance Shares granted to the Participant in this Award. Dividend equivalents
credited to the Participant’s Account shall be deemed to be reinvested in additional Performance Shares (which may thereafter accrue
additional Dividend Equivalent Rights). Any such reinvestment shall be at the Book Value Per Share in effect at the time thereof. Dividend
Equivalent Rights may be settled in cash or Shares, or a combination thereof. Dividend Equivalent Rights that are a component of a Performance
Share Award shall be settled concurrently with the Performance Shares to which they relate and shall expire or be forfeited or annulled
under the same conditions as such Performance Share.

 

10.              
Legend. Shares issued in connection with stock settlement of Performance Shares shall be subject to such stop transfer orders
and other restrictions as the Committee may deem advisable under the Plan, the Shareholder Agreement, or the rules, regulations, and other
requirements of the Securities and Exchange Commission, any share exchange upon which the Company’s Common Stock are listed, and
any applicable federal, state or foreign laws, and the Committee may cause an appropriate reference to such restrictions to be made in
the Company's share transfer books or on any certificate that may be issued to evidence any vested Shares.

 

11.                Tax Withholding. The Company and its participating Affiliates shall have the right to withhold or require separate payment
of all federal, state, local or other taxes or payments with respect to any Award or payment made under the Plan. Such amounts shall be
withheld or paid prior to the delivery of any amount payable under an Award subject to such withholding. To the extent permitted by the
Company, such a payment may be made by a) the delivery of cash to the Company or applicable Affiliate in an amount that equals or exceeds
the withholding obligation of the Company, b) authorizing the Company to withhold from any cash payment made under an Award an amount
that equals or exceeds the withholding obligation of the Company; or c) authorizing the Company to withhold from the Performance Shares
granted under the Award, the number of Performance Shares of common stock as are necessary to satisfy the Company’s withholding
obligation, valuing such Performance Shares at Book Value Per Share. All determinations of withholding liability under this section shall
be made by the Company in its sole discretion and shall be binding upon the Participant and any Beneficiary.

 

Notwithstanding any
action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("Tax
Related Items"), the ultimate liability for all Tax Related Items is and remains the Participant’s
responsibility and the Company makes no representations or undertakings regarding the treatment of any Tax Related Items in connection
with the grant, vesting or settlement of the Performance Shares or the subsequent sale of any shares. Further the Company does not commit
to structure the Performance Shares to reduce or eliminate the Participant’s liability for Tax Related Items. 

 

    9 

     

    

 

12.                Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption there under and shall
be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section
409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this
Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties,
interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.

 

13.               Clawback
upon Breach of Non-Solicitation or Confidentiality Covenants. Amounts paid or Shares awarded pursuant to this Agreement are subject
to clawback by the Company pursuant to Section 9.6 of the Plan. The Participant will be required to enter into an agreement with the
Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time to
time. If the Committee determines that the Participant has breached such agreement: (i) all unvested or unsettled Performance Shares
respecting the Participant will be forfeited; (ii) all Dividend Equivalent Rights and credits granted under Dividend Equivalent Rights
shall be forfeited; (iii) all Shares issued in settlement of Performance Share Awards shall immediately be cancelled, and upon cancellation
the Participant shall have no further rights under or to such Shares; and (iv) the Participant shall, within ten (10) days of notice
of the Committee’s determination of such breach, surrender any certificates evidencing such Shares not in the Company’s custody
or control and repay all cash payable or paid in settlement of the Performance Shares. These forfeiture and clawback rights are in addition
to, and not in substitution of, any rights of repurchase or other recoupment rights the Company may have.

 

14.                Securities
Laws. The granting of the Performance Shares and any other obligations of the Company under this Agreement shall be subject to all
applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental
agency as may be required. At the end of the Restricted Period, the Participant will make or enter into such written representations,
warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws and with this Agreement.

 

15.                No Right to Continued Employment. Neither the Plan nor this Agreement shall be construed as giving the Participant the right
to be retained in any position, as an Employee or Director, with the Company. Further, the Company may at any time dismiss the Participant
or discontinue any relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly
provided herein in this Agreement or the Plan. In addition, nothing herein shall obligate the Company to make future awards to the Participant.

 

16.              
No Impact on Other Benefits. The value of the Participant’s Award is not part of his or her normal or expected compensation
for purposes of calculate any severance, retirement, welfare, insurance or similar employee benefit.

 

17.                Award
Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that: (i) this Award is subject to all
of the terms and conditions set forth in the Plan and this Agreement; and (ii) the Participant has received and read a copy of the Plan
and understands the terms of the Plan and this Agreement. Capitalized terms not explicitly defined in this Agreement but defined in the
Plan shall have the same meaning as in the Plan.

 

18.                Beneficiary
Designation. The Participant may file with the Company a written designation of a beneficiary on such form as may be prescribed by
the Company and may, from time to time, amend or revoke such designation (a “Beneficiary). If no Beneficiary is designated, if
the designation is ineffective, or if the Beneficiary dies before the balance of the Participant's benefit is paid, the balance shall
be paid to the Participant's legal spouse, if any, or in the absence of any of the above, to the Participant’s estate.

 

Notwithstanding the foregoing, however, the Participant's Beneficiary shall be determined under applicable state law if such
state law does not recognize Beneficiary designations under Awards of this type and is not preempted by laws which recognize thy provisions
of this Section.

 

    10 

     

    

 

19.               
Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required,
the Performance Shares shall be adjusted or terminated in any manner as contemplated by the Plan.

 

20.               Non-Transferability.
All amounts payable or Shares granted under an Award constitute remuneration for personal services. Awards, and the right to payment
under an Award, shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant in
any respect whatsoever, except that amounts payable under an Award may be paid to a Beneficiary in accordance with the terms of the Plan
and the Award Agreement. Any assignment, alienation, pledge, attachment, transfer, or encumbrance contrary to the foregoing shall be
void.

 

21.                Successors
and Assigns. This Award shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the
Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

22.                Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for
review. The resolution for such dispute by the Committee shall be final and binding on the Participant and the Company.

 

23.                Discretionary
Nature of the Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in the Company’s
sole discretion. The grant of the Award in this Agreement does not create any contractual right or other right to receive any Performance
Shares or other grants in the future. Future grants, if any, will be at the sole discretion of the Company. Any amendment, modification,
or termination of the Plan shall not constitute a change or impairment of the terms and conditions of Participant’s employment
with the Company.

 

24.              
Amendment; Waiver. The Committee at any time, and from time to time, may amend the terms of this Agreement, provided,
however, that the rights of the Participant shall not be materially adversely affected without the Participant's written consent (except
to the extent permitted under the Plan). No waiver of any right hereunder by any party shall operate as a waiver of any other right, or
as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.

 

25.               
Notice. Any notice necessary under this Award shall be addressed to the Corporate Secretary of the Company at the Company's
principal executive offices and to the Participant at the address appearing in the personnel records of the Company or to either party
at such other address as such party, hereto, may hereafter designate in writing to the other. Any such notice shall be deemed effective
upon receipt thereof by the addressee.

 

26.               
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

 

27.              
Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation
or construction, and shall not constitute a part, of this Agreement.

 

    11 

     

    

 

28.              
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Texas.

 

29.              
Entire Agreement. This Agreement, the Plan, and the rules and procedures adopted by the Committee, contain all of the provisions
applicable to this Award. No other statements, documents or practices may modify, waive or alter this Agreement unless expressly set forth
in writing, signed by an authorized officer of the Company and delivered to the Participant, and no statements, documents or practices
may modify, waive or alter the Plan except by an amendment to the Plan made in accordance with the terms of the Plan.

 

30.               
Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.

 

    12 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	By:	 	 	By:	 
	[Participant Name]	 	[Name of Signatory]
	 	 	 	[Title of Signatory]
	 	 	 	Skyward Specialty
Insurance Group, Inc.

 

Award Detail

Target: [NUMBER] Performance Shares

 

    13 

     

    

 

 

EXHIBIT A

 

The Award Period is made up of
three Performance Periods, such Performance Periods to be:

 

	Performance Period 1	 	January 1, 2021 to December 31, 2021	 
	 	 	 	 
	Performance Period 2	 	January 1, 2022 to December 31, 2022	 
	 	 	 	 
	Performance Period 3	 	January 1, 2023 to December 31, 2023	 

 

The number of Performance Shares
earned shall be determined by reference to the Company’s Combined Ratio, as provided on the Company’s year-end GAAP financial
statements, as certified by the Committee. The Combined Ratio for the Award Period shall be determined as a straight-line average of the
Combined Ratios at year-end of each of the Performance Periods. 

 

Participant shall earn the percentage
of the targeted number of Performance Shares (such percentage to be interpolated) based on the three-year calculated Combined Ratio, as
noted below:

 

	Calculated 3-year 
 Combined Ratio	 	 	% of Targeted Shares 
 Earned	 
	 	89.5	%	 	 	150	%
	 	90.5	%	 	 	140	%
	 	91.5	%	 	 	130	%
	 	92.5	%	 	 	120	%
	 	93.5	%	 	 	110	%
	 	94.5	%	 	 	100	%
	 	95.5	%	 	 	80	%
	 	96.5	%	 	 	60	%
	 	97.5	%	 	 	40	%
	 	>97.5	 	 	 	0	%

 

    14 

     

    

 

SKYWARD
SPECIALTY INSURANCE GROUP, INC.

LONG-TERM
INCENTIVE PLAN

2021-2023 Performance Share Award Agreement

 

THIS AWARD AGREEMENT (this "Agreement")
is made effective as of the [DAY] day of [MONTH] [YEAR], (the “Grant Date”) by Skyward Specialty Insurance Group, Inc. a Delaware
Corporation (the "Company") and its participating Affiliates, as defined in the Plan, and its terms are acknowledged and agreed
to by [NAME OF PERSON RECEVING AWARD] (the "Participant").

 

WHEREAS,
the Board of Directors of the Company (the "Board") has adopted the Skyward Specialty Insurance Group, Inc. Long-Term Incentive
Plan (2020), as amended and restated from time to time (the "Plan"); and

 

WHEREAS,
any Capitalized terms used in this Agreement, but not defined herein, shall have the meaning as defined in the Plan; and 

 

WHEREAS,
the Compensation Committee of the Board (the "Committee") has decided to grant this award of performance shares (the "Performance
Shares") to the Participant pursuant to the Plan and the terms set forth herein.

 

NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

 1.                  Grant of the Performance Shares. Pursuant to Section 9 of the Plan, the Company hereby grants to the Participant a Performance Share Award in the target amount of [NUMBER OF SHARES] Performance Shares (this "Award") in consideration for the achievement of specific performance objectives by the Participant during his/her employment, the determination of which is in the sole discretion of the Committee. Each Performance Share represents the right to receive one Share of common stock. The number of Performance Shares that the Participant actually earns for the Award Period (up to a maximum of [NUMBER OF SHARES]) will be determined by the Committee based on the level of achievement of certain performance, as provided below.

 

The Performance
Shares shall be credited to a notional account that is separate from the Company’s stock ledger (the "Participant
Account"), maintained by the Company on the books and records of the Company, and shall be considered
the general assets of the Company. 

 

2.                
Award Period. For purposes of this Award, the term "Award Period"
shall be the period commencing on January 1, 2021 and ending on December 31 2023.

 

3.                 
Performance Objectives. The Committee will determine the number of Performance Shares earned by the Participant for the
Award Period after the end of the Award Period based on the level of achievement of the performance objectives set forth in Exhibit A.
All determinations of whether performance objectives have been achieved, the number of Performance Shares earned by the Participant,
and all other matters related to this Section 3 shall be made by the Committee in its sole discretion. No later than the 15th
day of the third month following the end of the Award Period, the Committee will review and certify in writing (a) whether, and to what
extent, the performance objections for the Award Period have been achieved, and (b) the number of Performance Shares that the Participant
shall earn, if any, subject to the vesting requirements of Section 4 below. Such certification shall be final, conclusive and binding
on the Participant and on all other persons, to the maximum extent permitted by law.

 

    15 

     

    

 

4.                 
Vesting of Performance Shares. Unless and until vested, the Participant shall have no rights to the compensation represented
by the Performance Shares granted pursuant to this Award, and such Performance Shares shall be subject to forfeiture as provided herein
and in the Plan. The Performance Shares will vest, if at all, on the date the Committee certifies the Participant’s achievement
of the performance objectives as provided in Section 3 above (the "Vesting Date").
On the Vesting Date, vesting of Performance Shares granted pursuant to this Award will occur in accordance with the provisions set forth
in Article 9 of the Plan and pursuant to the following: (a) the Participant must have achieved the minimum threshold performance objectives
for payout set forth in Exhibit A attached hereto; and (b) the Participant must have been and remain continuously employed with the Company
from the Grant Date through the Vesting Date. The number of Performance Shares that vest and become payable under this Agreement shall
be determined by the Committee based on the level of achievement of the performance objectives set forth in Exhibit A and shall be rounded
to the nearest whole Performance Share.

 

5.                 
Separation from Service. Notwithstanding the vesting conditions specified in Section 4, if the Participant Separates from
Service with the Company prior to the end of the Award Period due to death or Disability, or due to the divestiture or wind-down of a
Business Unit, or if Participant experiences a Double Trigger event, the Performance Shares will vest in accordance with the terms of
the Plan.

 

Except
as otherwise set forth herein or in the Plan, if the Participant's Separates from Service with the Company prior to the end of the Award
Period, then (i) all unvested and unsettled Performance Shares, all Dividend Equivalent Rights and all credits granted under Dividend
Equivalent Rights shall be forfeited; and (ii) if there is no public market for the Shares, the Participant may offer to sell all or any
portion of his/her Shares previously issued in settlement of vested Performance Shares by submitting, at least one year in advance of
sale date, an irrevocable written offer to the CEO to sell a specified number of Shares. If accepted, such Shares will be purchased by
the Company at the Book Value Per Share in effect as of the date that is twelve (12) months following receipt of the request, with the
closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months following
receipt of the request. 

 

6.                 
Settlement. Upon vesting, Performance Shares will be settled in Shares or, under circumstances provided under this Agreement
or Article 9 of the Plan, for cash, or any combination thereof as the Committee may determine. Settlement shall occur within a reasonable
period of time after the Committee has so certified, but in any event by the 15th day of the third month following the end of the year
in which the Shares are no longer subject to the substantial risk of forfeiture. The Participant shall not have any rights of a shareholder
with respect to the Shares of common stock underlying the Performance Shares unless and until the Performance Shares vest and are settled
by the issuance of such Shares of Common stock.

 

7.                 
Rights as a Shareholder. Upon and following the settlement of the Performance Shares in Shares, the Participant shall be
the record owner of the Shares underlying the Performance Shares unless and until shares are cancelled or repurchased by the Company or
are otherwise transferred pursuant to the terms of the Shareholder Agreement. As the record owner of Shares, the Participant shall be
entitled to all rights of a common shareholder of the Company, including the right to vote the Shares. Following the settlement date,
and in any event no later than twelve (12) months following the completion of such vesting, the Company shall issue and deliver to Participant
the hard-copy certificate memorializing the number of Shares owned by the Participant.

 

    16 

     

    

 

8.                 
 Shareholder Agreement. In connection with, and as a condition to the vesting and settlement of the Performance Shares,
the Participant will be required to become a party to the Company’s Shareholder Agreement (the "Shareholder
Agreement"). The Shareholder Agreement may contain restrictions on the transferability of the
Shares (such as a right of first refusal or a prohibition on transfer), and such Shares may be subject to tag-along rights and drag-along
rights of the Company and certain of its investors and repurchase rights of the Company, among other provisions, as provided in Section
9.5 of the Plan. 

 

9.                 
Dividend Equivalent Rights. In connection with and as a component of this Performance Share Award, the Committee hereby
further grants Participant a Dividend Equivalent Right. As such, if prior to the settlement date of a vested Performance Share, the Company
declares a cash or stock dividend on its Shares of common stock, then on the payment date of the dividend, the Participant’s Account
shall be credited with dividend equivalents in the amount equal to the dividends that would have been paid to the Participant if one Share
had been issued on the Grant Date for each of the target Performance Shares granted to the Participant in this Award. Dividend equivalents
credited to the Participant’s Account shall be deemed to be reinvested in additional Performance Shares (which may thereafter accrue
additional Dividend Equivalent Rights). Any such reinvestment shall be at the Book Value Per Share in effect at the time thereof. Dividend
Equivalent Rights may be settled in cash or Shares, or a combination thereof. Dividend Equivalent Rights that are a component of a Performance
Share Award shall be settled concurrently with the Performance Shares to which they relate and shall expire or be forfeited or annulled
under the same conditions as such Performance Share.

 

10.               
Legend. Shares issued in connection with stock settlement of Performance Shares shall be subject to such stop transfer orders
and other restrictions as the Committee may deem advisable under the Plan, the Shareholder Agreement, or the rules, regulations, and other
requirements of the Securities and Exchange Commission, any share exchange upon which the Company’s Common Stock are listed, and
any applicable federal, state or foreign laws, and the Committee may cause an appropriate reference to such restrictions to be made in
the Company's share transfer books or on any certificate that may be issued to evidence any vested Shares.

 

11.                Tax
Withholding. The Company and its participating Affiliates shall have the right to withhold or require separate payment of all federal,
state, local or other taxes or payments with respect to any Award or payment made under the Plan. Such amounts shall be withheld or paid
prior to the delivery of any amount payable under an Award subject to such withholding. To the extent permitted by the Company, such
a payment may be made by a) the delivery of cash to the Company or applicable Affiliate in an amount that equals or exceeds the withholding
obligation of the Company, b) authorizing the Company to withhold from any cash payment made under an Award an amount that equals or
exceeds the withholding obligation of the Company; or c) authorizing the Company to withhold from the Performance Shares granted under
the Award, the number of Performance Shares of common stock as are necessary to satisfy the Company’s withholding obligation, valuing
such Performance Shares at Book Value Per Share. All determinations of withholding liability under this section shall be made by the
Company in its sole discretion and shall be binding upon the Participant and any Beneficiary.

 

Notwithstanding any
action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("Tax
Related Items"), the ultimate liability for all Tax Related Items is and remains the Participant’s
responsibility and the Company makes no representations or undertakings regarding the treatment of any Tax Related Items in connection
with the grant, vesting or settlement of the Performance Shares or the subsequent sale of any shares. Further the Company does not commit
to structure the Performance Shares to reduce or eliminate the Participant’s liability for Tax Related Items. 

 

    17 

     

    

 

12.       
          Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption there under and shall
be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section
409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this
Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties,
interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.

 

13.                Clawback
upon Breach of Non-Solicitation or Confidentiality Covenants. Amounts paid or Shares awarded pursuant to this Agreement are subject
to clawback by the Company pursuant to Section 9.6 of the Plan. The Participant will be required to enter into an agreement with the
Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time to
time. If the Committee determines that the Participant has breached such agreement: (i) all unvested or unsettled Performance Shares
respecting the Participant will be forfeited; (ii) all Dividend Equivalent Rights and credits granted under Dividend Equivalent Rights
shall be forfeited; (iii) all Shares issued in settlement of Performance Share Awards shall immediately be cancelled, and upon cancellation
the Participant shall have no further rights under or to such Shares; and (iv) the Participant shall, within ten (10) days of notice
of the Committee’s determination of such breach, surrender any certificates evidencing such Shares not in the Company’s custody
or control and repay all cash payable or paid in settlement of the Performance Shares. These forfeiture and clawback rights are in addition
to, and not in substitution of, any rights of repurchase or other recoupment rights the Company may have.

 

14.               
Securities Laws. The granting of the Performance Shares and any other obligations of the Company under this Agreement shall
be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory
or governmental agency as may be required. At the end of the Restricted Period, the Participant will make or enter into such written representations,
warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws and with this Agreement.

 

15.               
No Right to Continued Employment. Neither the Plan nor this Agreement shall be construed as giving the Participant the right
to be retained in any position, as an Employee or Director, with the Company. Further, the Company may at any time dismiss the Participant
or discontinue any relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly
provided herein in this Agreement or the Plan. In addition, nothing herein shall obligate the Company to make future awards to the Participant.

 

16.               
No Impact on Other Benefits. The value of the Participant’s Award is not part of his or her normal or expected compensation
for purposes of calculate any severance, retirement, welfare, insurance or similar employee benefit.

 

17.               
Award Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that: (i) this Award is
subject to all of the terms and conditions set forth in the Plan and this Agreement; and (ii) the Participant has received and read a
copy of the Plan and understands the terms of the Plan and this Agreement. Capitalized terms not explicitly defined in this Agreement
but defined in the Plan shall have the same meaning as in the Plan.

 

18.               
Beneficiary Designation. The Participant may file with the Company a written designation of a beneficiary on such form
as may be prescribed by the Company and may, from time to time, amend or revoke such designation (a "Beneficiary").
If no Beneficiary is designated, if the designation is ineffective, or if the Beneficiary dies before the balance of the Participant's
benefit is paid, the balance shall be paid to the Participant's legal spouse, if any, or in the absence of any of the above, to
the Participant’s estate. Notwithstanding the foregoing, however, the Participant's Beneficiary shall be determined under applicable
state law if such state law does not recognize Beneficiary designations under Awards of this type and is not preempted by laws which
recognize thy provisions of this Section.

 

    18 

     

    

 

19.               
Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required,
the Performance Shares shall be adjusted or terminated in any manner as contemplated by the Plan.

 

20.               
Non-Transferability. All amounts payable or Shares granted under an Award constitute remuneration for personal services.
Awards, and the right to payment under an Award, shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by the Participant in any respect whatsoever, except that amounts payable under an Award may be paid to a Beneficiary in accordance
with the terms of the Plan and the Award Agreement. Any assignment, alienation, pledge, attachment, transfer, or encumbrance contrary
to the foregoing shall be void.

 

21.               
Successors and Assigns. This Award shall be binding upon and inure to the benefit of the Company and its successors and
assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

22.               
Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the
Company to the Committee for review. The resolution for such dispute by the Committee shall be final and binding on the Participant and
the Company.

 

23.                
Discretionary Nature of the Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at
any time, in the Company’s sole discretion. The grant of the Award in this Agreement does not create any contractual right or other
right to receive any Performance Shares or other grants in the future. Future grants, if any, will be at the sole discretion of the Company.
Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of Participant’s
employment with the Company.

 

24.               
Amendment; Waiver. The Committee at any time, and from time to time, may amend the terms of this Agreement, provided,
however, that the rights of the Participant shall not be materially adversely affected without the Participant's written consent (except
to the extent permitted under the Plan). No waiver of any right hereunder by any party shall operate as a waiver of any other right, or
as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.

 

25.               
Notice. Any notice necessary under this Award shall be addressed to the Corporate Secretary of the Company at the Company's
principal executive offices and to the Participant at the address appearing in the personnel records of the Company or to either party
at such other address as such party, hereto, may hereafter designate in writing to the other. Any such notice shall be deemed effective
upon receipt thereof by the addressee.

 

26.               
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

 

27.               
Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation
or construction, and shall not constitute a part, of this Agreement.

 

    19 

     

    

 

28.               
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Texas.

 

29.                Entire
Agreement. This Agreement, the Plan, and the rules and procedures adopted by the Committee, contain all of the provisions applicable
to this Award. No other statements, documents or practices may modify, waive or alter this Agreement unless expressly set forth in writing,
signed by an authorized officer of the Company and delivered to the Participant, and no statements, documents or practices may modify,
waive or alter the Plan except by an amendment to the Plan made in accordance with the terms of the Plan.

 

30.                Signature
in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

 

    20 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	By:	 	 	By:	 
	[Participant Name]	 	[Signatory Name]
	 	 	 	[Signatory Title]
	 	 	 	Skyward Specialty
Insurance Group, Inc.

 

Award Detail

Target: [NUMBER] Performance Shares

 

    21 

     

    

 

EXHIBIT A

 

The Award Period is made up of
three Performance Periods, such Performance Periods to be:

 

	 	Performance Period 1	 	 	 	January 1, 2021 to December 31, 2021	 
	 	 	 	 	 	 	 
	 	Performance Period 2	 	 	 	January 1, 2022 to December 31, 2022	 
	 	 	 	 	 	 	 
	 	Performance Period 3	 	 	 	January 1, 2023 to December 31, 2023	 

 

The number of Performance Shares
earned shall be determined by reference to the Company’s Growth in Tangible Book Value Per Share (GTBVPS) and the TBVPS provided
on the Company’s year-end GAAP financial statements, as certified by the Committee. The TBVPS for the Award Period shall be determined
as a straight-line average of the TBVPS at year-end of each of the Performance Periods. 

 

Participant shall earn the percentage
of the targeted number of Performance Shares (such percentage to be interpolated) based on growth rate in comparison to the peer group
noted below:

 

	Average 3-Year Relative Performance	 	 	Percentage of Target Shares	 
	 	75th Percentile	 	 	 	150	%
	 	50th Percentile	 	 	 	100	%
	 	25th Percentile	 	 	 	0	%

 

The comparison peer group shall
be:

 

1. Allegheny

2. Argo

3. Global Indemnity

4. Hallmark 

5. International General
Insurance 

6. James River

7. Kinsale

8. Old Republic

9. Pro Assurance

10. ProSight 

11. RLI

 

    22 

     

    

 

SKYWARD
SPECIALTY INSURANCE GROUP, INC.

LONG-TERM
INCENTIVE PLAN

2021-2023 Performance Unit Award Agreement

 

THIS AWARD AGREEMENT (this
 "Agreement") is made effective as of the [DAY] day of [MONTH] [YEAR], (the “Grant Date”) by Skyward Specialty Insurance
Group, Inc. a Delaware Corporation (the "Company") and its participating Affiliates, as defined in the Plan, and its terms are
acknowledged and agreed to by [NAME OF PERSON RECEVING AWARD] (the "Participant").

 

WHEREAS,
the Board of Directors of the Company (the "Board") has adopted the Skyward Specialty Insurance Group, Inc. Long-Term Incentive
Plan (2020), as amended and restated from time to time (the "Plan"), which Plan is incorporated herein by reference and made
part of this Agreement;

 

WHEREAS,
any Capitalized terms used in this Agreement, but not defined herein, shall have the meaning as defined in the Plan; and 

 

WHEREAS,
the Compensation Committee of the Board (the "Committee") has decided to grant this award of performance unit awards (the "Performance
Units") to the Participant pursuant to the Plan and the terms set forth herein.

 

NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

1.                  Grant of the Performance Units. Pursuant to Section 10 of the Plan, the Company hereby grants to the Participant a Performance Unit Award in the target amount of [NUMBER OF UNITS] priced at $100 per Performance Unit (this "Award") in consideration for the achievement of specific performance objectives during the established performance period, the determination of which is in the sole discretion of the Committee. The number of Performance Units that the Participant actually earns for the Award Period (up to a maximum of [NUMBER OF UNITS]) will be determined by the Committee based on the level of achievement of certain performance objectives as provided below.

 

2.                  Award
Period. For purposes of this Award, the term “Award Period” shall be the period commending on January 1, 2021 and ending
on December 31 2023.

 

3.                  Performance
Objectives. The Committee will determine the number of Performance Units earned by the Participant after the end of the Award Period
based on the level of achievement of the performance objectives set forth in Exhibit A. All determinations of whether performance
objectives have been achieved, the number of Performance Units earned by the Participant, and all other matters related to this Section
3 shall be made by the Committee in its sole discretion. No later than the 15th day of the third month following the end of
the Award Period, the Committee will review and certify in writing (a) whether, and to what extent, the performance objections for the
Award Period have been achieved, and (b) the number of Performance Units that the Participant shall earn if any, subject to the vesting
requirements of Section 4 below. Such certification shall be final, conclusive and binding on the Participant and on all other persons,
to the maximum extent permitted by law.

 

    23 

     

    

 

4.                  Vesting
of Performance Shares. Unless and until vested, the Participant shall have no rights to the compensation represented by the Performance
Units granted pursuant to this Award, and such Performance Shares shall be subject to forfeiture as provided herein and in the Plan.
The Performance Units will vest, if at all, on the date the Committee certifies the Participant’s achievement of the performance
objectives as provided in Section 3 above (the "Vesting Date").
On the Vesting Date, vesting of Performance Units granted pursuant to this Award will occur in accordance with the provisions set forth
in Article 10 of the Plan and pursuant to the following: (a) the Participant must have achieved the minimum threshold performance objectives
for payout set forth in Exhibit A attached hereto; and (b) the Participant must have been and remain continuously employed with the Company
from the Grant Date through the Vesting Date. The number of Performance Units that vest and become payable under this Agreement shall
be determined by the Committee based on the level of achievement of the performance objectives set forth in Exhibit A and shall be rounded
to the nearest whole Performance Unit.

 

5.                  Separation
from Service. Notwithstanding the vesting conditions specified in Section 4, if the Participant Separates from Service with the Company
prior to the end of the Award Period due to death or Disability, or due to the divesture or wind-down of a Business Unit, or if Participant
experiences a Double Trigger event, the Performance Units will vest in accordance with the terms of the Plan.

 

Except
as otherwise set forth herein or in the Plan, if the Participant Separates from Service with the Company prior to the end of the Award
Period for any reason other than those specified in the foregoing subparagraph, all unvested or unsettled Performance Units shall be forfeited,
and no payment shall be made. 

 

6.                  Payment.
Upon vesting, Performance Units will be settled for cash. The number of performance adjusted Performance Units will be calculated as
the product of the target number of Performance Units and the performance factor certified by the Committee. Subject to the terms of
this Agreement, the cash payment to be made to the Participant shall be equal to the product of the performance-adjusted Performance
Units and the value of each Unit, which will be paid in a reasonable period of time after certification by the Committee, but in any
event by the 15th day of the third month following the end of the year in which the Performance Units are no longer subject
to substantial risk of forfeiture.

 

7.                  No
Rights as a Shareholder. Performance Units are not Shares or other equity interest in the Company or any participating Affiliate.
The Participant shall have none of the rights of a shareholder or owner of equity interests in the Company or any participating Affiliate
with respect to the Performance Units granted in this Award.

 

8.                  Tax
Withholding. The Company and its participating Affiliates shall have the right to withhold or require separate payment of all federal,
state, local or other taxes or payments with respect to any Award or payment made under the Plan. Such amounts shall be withheld or paid
prior to the delivery of any amount payable under an Award subject to such withholding. To the extent permitted by the Company, such
a payment may be made by a) the delivery of cash to the Company or applicable Affiliate in an amount that equals or exceeds the withholding
obligation of the Company, or b) authorizing the Company to withhold from any cash payment made under an Award an amount that equals
or exceeds the withholding obligation of the Company. All determinations of withholding liability under this section shall be made by
the Company in its sole discretion and shall be binding upon the Participant and any Beneficiary.

 

Notwithstanding
any action the Company takes with respect to any or all income tax, social security insurance, payroll tax, or other tax-related withholding
("Tax Related Items"), the ultimate liability for
all Tax Related Items is and remains the Participant’s responsibility and the Company makes no representations or undertakings regarding
the treatment of any Tax Related Items in connection with the grant, vesting or settlement of the Performance Units. 

 

    24 

     

    

 

9.                  Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption there under and shall
be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section
409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this
Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties,
interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.

 

10.               
Clawback upon Breach of Non-Solicitation or Confidentiality Covenants. Amounts paid pursuant to this Agreement are subject
to clawback by the Company pursuant to Section 10.5 of the Plan. The Participant will be required to enter into an agreement with the
Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time to
time. If the Committee determines that the Participant has breached such agreement: (i) all unvested or unsettled Performance Units respecting
the Participant will be forfeited; and (ii) the Participant shall, within ten (10) days of notice of the Committee’s determination
of such breach, repay all cash paid in settlement of the Performance Units within twelve (12) months preceding the Participant’s
Separation of Service. These forfeiture and clawback rights are in addition to, and not in substitution of, any rights of repurchase or
other recoupment rights the Company may have.

 

11.                Compliance with Laws. The granting of the Performance Units and any other obligations of the Company under this Agreement
shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by
any regulatory or governmental agency as may be required.

 

12.                
No Right to Continued Employment. Neither the Plan nor this Agreement shall be construed as giving the Participant the right
to be retained in any position, as an Employee or Director, with the Company. Further, the Company may at any time dismiss the Participant
or discontinue any relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly
provided herein in this Agreement or the Plan. In addition, nothing herein shall obligate the Company to make future awards to the Participant.

 

13.               
No Impact on Other Benefits. The value of the Participant’s Award is not part of his or her normal or expected compensation
for purposes of calculate any severance, retirement, welfare, insurance or similar employee benefit.

 

14.               
Award Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that (i) this Award is subject
to all of the terms and conditions set forth in the Plan and this Agreement; and (ii) the Participant has received and read a copy of
the Plan and understands the terms of the Plan. Capitalized terms not explicitly defined in this Agreement but defined in the Plan shall
have the same meaning as in the Plan.

 

15.               
Beneficiary Designation. The Participant may file with the Company a written designation of a beneficiary on such form as
may be prescribed by the Company and may, from time to time, amend or revoke such designation (a "Beneficiary").
If no Beneficiary is designated, if the designation is ineffective, or if the Beneficiary dies before the balance of the Participant's
benefit is paid, the balance shall be paid to the Participant's legal spouse, if any, or in the absence of any of the above, to the Participant’s
estate. Notwithstanding the foregoing, however, the Participant's Beneficiary shall be determined under applicable state law if such state
law does not recognize Beneficiary designations under Awards of this type and is not preempted by laws which recognize thy provisions
of this Section.

 

    25 

     

    

 

16.                Non-Transferability.
All amounts payable under this Award constitute remuneration for personal service. Awards, and the right to payment under an Award, shall
not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant in any respect whatsoever,
except that amounts payable under an Award may be paid to a Beneficiary in accordance with the terms of the Plan and the Award Agreement.
Any assignment, alienation, pledge, attachment, transfer, or encumbrance contrary to the foregoing shall be void.

 

17.               
Successors and Assigns. This Award shall be binding upon and inure to the benefit of the Company and its successors and
assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

18.                Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the
Company to the Committee for review. The resolution for such dispute by the Committee shall be final and binding on the Participant and
the Company.

 

19.               
Discretionary Nature of the Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at
any time, in the Company’s sole discretion. The grant of the Award in this Agreement does not create any contractual right or other
right to receive any Performance Units or other grants in the future. Future grants, if any, will be at the sole discretion of the Company.
Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of Participant’s
employment with the Company.

 

20.               
Amendment; Waiver. The Committee at any time, and from time to time, may amend the terms of this Agreement, provided,
however, that the rights of the Participant shall not be materially adversely affected without the Participant's written consent (except
to the extent permitted under the Plan). No waiver of any right hereunder by any party shall operate as a waiver of any other right, or
as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.

 

21.               
Notice. Any notice necessary under this Award shall be addressed to the Corporate Secretary of the Company at the Company's
principal executive offices and to the Participant at the address appearing in the personnel records of the Company or to either party
at such other address as such party, hereto, may hereafter designate in writing to the other. Any such notice shall be deemed effective
upon receipt thereof by the addressee.

 

22.                Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

 

23.                Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation
or construction, and shall not constitute a part, of this Agreement.

 

24.               
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Texas.

 

25.               
Entire Agreement. This Agreement, the Plan, and the rules and procedures adopted by the Committee, contain all of the provisions
applicable to this Award. No other statements, documents or practices may modify, waive or alter this Agreement unless expressly set forth
in writing, signed by an authorized officer of the Company and delivered to the Participant, and no statements, documents or practices
may modify, waive or alter the Plan except by an amendment to the Plan made in accordance with the terms of the Plan.

 

26.               
Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.

 

    26 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	By:	 	 	By:	 
	 	[Participant Name]	 	[SIGNATORY NAME]

[SIGNATORY TITLE]

Skyward Specialty Insurance
Group, Inc.

 

Award
Details:

Target
[NUMBER OF UNITS] of Performance Unit Awards

 

    27 

     

    

 

 

EXHIBIT
A

 

The Award Period is made up of
three Performance Periods, such Performance Periods to be:

 

	Performance Period 1	January 1, 2021 to December 31, 2021
	 	 
	Performance Period 2	January 1, 2022 to December 31, 2022
	 	 
	Performance Period 3	January 1, 2023 to December 31, 2023

 

The
number of Performance Units earned shall be determined by reference to the Company’s Combined Ratio, as provided on the
Company’s year-end GAAP financial statements, as certified by the Committee. The Combined Ratio for the Award Period shall be
determined as a straight-line average of the Combined Ratios at year-end of each of the Performance Periods. 

 

Participant
shall earn the percentage of the targeted number of Performance Units (such percentage to be interpolated) based on the three-year calculated
Combined Ratio, as noted below:

 

	Calculated 3-year 
 Combined Ratio	 	 	% of Targeted Performance Units
 Earned	 
	 	89.5	%	 	 	150	%
	 	90.5	%	 	 	140	%
	 	91.5	%	 	 	130	%
	 	92.5	%	 	 	120	%
	 	93.5	%	 	 	110	%
	 	94.5	%	 	 	100	%
	 	95.5	%	 	 	80	%
	 	96.5	%	 	 	60	%
	 	97.5	%	 	 	40	%
	 	>97.5	 	 	 	0	%

 

    28 

     

    

 

SKYWARD
SPECIALTY INSURANCE GROUP, INC.

LONG-TERM
INCENTIVE PLAN

2021-2023 Restricted Share Award Agreement

 

THIS AWARD AGREEMENT (this
 "Agreement") is made effective as of the [DAY] day of [MONTH] [YEAR], (the “Grant Date”) between Skyward Specialty
Insurance Group, Inc. a Delaware Corporation (the "Company") and its participating Affiliates, as defined in the Plan, and
its terms are acknowledged and agreed to by [NAME OF PERSON RECEVING AWARD] (the "Participant").

 

WHEREAS,
the Board of Directors of the Company (the "Board") has adopted the Skyward Specialty Insurance Group, Inc. Long-Term Incentive
Plan (2020), as amended and restated from time to time (the "Plan"), which Plan is incorporated herein by reference and made
part of this Agreement;

 

WHEREAS,
any Capitalized terms used in this Agreement, but not defined herein, shall have the meaning as defined in the Plan; and 

 

WHEREAS,
the Compensation Committee of the Board (the "Committee") has decided to grant this award of restricted Shares of the Company's
common stock at the book value of $____per share (the "Restricted Shares") to the Participant pursuant to the Plan and the
terms set forth herein.

 

NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

 1.                  Grant of the Restricted Shares. Pursuant to Section 7 of the Plan, the Company hereby grants to the Participant an Award of Restricted Shares (this "Award") consisting of, in the aggregate, [NUMBER OF SHARES] Restricted Shares, in consideration for services to be rendered by the Participant to the Company.

 

2.                  Vesting.
Vesting of Restricted Shares granted pursuant to this Award will occur in accordance with the provision set forth in Article 7 of the
Plan and pursuant to the following vesting schedule:

 

Vesting Date: [VESTING
DATE] 

Number or Percentage
of Restricted Shares: [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE]

 

Vesting Date: [VESTING
DATE] 

Number or Percentage
of Restricted Shares: [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE]

 

To
vest, the Participant must have been and remain continuously employed with the Company from the Grant Date through the Vesting Date(s)
above. Unless and until vested, Restricted Shares granted pursuant to this Award are non-transferrable by Participant and subject to
forfeiture as provided herein. The period during which such Restricted Shares are subject to this restriction shall be referred to herein
as the “Restricted Period.” 

 

3.                  Separation
from Service. The foregoing vesting schedule notwithstanding, if the Participant Separates from Service with the Company prior to
the end of the Restricted Period due to death or Disability, or due to the divestiture or wind-down of a Business Unit, or if Participant
experiences a Double Trigger event, the Restricted Shares will vest in accordance with the terms of the Plan.

 

    29 

     

    

 

Except
as otherwise set forth herein or in the Plan, if the Participant Separates from Service with the Company prior to the end of the Restricted
Period, the Participant shall forfeit any unvested Restricted Shares, and those Restricted Shares shall be cancelled and any certificates
evidencing unvested Restricted Shares not in the custody or control of the Company shall be surrendered to the Company. Further, if the
Participant has vested Restricted Shares and there is no public market for the Restricted Shares, the Participant may offer to sell all
or any portion of his/her vested Restricted Shares by submitting, at least one year in advance of sale date, an irrevocable written offer
to the CEO to sell a specified number of the vested Restricted Shares. If accepted, such Restricted Shares will be purchased by the Company
at the Book Value Per Share in effect as of the date that is twelve (12) months following receipt of the request, with the closing on
such repurchase to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months following receipt
of the request. 

 

4.                  Rights
as a Shareholder. The Participant shall be the record owner of the Restricted Shares until and unless such Restricted Shares are
cancelled or repurchased by the Company. As the record owner the Participant shall be entitled to all rights of a common shareholder
of the Company, including the right to vote the Restricted Shares. Following the Grant Date, and in any event no later than twelve (12)
months following the Grant Date, the Company shall issue and deliver to Participant the hard-copy certificate memorializing the number
of Restricted Shares owned by the Participant.

 

5.                  Shareholder
Agreement. In connection with, and as a condition to the grant of Restricted Shares, the Participant will be required to become a
party to the Company’s Shareholder Agreement (the “Shareholder Agreement”). The Shareholder Agreement may contain restrictions
on the transferability of the Restricted Shares (such as a right of first refusal or a prohibition on transfer), and such Restricted
Shares may be subject to tag-along rights and drag-along rights of the Company and certain of its investors and repurchase rights of
the Company, among other provisions, as provided in Section 7.4 of the Plan.

 

6.                  Legend.
The Restricted Shares shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under
the Plan, the Shareholder Agreement, or the rules, regulations, and other requirements of the Securities and Exchange Commission, any
share exchange upon which such Restricted Shares are listed, and any applicable federal, state or foreign laws, and the Committee may
cause an appropriate reference to such restrictions to be made in the Company's share transfer books or on any certificate that may be
issued to evidence the Restricted Shares.

 

7.                  Tax
Withholding. The Company and its participating Affiliates shall have the right to withhold or require separate payment of all federal,
state, local or other taxes or payments with respect to any Award or payment made under the Plan. Such amounts shall be withheld or paid
prior to the delivery of any amount payable under an Award subject to such withholding. To the extent permitted by the Company, such
a payment may be made by a) the delivery of cash to the Company or applicable Affiliate in an amount that equals or exceeds the withholding
obligation of the Company, b) authorizing the Company to withhold from any cash payment made under an Award an amount that equals or
exceeds the withholding obligation of the Company; or c) authorizing the Company to withhold from the Restricted Shares granted under
the Award, the number of Restricted Shares of common stock as are necessary to satisfy the Company’s withholding obligation, valuing
such Restricted Shares at Book Value Per Share. All determinations of withholding liability under this section shall be made by the Company
in its sole discretion and shall be binding upon the Participant and any Beneficiary.

 

    30 

     

    

 

Notwithstanding
any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (“Tax
Related Items”), the ultimate liability for all Tax Related Items is and remains the Participant’s responsibility and the
Company makes no representations or undertakings regarding the treatment of any Tax Related Items in connection with the grant, vesting
or settlement of the Restricted Shares or the subsequent sale of any shares. Further the Company does not commit to stricter the Restricted
Shares to reduce or eliminate the Participant’s liability for Tax Related Items. 

 

8.                  Section
409A. This Agreement is intended to comply with Section 409A of the Code or an exemption there under and shall be construed and interpreted
in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section
409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses
that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.

 

9.                  Clawback
upon Breach of Non-Solicitation or Confidentiality Covenants. Amounts paid or Shares awarded pursuant to this Agreement are subject
to clawback by the Company pursuant to Section 7.5 of the Plan. The Participant will be required to enter into an agreement with the
Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time to
time. If the Committee determines that the Participant has breached such agreement: (i) all of the Participant’s vested and unvested
Restricted Shares received, awarded, vested or granted pursuant to Restricted Share Awards shall immediately be cancelled; (ii) upon
cancellation the Participant shall have no further rights under or to such Restricted Shares; and (iii) the Participant shall, within
ten (10) days of notice of the Committee’s determination of such breach, surrender certificates evidencing any such Restricted
Shares not in the Company’s custody or control. These clawback rights are in addition to, and not in substitution of, any rights
of repurchase or other recoupment rights the Company may have.

 

10.                Securities
Laws. The granting of the Restricted Shares and any other obligations of the Company under this Agreement shall be subject to all
applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental
agency as may be required. At the end of the Restricted Period, the Participant will make or enter into such written representations,
warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws and with this Agreement.

 

11.                No
Right to Continued Employment. Neither the Plan nor this Agreement shall be construed as giving the Participant the right to be retained
in any position, as an Employee or Director, with the Company. Further, the Company may at any time dismiss the Participant or discontinue
any relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly provided herein
in this Agreement or the Plan. In addition, nothing herein shall obligate the Company to make future awards to the Participant.

 

12.                No
Impact on Other Benefits. The value of the Participant’s Award is not part of his or her normal or expected compensation for
purposes of calculate any severance, retirement, welfare, insurance or similar employee benefit.

 

13.               Award
Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that: (i) this Award is subject to all
of the terms and conditions set forth in the Plan and this Agreement; and (ii) that the Participant has received and read a copy of the
Plan and understands the terms of the Plan and this Agreement. Capitalized terms not explicitly defined in this Agreement but defined
in the Plan shall have the same meaning as in the Plan.

 

    31 

     

    

 

14.                Beneficiary
Designation. The Participant may file with the Company a written designation of a beneficiary on such form as may be prescribed by
the Company and may, from time to time, amend or revoke such designation (a “Beneficiary). If no Beneficiary is designated, if
the designation is ineffective, or if the Beneficiary dies before the balance of the Participant's benefit is paid, the balance shall
be paid to the Participant's legal spouse, if any, or in the absence of any of the above, to the Participant’s estate. Notwithstanding
the foregoing, however, the Participant's Beneficiary shall be determined under applicable state law if such state law does not recognize
Beneficiary designations under Awards of this type and is not preempted by laws which recognize thy provisions of this Section.

 

15.                Adjustments.
If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the Restricted Shares shall
be adjusted or terminated in any manner as contemplated by the Plan.

 

16.                Non-Transferability.
All Restricted Shares granted under an Award constitute remuneration for personal services. Awards, and the right to any payment in connection
with an Award, shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant in
any respect whatsoever, except that amounts payable under an Award may be paid to a Beneficiary in accordance with the terms of the Plan
and the Award Agreement. Any assignment, alienation, pledge, attachment, transfer, or encumbrance contrary to the foregoing shall be
void.

 

17.                Successors
and Assigns. This Award shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the
Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

18.                Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for
review. The resolution for such dispute by the Committee shall be final and binding on the Participant and the Company.

 

19.                Discretionary
Nature of the Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in the Company’s
sole discretion. The grant of the Award in this Agreement does not create any contractual right or other right to receive any Restricted
Shares or other grants in the future. Future grants, if any, will be at the sole discretion of the Company. Any amendment, modification,
or termination of the Plan shall not constitute a change or impairment of the terms and conditions of Participant’s employment
with the Company.

 

20.               Amendment;
Waiver. The Committee at any time, and from time to time, may amend the terms of this Agreement, provided, however, that the
rights of the Participant shall not be materially adversely affected without the Participant's written consent (except to the extent
permitted under the Plan). No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver
of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.

 

21.                Notice.
Any notice necessary under this Award shall be addressed to the Corporate Secretary of the Company at the Company's principal executive
offices and to the Participant at the address appearing in the personnel records of the Company or to either party at such other address
as such party, hereto, may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof
by the addressee.

 

22.               Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

 

    32 

     

    

 

23.                Headings.
The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction,
and shall not constitute a part, of this Agreement.

 

24.                Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of Texas.

 

25.                Entire
Agreement. This Agreement, the Plan, and the rules and procedures adopted by the Committee, contain all of the provisions applicable
to this Award. No other statements, documents or practices may modify, waive or alter this Agreement unless expressly set forth in writing,
signed by an authorized officer of the Company and delivered to the Participant, and no statements, documents or practices may modify,
waive or alter the Plan except by an amendment to the Plan made in accordance with the terms of the Plan.

 

26.                Signature
in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

 

    33 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	By:	 	 	By:	 

	 	[PARTICIPANT NAME]	 	[SIGNATORY NAME]
	 	 	 	[SIGNATORY TITLE]
	 	 	 	Skyward Specialty Insurance Group, Inc.

 

Award
Details:

[NUMBER]
Restricted Shares

 

    34 

     

    

 

SKYWARD
SPECIALTY INSURANCE GROUP, INC.

LONG-TERM
INCENTIVE PLAN

2021-2023 Restricted Stock Unit Award Agreement

 

THIS AWARD AGREEMENT (this
 "Agreement") is made effective as of the [DAY] day of [MONTH] [YEAR], (the “Grant Date”) by Skyward Specialty Insurance
Group, Inc. a Delaware Corporation (the "Company") and its participating Affiliates, as defined in the Plan, and its terms
are acknowledged and agreed to by [NAME OF PERSON RECEVING AWARD] (the "Participant").

 

 

WHEREAS,
the Board of Directors of the Company (the "Board") has adopted the Skyward Specialty Insurance Group, Inc. Long-Term Incentive
Plan (2020) (as amended and restated from time to time, the "Plan"), which Plan is incorporated herein by reference and made
part of this Agreement;

 

WHEREAS,
any Capitalized terms used in this Agreement, but not defined herein, shall have the meaning as defined in the Plan; and 

 

WHEREAS,
the Compensation Committee of the Board (the "Committee") has decided to grant this award of Restricted Stock Units (the "RSUs"),
to the Participant pursuant to the Plan and the terms set forth herein.

 

NOW
THEREFORE, for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

 

 1.                  Grant of the Restricted Stock Units. Pursuant to Section 8 of the Plan, the Company hereby grants to the Participant an Award of RSUs (this "Award") consisting of, in the aggregate, [NUMBER OF SHARES] RSUs, in consideration for services to be rendered by the Participant to the Company. Each RSU represents the right to receive one Share of common stock. The RSUs shall be credited to a notional account that is separate from the Company’s stock ledger (the “Participant’s Account”), maintained by the Company on the books and records of the Company, and shall be considered the general assets of the Company.

 

2.                  Vesting.
Vesting of RSUs granted pursuant to this Award will occur in accordance with the provisions set forth in Article 8 of the Plan and pursuant
to the following vesting schedule:

 

Vesting Date: January
1, 2024

Number or Percentage
of RSUs: [NUMBER SHARE]

 

To
vest, the Participant must have been and remain continuously employed with the Company from the Grant Date through the Vesting Date(s)
above. Unless and until vested, the Participant shall have no rights to the compensation represented by the RSUs granted pursuant to
this Award, and such RSUs shall be subject to forfeiture as provided herein and in the Plan. The period during which such RSUs are subject
to forfeiture shall be referred to herein as the “Restricted Period.” Once vested, the RSUs become “Vested Units.”

 

3.                  Separation
from Service. The foregoing vesting schedule notwithstanding, if the Participant Separates from Service with the Company prior to
the end of the Restricted Period due to death or Disability, or due to the divestiture or wind-down of a Business Unit, or if Participant
experiences a Double Trigger event, the RSUs will vest in accordance with the terms of the Plan.

 

    35 

     

    

 

Except
as otherwise set forth herein or in the Plan, if the Participant Separates from Service with the Company prior to the end of the Restricted
Period, the Participant shall forfeit any unvested RSUs, and those RSUs shall be cancelled and any unvested RSUs not in the custody or
control of the Company shall be surrendered to the Company. Further, if any vested RSUs have been settled in Shares and there is no public
market for such Shares, the Participant may offer to sell all or any portion of his/her Shares by submitting, at least one year in advance
of sale date, an irrevocable written offer to the CEO to sell a specified number of his/her Shares. If accepted, such Shares will be
purchased by the Company at the Book Value Per Share in effect as of the date that is twelve (12) months following receipt of the request,
with the closing on such repurchase to occur on a date determined by the Committee in its discretion, not to exceed fourteen (14) months
following receipt of the request. 

 

4.                  Settlement.
Upon vesting, the Vested Units will be settled in Shares or, under circumstances provided under this Agreement or Article 8 of the Plan,
for cash, or any combination thereof as the Committee may determine. Settlement shall occur within a reasonable period of time after
the Committee has so certified, but in any event by the 15th day of the third month following the end of the year in which the RSUs are
no longer subject to the substantial risk of forfeiture. The Participant shall not have any rights of a shareholder with respect to the
Shares underlying the RSUs unless and until the RSUs vest and are settled by the issuance of Shares.

 

5.                  Rights
as a Shareholder. Upon and following the settlement of the RSUs in Shares, the Participant shall be the record owner of the Shares
underlying the RSUs unless and until Shares are cancelled or repurchased by the Company or are otherwise transferred pursuant to the
terms of the Shareholder Agreement. As the record owner, the Participant shall be entitled to all rights of a common shareholder of the
Company, including the right to vote. Following the settlement date, the Company shall issue and deliver to Participant the hard-copy
certificate memorializing the number of Shares owned by the Participant.

 

6.                  Shareholder
Agreement. In connection with, and as a condition to the vesting and settlement of the RSUs, the Participant will be required to
become a party to the Company’s shareholder agreement (the "Shareholder Agreement").
The Shareholder Agreement may contain restrictions on the transferability of Shares issued in settlement of Vested Units (such as a right
of first refusal and/or a prohibition on transfer), and such Shares may be subject to tag-along rights and drag-along rights of the Company
and certain of its investors and repurchase rights of the Company, among other provisions, as provided in Section 8.5 of the Plan. 

 

7.                  Dividend
Equivalent Rights. In connection with and as a component of this RSU Award, the Committee hereby further grants Participant a Dividend
Equivalent Right. As such, if, prior to the settlement date of a Vested Unit, the Company declares a cash or stock dividend on its Shares
of common stock, then on the payment date of the dividend, the Participant’s Account shall be credited with dividend equivalents
in the amount equal to the dividends that would have been paid to the Participant if one Share had been issued on the Grant Date for
each RSU granted to the Participant under this Award. Dividend equivalents credited to the Participant’s Account shall be deemed
to be reinvested in additional RSUs (which may thereafter accrue additional Dividend Equivalent Rights). Any such reinvestment shall
be at the Book Value Per Share in effect at the time thereof. Dividend Equivalent Rights may be settled in cash or Shares, or a combination
thereof. Dividend Equivalent Rights shall be settled concurrently with the RSUs to which they relate and shall expire or be forfeited
or annulled under the same conditions as such RSU.

 

    36 

     

    

 

8.                  Legend.
Shares issued in connection with stock settlement of Vested Units shall be subject to such stop transfer orders and other restrictions
as the Committee may deem advisable under the Plan, the Shareholder Agreement, or the rules, regulations, and other requirements of the
Securities and Exchange Commission, any share exchange upon which the Company’s Common Stock are listed, and any applicable federal,
state or foreign laws, and the Committee may cause an appropriate reference to such restrictions to be made in the Company's share transfer
books or on any certificate that may be issued to evidence the Vested Units.

 

9.                  Tax
Withholding. The Company and its participating Affiliates shall have the right to withhold or require separate payment of all federal,
state, local or other taxes or payments with respect to any Award or payment made under the Plan. Such amounts shall be withheld or paid
prior to the delivery of any amount payable under an Award subject to such withholding. To the extent permitted by the Company, such
a payment may be made by a) the delivery of cash to the Company or applicable Affiliate in an amount that equals or exceeds the withholding
obligation of the Company, b) authorizing the Company to withhold from any cash payment made under an Award an amount that equals or
exceeds the withholding obligation of the Company; or c) authorizing the Company to withhold from the RSUs granted under the Award, the
number of RSUs of common stock as are necessary to satisfy the Company’s withholding obligation, valuing such RSUs at Book Value
Per Share. All determinations of withholding liability under this section shall be made by the Company in its sole discretion and shall
be binding upon the Participant and any Beneficiary.

 

Notwithstanding
any action the Company takes with respect to any or all income tax, social security insurance, payroll tax, or other tax-related withholding
(“Tax Related Items”), the ultimate liability for all Tax Related Items is and remains the Participant’s responsibility,
and the Company makes no representations or undertakings regarding the treatment of any Tax Related Items in connection with the grant,
vesting or settlement of the RSUs or the subsequent sale of any Shares. Further, the Company does not commit to structure the RSUs to
reduce or eliminate the Participant’s liability for Tax Related Items. 

 

10.                Section
409A. This Agreement is intended to comply with Section 409A of the Code or an exemption there under and shall be construed and interpreted
in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding
the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section
409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses
that may be incurred by the Participant on account of non-compliance with Section 409A of the Code.

 

11.               Clawback
upon Breach of Non-Solicitation or Confidentiality Covenants. Amounts paid or Shares awarded pursuant to this Agreement are subject
to clawback by the Company pursuant to Section 8.6 of the Plan. The Participant will be required to enter into an agreement with the
Company containing such confidentiality, non-solicitation, and/or other provisions as the Committee may adopt and approve from time to
time. If the Committee determines that the Participant has breached such agreement: (i) all unvested or unsettled RSUs respecting the
Participant will be forfeited; (ii) all Dividend Equivalent Rights and credits granted under Dividend Equivalent Rights shall be forfeited;
(iii) all Shares vested or issued in settlement of RSUs shall immediately be cancelled, and upon cancellation the Participant shall,
within ten (10) days of notice of the Committee’s determination of such breach, surrender any certificates evidencing such Shares
not in the Company’s custody or control and repay all cash payable or paid in settlement of RSUs. These forfeiture and clawback
rights are in addition to, and not in substitution of, any rights of repurchase or other recoupment rights the Company may have.

 

12.                Securities
Laws. The granting of the RSUs and any other obligations of the Company under this Agreement shall be subject to all applicable federal,
provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may
be required.

 

    37 

     

    

 

At the end of the Restricted Period,
the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request
in order to comply with applicable securities laws and with this Agreement.

 

13.                No
Right to Continued Employment. Neither the Plan nor this Agreement shall be construed as giving the Participant the right to be retained
in any position, as an Employee or Director, with the Company. Further, the Company may at any time dismiss the Participant or discontinue
any relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly provided herein
in this Agreement or the Plan. In addition, nothing herein shall obligate the Company to make future awards to the Participant.

 

14.                No
Impact on Other Benefits. The value of the Participant’s Award is not part of his or her normal or expected compensation for
purposes of calculate any severance, retirement, welfare, insurance or similar employee benefit.

 

15.                Award
Subject to Plan. By entering into this Agreement, the Participant agrees and acknowledges that: (i) this Award is subject to all
of the terms and conditions set forth in the Plan and this Agreement; and (ii) the Participant has received and read a copy of the Plan
and understands the terms of the Plan and this Agreement. Capitalized terms not explicitly defined in this Agreement but defined in the
Plan shall have the same meaning as in the Plan.

 

16.                Beneficiary
Designation. The Participant may file with the Company a written designation of a beneficiary on such form as may be prescribed by
the Company and may, from time to time, amend or revoke such designation (a "Beneficiary").
If no Beneficiary is designated, if the designation is ineffective, or if the Beneficiary dies before the balance of the Participant's
benefit is paid, the balance shall be paid to the Participant's legal spouse, if any, or in the absence of any of the above, to the Participant’s
estate. Notwithstanding the foregoing, however, the Participant's Beneficiary shall be determined under applicable state law if such
state law does not recognize Beneficiary designations under Awards of this type and is not preempted by laws which recognize thy provisions
of this Section.

 

17.                Adjustments.
If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the RSUs shall be adjusted
or terminated in any manner as contemplated by the Plan.

 

18.                Non-Transferability.
All amounts payable or RSUs granted under an Award constitute remuneration for personal services. Awards, and the right to payment under
an Award, shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant in any
respect whatsoever, except that amounts payable under an Award may be paid to a Beneficiary in accordance with the terms of the Plan
and the Award Agreement. Any assignment, alienation, pledge, attachment, transfer, or encumbrance contrary to the foregoing shall be
void.

 

19.                 Successors
and Assigns. This Award shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the
Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

 

20.                Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for
review. The resolution for such dispute by the Committee shall be final and binding on the Participant and the Company.

 

    38 

     

    

 

21.                Discretionary
Nature of the Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in the Company’s
sole discretion. The grant of the Award in this Agreement does not create any contractual right or other right to receive any RSUs or
other grants in the future. Future grants, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination
of the Plan shall not constitute a change or impairment of the terms and conditions of Participant’s employment with the Company.

 

22.               Amendment;
Waiver. The Committee at any time, and from time to time, may amend the terms of this Agreement, provided, however, that the
rights of the Participant shall not be materially adversely affected without the Participant's written consent (except to the extent
permitted under the Plan). No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver
of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.

 

23.                Notice.
Any notice necessary under this Award shall be addressed to the Corporate Secretary of the Company at the Company's principal executive
offices and to the Participant at the address appearing in the personnel records of the Company or to either party at such other address
as such party, hereto, may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof
by the addressee.

 

24.                Severability.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

 

25.                Headings.
The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction,
and shall not constitute a part, of this Agreement.

 

26.               
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Texas.

 

27.               Entire
Agreement. This Agreement, the Plan, and the rules and procedures adopted by the Committee, contain all of the provisions applicable
to this Award. No other statements, documents or practices may modify, waive or alter this Agreement unless expressly set forth in writing,
signed by an authorized officer of the Company and delivered to the Participant, and no statements, documents or practices may modify,
waive or alter the Plan except by an amendment to the Plan made in accordance with the terms of the Plan.

 

28.                Signature
in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

 

    39 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	By:	 	 	By:	 

	 	[PARTICIPANT NAME]	 	[SIGNATORY NAME]
	 	 	 	[SIGNATORY TITLE]
	 	 	 	Skyward Specialty Insurance Group, Inc.

 

Award
Details:

[NUMBER]
of Restricted Stock Units

 

    40Exhibit 10.4

 

SKYWARD SPECIALTY INSURANCE GROUP, INC.

2022 LONG-TERM INCENTIVE PLAN

 

     

     

    

 

TABLE OF CONTENTS

 

		1.	History; Existence of the Plan	1

 

		2.	Purposes of the Plan	1

 

		3.	Terminology	1

 

		4.	Administration	1

 

		(a)	Administration of the Plan	1

 

		(b)	Powers of the Administrator	1

 

		(c)	Delegation of Administrative Authority	3

 

		(d)	Non-Uniform Determinations	3

 

		(e)	Limited Liability; Advisors	3

 

		(f)	Indemnification	3

 

		(g)	Effect of Administrator’s Decision	3

 

		5.	Shares Issuable Pursuant to Awards	3

 

		(a)	Initial Share Pool	3

 

		(b)	Adjustments to Share Pool	3

 

		(c)	ISO Limit	4

 

		(d)	Source of Shares	4

 

		(e)	Non-Employee Director Award Limit	4

 

		6.	Participation	5

 

		7.	Awards	5

 

		(a)	Awards, In General	5

 

		(b)	Stock Options	5

 

		(c)	Limitation on Reload Options	5

 

		(d)	Stock Appreciation Rights	5

 

		(e)	Repricing	6

 

		(f)	Stock Awards	6

 

		(g)	Stock Units	7

 

		(h)	Performance Shares and Performance Units	8

 

		(i)	Other Stock-Based Awards	9

 

		(j)	Awards to Participants Outside the United States	9

 

		(k)	Limitation on Dividend Reinvestment and Dividend Equivalents	9

 

		8.	Withholding of Taxes	9

 

		9.	Transferability of Awards	10

 

		(a)	General Nontransferability Absent Administrator Permission	10

 

		(b)	Administrator Discretion to Permit Transfers Other Than For Value	10

 

		10.	Adjustments for Corporate Transactions and Other Events	10

 

		(a)	Mandatory Adjustments	10

 

		(b)	Discretionary Adjustments	10

 

		(c)	Adjustments to Performance Goals	11

 

    i

     

    

 

		(d)	Statutory Requirements Affecting Adjustments	11

 

		(e)	Dissolution or Liquidation	11

 

		11.	Change in Control Provisions	11

 

		(a)	Termination of Awards	11

 

		(b)	Continuation, Assumption or Substitution of Awards	12

 

		(c)	Other Permitted Actions	12

 

		(d)	Section 409A Savings Clause	12

 

		12.	Substitution of Awards in Mergers and Acquisitions	12

 

		13.	Compliance with Securities Laws; Listing and Registration	13

 

		14.	Section 409A Compliance	13

 

		15.	Plan Duration; Amendment and Discontinuance	14

 

		(a)	Plan Duration	14

 

		(b)	Amendment and Discontinuance of the Plan	14

 

		(c)	Amendment of Awards	14

 

		16.	General Provisions	15

 

		(a)	Non-Guarantee of Employment or Service	15

 

		(b)	No Trust or Fund Created	15

 

		(c)	Status of Awards	15

 

		(d)	Subsidiary Employees	15

 

		(e)	Governing Law and Interpretation	15

 

		(f)	Use of English Language	15

 

		(g)	Recovery of Amounts Paid	15

 

		17.	Glossary	16

 

    ii

     

    

 

1.             History;
Existence of the Plan.

 

SKYWARD SPECIALTY INSURANCE GROUP, INC., a
Delaware corporation (“Skyward Specialty”), has established the SKYWARD SPECIALTY INSURANCE GROUP, INC. 2022 LONG-TERM
INCENTIVE PLAN, as set forth herein, and as the same may be amended from time to time (the “Plan”). The Plan will come
into existence on the Effective Date; provided, however, that no Award may be granted prior to the IPO Date. In addition, no Award
will be exercised (or, in the case of Restricted Stock, Restricted Stock Units, Performance Shares, or Other Stock-Based Awards, no Award
will be granted) and no Performance Units will be settled unless and until the Plan has been approved by the shareholders of Skyward Specialty,
which approval will be within 12 months after the date the Plan is adopted by the Board of Directors of Skyward Specialty (the “Board”).

 

On the Effective Date, the outstanding awards under
the Skyward Specialty Insurance Group, Inc. Long-Term Incentive Plan (the “Prior Plan”) will remain subject to
the same terms and conditions set forth in the Prior Plan and related agreements.

 

No awards will be made under the Prior Plan on
or after the Effective Date.

 

2.             Purposes
of the Plan.

 

The Plan is designed to:

 

(a)            promote
the long-term financial interests and growth of Skyward Specialty and its Subsidiaries (together, the “Company”) by
attracting and retaining management and other personnel of Skyward Specialty and other Eligible Individuals.

 

(b)            motivate
management personnel by means of growth-related incentives to achieve long-range goals; and

 

(c)            further
the alignment of interests of Participants with those of the stockholders of Skyward Specialty through opportunities for increased stock
or stock-based ownership in Skyward Specialty.

 

Toward these objectives, the Administrator may
grant stock options, stock appreciation rights, stock awards, stock units, performance shares, performance units, and other stock-based
awards to eligible individuals on the terms and subject to the conditions set forth in the Plan.

 

3.             Terminology.

 

Except as otherwise specifically provided in an
Award Agreement, capitalized words and phrases used in the Plan or an Award Agreement shall have the meaning set forth in the glossary
at Section 17 of the Plan or as defined the first place such word or phrase appears in the Plan.

 

4.             Administration.

 

(a)            Administration
of the Plan. The Plan shall be administered by the Administrator.

 

(b)           Powers
of the Administrator. The Administrator shall, except as otherwise provided under the Plan, have plenary authority, in its sole and
absolute discretion, to grant Awards pursuant to the terms of the Plan to Eligible Individuals and to take all other actions necessary
or desirable to carry out the purpose and intent of the Plan. Among other things, the Administrator shall have the authority, in its sole
and absolute discretion, subject to the terms and conditions of the Plan to:

 

(i)            determine
the Eligible Individuals to whom, and the time or times at which, Awards shall be granted;

 

(ii)           determine
the types of Awards to be granted any Eligible Individual;

 

(iii)          determine
the number of shares of Common Stock to be covered by or used for reference purposes for each Award or the value to be transferred pursuant
to any Award;

 

    1

     

    

 

(iv)          determine
the terms, conditions and restrictions applicable to each Award (which need not be identical) and any shares acquired pursuant thereto,
including, without limitation, (A) the purchase price of any shares of Common Stock, (B) the method of payment for shares purchased
pursuant to any Award, (C) the method for satisfying any tax withholding obligation arising in connection with any Award, including
by the withholding or delivery of shares of Common Stock, (D) the timing, terms and conditions of the exercisability, vesting or
payout of any Award or any shares acquired pursuant thereto, (E) the Performance Goals applicable to any Award and the extent to
which such Performance Goals have been attained, (F) the time of the expiration of any Award, (G) the effect of the Participant’s
Termination of Service on any of the foregoing, and (H) all other terms, conditions and restrictions applicable to any Award or shares
acquired pursuant thereto as the Administrator shall consider to be appropriate and not inconsistent with the terms of the Plan;

 

(v)           subject
to Sections 7(e), 10(c) and 15, modify, amend or adjust the terms and conditions of any Award;

 

(vi)          accelerate
or otherwise change the time at or during which an Award may be exercised or becomes payable and waive or accelerate the lapse, in whole
or in part, of any restriction, condition or risk of forfeiture with respect to such Award; provided, however, that, except
in connection with death, disability or a Change in Control, no such change, waiver or acceleration to any Award that is considered “deferred
compensation” within the meaning of Section 409A of the Code if the effect of such action is inconsistent with Section 409A
of the Code;

 

(vii)         determine
whether an Award will be paid or settled in cash, shares of Common Stock, or in any combination thereof and whether, to what extent and
under what circumstances cash or shares of Common Stock payable with respect to an Award shall be deferred either automatically or at
the election of the Participant;

 

(viii)        for
any purpose, including but not limited to, qualifying for preferred or beneficial tax treatment, accommodating the customs or administrative
challenges or otherwise complying with the tax, accounting or regulatory requirements of one or more jurisdictions, adopt, amend, modify,
administer or terminate sub-plans, appendices, special provisions or supplements applicable to Awards regulated by the laws of a particular
jurisdiction, which sub-plans, appendices, supplements and special provisions may take precedence over other provisions of the Plan, and
prescribe, amend and rescind rules and regulations relating to such sub-plans, supplements and special provisions;

 

(ix)          establish
any “blackout” period, during which transactions affecting Awards may not be effectuated, that the Administrator in its sole
discretion deems necessary or advisable;

 

(x)            determine
the Fair Market Value of shares of Common Stock or other property for any purpose under the Plan or any Award;

 

(xi)           administer,
construe and interpret the Plan, Award Agreements and all other documents relevant to the Plan and Awards issued thereunder, and decide
all other matters to be determined in connection with an Award;

 

(xii)          establish,
amend, rescind and interpret such administrative rules, regulations, agreements, guidelines, instruments and practices for the administration
of the Plan and for the conduct of its business as the Administrator deems necessary or advisable;

 

(xiii)         correct
any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award or Award Agreement in the manner and to the
extent the Administrator shall consider it desirable to carry it into effect; and

 

(xiv)        otherwise
administer the Plan and all Awards granted under the Plan.

 

    2

     

    

 

(c)            Delegation
of Administrative Authority. The Administrator may designate officers or employees of the Company to assist the Administrator in the
administration of the Plan and, to the extent permitted by applicable law and stock exchange rules, the Administrator may delegate to
officers or other employees of the Company the Administrator’s duties and powers under the Plan, subject to such conditions and
limitations as the Administrator shall prescribe, including without limitation the authority to execute agreements or other documents
on behalf of the Administrator; provided, however, that such delegation of authority shall not extend to the granting of, or exercise
of discretion with respect to, Awards to Eligible Individuals who are officers under Section 16 of the Exchange Act.

 

(d)           Non-Uniform
Determinations. The Administrator’s determinations under the Plan (including without limitation, determinations of the persons
to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Award Agreements evidencing
such Awards, and the ramifications of a Change in Control upon outstanding Awards) need not be uniform and may be made by the Administrator
selectively among Awards or persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly
situated.

 

(e)            Limited
Liability; Advisors. To the maximum extent permitted by law, no member of the Administrator, nor any director, officer, employee or
representative of Skyward Specialty shall be liable for any action taken or decision made in good faith relating to the Plan or any Award
thereunder. The Administrator may employ counsel, consultants, accountants, appraisers, brokers or other persons. The Administrator, Skyward
Specialty and the officers and directors Skyward Specialty shall be entitled to rely upon the advice, opinions or valuations of any such
persons.

 

(f)            Indemnification.
To the maximum extent permitted by law, by Skyward Specialty’s charter and by-laws, and by any directors’ and officers’
liability insurance coverage which may be in effect from time to time, the members of the Administrator and any agent or delegate of the
Administrator who is a director, officer or employee of Skyward Specialty or an Affiliate shall be indemnified by Skyward Specialty against
any and all liabilities and expenses to which they may be subjected by reason of any act or failure to act with respect to their duties
on behalf of the Plan.

 

(g)           Effect
of Administrator’s Decision. All actions taken and determinations made by the Administrator on all matters relating to the Plan
or any Award pursuant to the powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion, unless
in contravention of any express term of the Plan, including, without limitation, any determination involving the appropriateness or equitableness
of any action. All determinations made by the Administrator shall be conclusive, final and binding on all parties concerned, including
Skyward Specialty, any Participants and any other employee, or director of Skyward Specialty and its Affiliates, and their respective
successors in interest. No member of the Administrator, nor any director, officer, employee or representative of Skyward Specialty shall
be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or Awards.

 

5.             Shares
Issuable Pursuant to Awards.

 

(a)            Initial
Share Pool. Subject to adjustments as provided in Section 10 of the Plan, the number of shares of Common Stock issuable pursuant
to Awards that may be granted under the Plan shall equal [______]1
(the “Share Pool”).

 

(b)           Adjustments
to Share Pool. On and after the Effective Date, the Share Pool shall be adjusted, in addition to any adjustments to be made pursuant
to Section 10 of the Plan, as follows:

 

(i)             The
Share Pool shall be increased automatically, without further action of the Board, on January 1st of each calendar year commencing
after the Effective Date and ending on (and including) January 1, 2032, by a number of shares of Common Stock equal to the lesser
of (A) two percent (2%) of the aggregate number of shares of Common Stock outstanding on December 31st of the immediately preceding
calendar year, excluding for this purpose any such outstanding shares of Common Stock that were granted under this Plan and remain unvested
and subject to forfeiture as of the relevant December 31st, or (B) a lesser number of shares of Common Stock determined by the
Board or Compensation Committee prior to the relevant January 1st.

 

 

1 This number shall equal 8.5% of the issued and outstanding
shares of Common Stock upon the completion of the Initial Public Offering (on a fully-diluted basis).

 

    3

     

    

 

(ii)           The
Share Pool shall be reduced, on the date of grant, by one share for each share of Common Stock made subject to an Award granted under
the Plan;

 

(iii)           The
Share Pool shall be increased, on the relevant date, by the number of unissued shares of Common Stock underlying or used as a reference
measure for any Award or portion of an Award that is cancelled, forfeited, expired, terminated, unearned or settled in cash, in any such
case without the issuance of shares and by the number of shares of Common Stock used as a reference measure for any Award that are not
issued upon settlement of such Award either due to a net settlement or otherwise;

 

(iv)          The
Share Pool shall be increased, on the forfeiture date, by the number of shares of Common Stock that are forfeited back to Skyward Specialty
after issuance due to a failure to meet an Award contingency or condition with respect to any Award or portion of an Award;

 

(v)           The
Share Pool shall be increased, on the exercise date, by the number of shares of Common Stock withheld by or surrendered (either actually
or through attestation) to Skyward Specialty in payment of the exercise price of any Award; and

 

(vi)          The
Share Pool shall be increased, on the relevant date, by the number of shares of Common Stock withheld by or surrendered (either actually
or through attestation) to the Company in payment of the Tax Withholding Obligation that arises in connection with any Award.

 

For the avoidance of doubt, the Share Pool will not be increased to
include any shares of Common Stock issuable upon exercise of options or the vesting of any type of award granted under the Prior Plan
that (i) expire or terminate without having been exercised in full or (ii) is otherwise cancelled, forfeited, expired, terminated
or unearned in whole or in part.

 

(c)           ISO
Limit. Subject to adjustment pursuant to Section 10 of the Plan, the maximum number of shares of Common Stock that may be issued
pursuant to stock options granted under the Plan that are intended to qualify as Incentive Stock Options within the meaning of Section 422
of the Code shall be equal to [_________].2

 

(d)           Source
of Shares. The shares of Common Stock with respect to which Awards may be made under the Plan shall be shares authorized for issuance
under Skyward Specialty’s charter but unissued, or issued and reacquired, including without limitation shares purchased in the open
market or in private transactions.

 

(e)            Non-Employee
Director Award Limit. In addition, the Administrator may establish compensation for Non-Employee Directors from time to time, subject
to the limitations in the Plan. The Administrator will from time to time determine the terms, conditions and amounts of all such Non-Employee
Director compensation in its discretion and pursuant to the exercise of its business judgment, taking into account such factors, circumstances
and considerations as it shall deem relevant from time to time, provided that the sum of any cash compensation and the grant date fair
value of Awards (as determined in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, or
any successor thereto) granted under the Plan to a Non-Employee Director as compensation for services as a Non-Employee Director during
any calendar year of the Company may not exceed $750,000 (such limit, the “Director Limit”). The Administrator may
make exceptions to this limit for individual Non-Employee directors in extraordinary circumstances, as the Administrator may determine
in its discretion, provided that the Non-Employee Director receiving such additional compensation may not participate in the decision
to award such compensation or in other compensation decisions involving Non-Employee Director.

 

 

2
This number shall be equal to the Initial Share Pool in Section 5(a).

 

    4

     

    

 

6.             Participation.

 

Participation in the Plan shall be open to all
Eligible Individuals, as may be selected by the Administrator from time to time. The Administrator may also grant Awards to Eligible Individuals
in connection with hiring, recruiting or otherwise, prior to the date the individual first performs services for Skyward Specialty or
an Affiliate; provided, however, that such Awards shall not become vested or exercisable and no shares shall be issued to such
individual, prior to the date the individual first commences performance of such services.

 

7.             Awards.

 

(a)            Awards, In
General. The Administrator, in its sole discretion, shall establish the terms of all Awards granted under the Plan consistent with
the terms of the Plan. Awards may be granted individually or in tandem with other types of Awards, concurrently with or with respect to
outstanding Awards. All Awards are subject to the terms and conditions provided in the Award Agreement, which shall be delivered to the
Participant receiving such Award upon, or as promptly as is reasonably practicable following, the grant of such Award. Unless otherwise
specified by the Administrator, in its sole discretion, or otherwise provided in the Award Agreement, an Award shall not be effective
unless the Award Agreement is signed or otherwise accepted by Skyward Specialty and the Participant receiving the Award (including by
electronic delivery and/or electronic signature).

 

(b)           Stock
Options.

 

(i)             Grants.
A stock option means a right to purchase a specified number of shares of Common Stock from Skyward Specialty at a specified price during
a specified period of time. The Administrator may from time to time grant to Eligible Individuals Awards of Incentive Stock Options or
Nonqualified Options; provided, however, that Awards of Incentive Stock Options shall be limited to employees of Skyward
Specialty or of any current or hereafter existing “parent corporation” or “subsidiary corporation,” as defined
in Sections 424(e) and 424(f) of the Code, respectively, of Skyward Specialty, and any other Eligible Individuals who are eligible
to receive Incentive Stock Options under the provisions of Section 422 of the Code. No stock option shall be an Incentive Stock Option
unless so designated by the Administrator at the time of grant or in the applicable Award Agreement.

 

(ii)            Exercise.
Stock options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator;
provided, however, that Awards of stock options may not have a term in excess of ten years’ duration unless required otherwise
by applicable law.

 

(iii)           Termination
of Service. Except as provided in the applicable Award Agreement or otherwise determined by the Administrator, to the extent stock
options are not vested and exercisable, a Participant’s stock options shall be forfeited upon his or her Termination of Service.

 

(iv)           Additional
Terms and Conditions. The Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions,
and/or limitations, if any, of any Award of stock options, provided they are not inconsistent with the Plan.

 

(c)            Limitation
on Reload Options. The Administrator shall not grant stock options under this Plan that contain a reload or replenishment feature
pursuant to which a new stock option would be granted automatically upon receipt of delivery of Common Stock to Skyward Specialty in payment
of the exercise price or any tax withholding obligation under any other stock option.

 

(d)           Stock
Appreciation Rights.

 

(i)             Grants.
The Administrator may from time to time grant to Eligible Individuals Awards of stock appreciation rights. A stock appreciation right
entitles the Participant to receive, subject to the provisions of the Plan and the Award Agreement, a payment having an aggregate value
equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one share of Common Stock over (B) the
base price per share specified in the Award Agreement, times (ii) the number of shares specified by the stock appreciation right,
or portion thereof, which is exercised. The base price per share specified in the Award Agreement shall not be less than the lower of
the Fair Market Value on the date of grant or the exercise price of any tandem stock option to which the stock appreciation right is related,
or with respect to stock appreciation rights that are granted in substitution of similar types of awards of a company acquired by Skyward
Specialty or a Subsidiary or with which Skyward Specialty or a Subsidiary combines (whether in connection with a corporate transaction,
such as a merger, combination, consolidation or acquisition of property or stock, or otherwise) such base price as is necessary to preserve
the intrinsic value of such awards.

 

    5

     

    

 

(ii)            Exercise.
Stock appreciation rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by
the Administrator; provided, however, that stock appreciation rights granted under the Plan may not have a term in excess of ten
years’ duration unless required otherwise by applicable law. The applicable Award Agreement shall specify whether payment by Skyward
Specialty of the amount receivable upon any exercise of a stock appreciation right is to be made in cash or shares of Common Stock or
a combination of both, or shall reserve to the Administrator or the Participant the right to make that determination prior to or upon
the exercise of the stock appreciation right. If upon the exercise of a stock appreciation right a Participant is to receive a portion
of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value
of a share of Common Stock on the exercise date. No fractional shares shall be used for such payment and the Administrator shall determine
whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated.

 

(iii)           Termination
of Service. Except as provided in the applicable Award Agreement or otherwise determined by the Administrator, to the extent stock
appreciation rights are not vested and exercisable, a Participant’s stock appreciation rights shall be forfeited upon his or her
Termination of Service.

 

(iv)           Additional
Terms and Conditions. The Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions,
and/or limitations, if any, of any Award of stock appreciation rights, provided they are not inconsistent with the Plan.

 

(e)            Repricing.
Notwithstanding anything herein to the contrary, except in connection with a corporate transaction involving Skyward Specialty (including,
without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, or exchange of shares), the terms of options and stock appreciation rights granted under the Plan may
not be amended, after the date of grant, to reduce the exercise price of such options or stock appreciation rights, nor may outstanding
options or stock appreciation rights be canceled in exchange for (i) cash, (ii) options or stock appreciation rights with an
exercise price or base price that is less than the exercise price or base price of the original outstanding options or stock appreciation
rights, or (iii) other Awards, unless such action is approved by Skyward Specialty’s stockholders.

 

(f)             Stock
Awards.

 

(i)             Grants.
The Administrator may from time to time grant to Eligible Individuals Awards of unrestricted Common Stock or Restricted Stock (collectively,
 “Stock Awards”) on such terms and conditions, and for such consideration, including no consideration or such minimum
consideration as the Administrator shall determine, subject to the limitations set forth in Section 7(b). Stock Awards shall be evidenced
in such manner as the Administrator may deem appropriate, including via book-entry registration.

 

(ii)            Vesting.
Restricted Stock shall be subject to such vesting, restrictions on transferability and other restrictions, if any, and/or risk of forfeiture
as the Administrator may impose at the date of grant or thereafter. The Restriction Period to which such vesting, restrictions and/or
risk of forfeiture apply may lapse under such circumstances, including without limitation upon the attainment of Performance Goals, in
such installments, or otherwise, as the Administrator may determine. Subject to the provisions of the Plan and the applicable Award Agreement,
during the Restriction Period, the Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber shares of
Restricted Stock.

 

    6

     

    

 

(iii)          Rights
of a Stockholder; Dividends. Except to the extent restricted under the Award Agreement relating to the Restricted Stock, a Participant
granted Restricted Stock shall have all of the rights of a stockholder of Common Stock including, without limitation, the right to vote
Restricted Stock. Cash dividends declared payable on Common Stock shall be paid, with respect to outstanding Restricted Stock, either
as soon as practicable following the dividend payment date or deferred for payment to such later date as determined by the Administrator,
and shall be paid in cash or as unrestricted shares of Common Stock having a Fair Market Value equal to the amount of such dividends or
may be reinvested in additional shares of Restricted Stock as determined by the Administrator; provided, however, that dividends
declared payable on Restricted Stock that is granted as a Performance Award shall be held by Skyward Specialty and made subject to forfeiture
at least until achievement of the applicable Performance Goal related to such shares of Restricted Stock. Stock distributed in connection
with a stock split or stock dividend, and other property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture
to the same extent as the Restricted Stock with respect to which such Common Stock or other property has been distributed. As soon as
is practicable following the date on which restrictions on any shares of Restricted Stock lapse, Skyward Specialty shall deliver to the
Participant the certificates for such shares or shall cause the shares to be registered in the Participant’s name in book-entry
form, in either case with the restrictions removed, provided that the Participant shall have complied with all conditions for delivery
of such shares contained in the Award Agreement or otherwise reasonably required by Skyward Specialty.

 

(iv)          Termination
of Service. Except as provided in the applicable Award Agreement, upon Termination of Service during the applicable Restriction Period,
Restricted Stock and any accrued but unpaid dividends that are at that time subject to restrictions shall be forfeited; provided that
the Administrator may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case, that restrictions
or forfeiture conditions relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified
causes, and the Administrator may in other cases waive in whole or in part the forfeiture of Restricted Stock.

 

(v)           Additional
Terms and Conditions. The Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions,
and/or limitations, if any, of any Award of Restricted Stock, provided they are not inconsistent with the Plan.

 

(g)           Stock
Units.

 

(i)             Grants.
The Administrator may from time to time grant to Eligible Individuals Awards of unrestricted stock Units or Restricted Stock Units on
such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by
law, as the Administrator shall determine, subject to the limitations set forth in Section 7(b). Restricted Stock Units represent
a contractual obligation by Skyward Specialty to deliver a number of shares of Common Stock, an amount in cash equal to the Fair Market
Value of the specified number of shares subject to the Award, or a combination of shares of Common Stock and cash, in accordance with
the terms and conditions set forth in the Plan and any applicable Award Agreement.

 

(ii)            Vesting
and Payment. Restricted Stock Units shall be subject to such vesting, risk of forfeiture and/or payment provisions as the Administrator
may impose at the date of grant. The Restriction Period to which such vesting and/or risk of forfeiture apply may lapse under such circumstances,
including without limitation upon the attainment of Performance Goals, in such installments, or otherwise, as the Administrator may determine.
Shares of Common Stock, cash or a combination of shares of Common Stock and cash, as applicable, payable in settlement of Restricted Stock
Units shall be delivered to the Participant as soon as administratively practicable, but no later than 30 days, after the date on which
payment is due under the terms of the Award Agreement provided that the Participant shall have complied with all conditions for
delivery of such shares or payment contained in the Award Agreement or otherwise reasonably required by Skyward Specialty, or in accordance
with an election of the Participant, if the Administrator so permits, that meets the requirements of Section 409A of the Code.

 

(iii)           No
Rights of a Stockholder; Dividend Equivalents. Until shares of Common Stock are issued to the Participant in settlement of stock Units,
the Participant shall not have any rights of a stockholder of Skyward Specialty with respect to the stock Units or the shares issuable
thereunder. The Administrator may grant to the Participant the right to receive Dividend Equivalents on stock Units, on a current, reinvested
and/or restricted basis, subject to such terms as the Administrator may determine provided, however, that Dividend Equivalents
payable on stock Units that are granted as a Performance Award shall, rather than be paid on a current basis, be accrued and made subject
to forfeiture at least until achievement of the applicable Performance Goal related to such stock Units.

 

    7

     

    

 

(iv)          Termination
of Service. Upon Termination of Service during the applicable deferral period or portion thereof to which forfeiture conditions apply,
or upon failure to satisfy any other conditions precedent to the delivery of shares of Common Stock or cash to which such Restricted Stock
Units relate, all Restricted Stock Units and any accrued but unpaid Dividend Equivalents with respect to such Restricted Stock Units that
are then subject to deferral or restriction shall be forfeited; provided that the Administrator may provide, by rule or regulation
or in any Award Agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Restricted
Stock Units will be waived in whole or in part in the event of termination resulting from specified causes, and the Administrator may
in other cases waive in whole or in part the forfeiture of Restricted Stock Units.

 

(v)           Additional
Terms and Conditions. The Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions,
and/or limitations, if any, of any Award of stock Units, provided they are not inconsistent with the Plan.

 

(h)           Performance
Shares and Performance Units.

 

(i)             Grants.
The Administrator may from time to time grant to Eligible Individuals Awards in the form of Performance Shares and Performance Units.
Performance Shares, as that term is used in this Plan, shall refer to shares of Common Stock or Units that are expressed in terms of Common
Stock, the issuance, vesting, lapse of restrictions on or payment of which is contingent on performance as measured against predetermined
objectives over a specified Performance Period. Performance Units, as that term is used in this Plan, shall refer to dollar-denominated
Units valued by reference to designated criteria established by the Administrator, other than Common Stock, the issuance, vesting, lapse
of restrictions on or payment of which is contingent on performance as measured against predetermined objectives over a specified Performance
Period. The applicable Award Agreement shall specify whether Performance Shares and Performance Units will be settled or paid in cash
or shares of Common Stock or a combination of both, or shall reserve to the Administrator or the Participant the right to make that determination
prior to or at the payment or settlement date.

 

(ii)            Performance
Criteria. The Administrator shall, prior to or at the time of grant, condition the grant, vesting or payment of, or lapse of restrictions
on, an Award of Performance Shares or Performance Units upon (A) the attainment of Performance Goals during a Performance Period
or (B) the attainment of Performance Goals and the continued service of the Participant. The length of the Performance Period, the
Performance Goals to be achieved during the Performance Period, and the measure of whether and to what degree such Performance Goals have
been attained shall be conclusively determined by the Administrator in the exercise of its absolute discretion. Performance Goals may
include minimum, maximum and target levels of performance, with the size of the Award or payout of Performance Shares or Performance Units
or the vesting or lapse of restrictions with respect thereto based on the level attained. Performance Goals may be applied on a per share
or absolute basis and relative to one or more Performance Metrics, or any combination thereof, and may be measured pursuant to U.S. generally
accepted accounting principles (“GAAP”), non-GAAP or other objective standards in a manner consistent with Skyward Specialty’s
or its Subsidiary’s established accounting policies, all as the Administrator shall determine at the time the Performance Goals
for a Performance Period are established. The Administrator may, in its sole discretion, provide that one or more objectively determinable
adjustments shall be made to the manner in which one or more of the Performance Goals is to be calculated or measured to take into account,
or ignore, one or more of the following: (1) items related to a change in accounting principle; (2) items relating to financing
activities; (3) expenses for restructuring or productivity initiatives; (4) other non-operating items; (5) items related
to acquisitions; (6) items attributable to the business operations of any entity acquired by the Company during the Performance Period;
(7) items related to the sale or disposition of a business or segment of a business; (8) items related to discontinued operations
that do not qualify as a segment of a business under U.S. generally accepted accounting principles; (9) items attributable to any
stock dividend, stock split, combination or exchange of stock occurring during the Performance Period; (10) any other items of significant
income or expense which are determined to be appropriate adjustments; (11) items relating to unusual or extraordinary corporate transactions,
events or developments, (12) items related to amortization of acquired intangible assets; (13) items that are outside the scope of the
Company’s core, on-going business activities; (14) changes in foreign currency exchange rates; (15) items relating to changes in
tax laws; (16) certain identified expenses (including, but not limited to, cash bonus expenses, incentive expenses and acquisition-related
transaction and integration expenses); (17) items relating to asset impairment charges; (18) items relating to gains or unusual or nonrecurring
events or changes in applicable law, accounting principles or business conditions, or (19) or any other items selected by the Administrator.
Shares or Performance Units shall be settled as and when the Award vests or at a later time specified in the Award Agreement or in accordance
with an election of the Participant, if the Administrator so permits, that meets the requirements of Section 409A of the Code.

 

    8

     

    

 

(iii)           Additional
Terms and Conditions. The Administrator may, by way of the Award Agreement or otherwise, determine such other terms, conditions, restrictions,
and/or limitations, if any, of any Award of Performance Shares or Performance Units, provided they are not inconsistent with the
Plan.

 

(i)             Other
Stock-Based Awards. The Administrator may from time to time grant to Eligible Individuals Awards in the form of Other Stock-Based
Awards. Other Stock-Based Awards in the form of Dividend Equivalents may be (A) awarded on a free-standing basis or in connection
with another Award other than a stock option or stock appreciation right, (B) paid currently or credited to an account for the Participant,
including the reinvestment of such credited amounts in Common Stock equivalents, to be paid on a deferred basis, and (C) settled
in cash or Common Stock as determined by the Administrator; provided, however, that Dividend Equivalents payable on Other
Stock-Based Awards that are granted as a Performance Award shall, rather than be paid on a current basis, be accrued and made subject
to forfeiture at least until achievement of the applicable Performance Goal related to such Other Stock- Based Awards. Any such settlements,
and any such crediting of Dividend Equivalents, may be subject to such conditions, restrictions and contingencies as the Administrator
shall establish.

 

(j)             Awards
to Participants Outside the United States. The Administrator may grant Awards to Eligible Individuals who are foreign nationals, who
are located outside the United States or who are not compensated from a payroll maintained in the United States, or who are otherwise
subject to (or could cause Skyward Specialty or a Subsidiary to be subject to) tax, legal or regulatory provisions of countries or jurisdictions
outside the United States, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Administrator,
be necessary or desirable in order that any such Award shall conform to laws, regulations, and customs of the country or jurisdiction
in which the Participant is then resident or primarily employed or to foster and promote achievement of the purposes of the Plan.

 

(k)            Limitation
on Dividend Reinvestment and Dividend Equivalents. Reinvestment of dividends in additional Restricted Stock at the time of any dividend
payment, and the payment of shares of Common Stock with respect to dividends to Participants holding Awards of stock Units, shall only
be permissible if sufficient shares are available under the Share Pool for such reinvestment or payment (taking into account then outstanding
Awards). In the event that sufficient shares are not available under the Share Pool for such reinvestment or payment, such reinvestment
or payment shall be made in the form of a grant of stock Units equal in number to the shares of Common Stock that would have been obtained
by such payment or reinvestment, the terms of which stock Units shall provide for settlement in cash and for Dividend Equivalent reinvestment
in further stock Units on the terms contemplated by this Section 7(k).

 

8.             Withholding
of Taxes.

 

Participants and holders of Awards shall pay to
Skyward Specialty or its Affiliate, or make arrangements satisfactory to the Administrator for payment of, any Tax Withholding Obligation
in respect of Awards granted under the Plan no later than the date of the event creating the tax or social insurance contribution liability.
The obligations of Skyward Specialty under the Plan shall be conditional on such payment or arrangements. Unless otherwise determined
by the Administrator, Tax Withholding Obligations may be settled in whole or in part with shares of Common Stock, including unrestricted
outstanding shares surrendered to Skyward Specialty and unrestricted shares that are part of the Award that gives rise to the Tax Withholding
Obligation, having a Fair Market Value on the date of surrender or withholding equal to the statutory minimum amount (or such greater
amount permitted under FASB Accounting Standards Codification Topic 718, Compensation—Stock Compensation, for equity-classified
awards) required to be withheld for tax or social insurance contribution purposes, all in accordance with such procedures as the Administrator
establishes. Skyward Specialty or its Affiliate may deduct, to the extent permitted by law, any such Tax Withholding Obligations from
any payment of any kind otherwise due to the Participant or holder of an Award.

 

    9

     

    

 

9.             Transferability
of Awards.

 

(a)            General
Nontransferability Absent Administrator Permission. Except as otherwise determined by the Administrator, and in any event in the case
of an Incentive Stock Option or a tandem stock appreciation right granted with respect to an Incentive Stock Option, no Award granted
under the Plan shall be transferable by a Participant otherwise than by will or the laws of descent and distribution. The Administrator
shall not permit any transfer of an Award for value. An Award may be exercised during the lifetime of the Participant, only by the Participant
or, during the period the Participant is under a legal disability, by the Participant’s guardian or legal representative, unless
otherwise determined by the Administrator. Awards granted under the Plan shall not be subject in any manner to alienation, anticipation,
sale, transfer, assignment, pledge, or encumbrance, except as otherwise determined by the Administrator; provided, however, that
the restrictions in this sentence shall not apply to the shares of Common Stock received in connection with an Award after the date that
the restrictions on transferability of such shares set forth in the applicable Award Agreement have lapsed. Nothing in this paragraph
shall be interpreted or construed as overriding the terms of any Skyward Specialty stock ownership or retention policy, now or hereafter
existing, that may apply to the Participant or shares of Common Stock received under an Award.

 

(b)            Administrator
Discretion to Permit Transfers Other Than For Value. Except as otherwise restricted by applicable law, the Administrator may, but
need not, permit an Award, other than an Incentive Stock Option or a tandem stock appreciation right granted with respect to an Incentive
Stock Option, to be transferred to a Participant’s Family Member (as defined below) as a gift or pursuant to a domestic relations
order in settlement of marital property rights. The Administrator shall not permit any transfer of an Award for value. For purposes of
this Section 9, “Family Member” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, any person sharing the Participant’s household (other than a tenant or employee), a trust in which these
persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Participant) control the
management of assets, and any other entity in which these persons (or the Participant) own more than fifty percent (50%) of the voting
interests. The following transactions are not prohibited transfers for value: (i) a transfer under a domestic relations order in
settlement of marital property rights; and (ii) a transfer to an entity in which more than fifty percent of the voting interests
are owned by Family Members (or the Participant) in exchange for an interest in that entity.

 

10.           Adjustments
for Corporate Transactions and Other Events.

 

(a)            Mandatory
Adjustments. In the event of a merger, consolidation, stock rights offering, statutory share exchange or similar event affecting Skyward
Specialty (each, a “Corporate Event”) or a stock dividend, stock split, reverse stock split, separation, spinoff, reorganization,
extraordinary dividend of cash or other property, share combination or subdivision, recapitalization, capital reduction distribution,
or similar event affecting the capital structure of Skyward Specialty (each, a “Share Change”) that occurs at any time
after the Effective Date (including any such Corporate Event or Share Change that occurs after such adoption and coincident with or prior
to the Effective Date), the Administrator shall make equitable and appropriate substitutions or proportionate adjustments to (i) the
aggregate number and kind of shares of Common Stock or other securities on which Awards under the Plan may be granted to Eligible Individuals,
(ii) the maximum number of shares of Common Stock or other securities that may be issued with respect to Incentive Stock Options
granted under the Plan, (iii) the number of shares of Common Stock or other securities covered by each outstanding Award and the
exercise price, base price or other price per share, if any, and other relevant terms of each outstanding Award, and (iv) all other
numerical limitations relating to Awards, whether contained in this Plan or in Award Agreements; provided, however, that
any fractional shares resulting from any such adjustment shall be eliminated.

 

(b)            Discretionary
Adjustments. In the case of Corporate Events, the Administrator may make such other adjustments to outstanding Awards as it determines
to be appropriate and desirable, which adjustments may include, without limitation, (i) the cancellation of outstanding Awards in
exchange for payments of cash, securities or other property or a combination thereof having an aggregate value equal to the value of such
Awards, as determined by the Administrator in its sole discretion (it being understood that in the case of a Corporate Event with respect
to which stockholders of Skyward Specialty receive consideration other than publicly traded equity securities of the ultimate surviving
entity, any such determination by the Administrator that the value of a stock option or stock appreciation right shall for this purpose
be deemed to equal the excess, if any, of the value of the consideration being paid for each share of Common Stock pursuant to such Corporate
Event over the exercise price or base price of such stock option or stock appreciation right shall conclusively be deemed valid and that
any stock option or stock appreciation right may be cancelled for no consideration upon a Corporate Event if its exercise price or base
price equals or exceeds the value of the consideration being paid for each share of Common Stock pursuant to such Corporate Event), (ii) the
substitution of securities or other property (including, without limitation, cash or other securities of Skyward Specialty and securities
of entities other than Skyward Specialty) for the shares of Common Stock subject to outstanding Awards, and (iii) the substitution
of equivalent awards, as determined in the sole discretion of the Administrator, of the surviving or successor entity or a parent thereof
(“Substitute Awards”).

 

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(c)            Adjustments
to Performance Goals. The Administrator may, in its discretion, adjust the Performance Goals applicable to any Awards to reflect any
unusual or non-recurring events and other extraordinary items, impact of charges for restructurings, discontinued operations and the cumulative
effects of accounting or tax changes, each as defined by generally accepted accounting principles or as identified in Skyward Specialty’s
consolidated financial statements, notes to the consolidated financial statements, management’s discussion and analysis or other
Skyward Specialty filings with the Securities and Exchange Commission. If the Administrator determines that a change in the business,
operations, corporate structure or capital structure of Skyward Specialty or the applicable subsidiary, business segment or other operational
unit of Skyward Specialty or any such entity or segment, or the manner in which any of the foregoing conducts its business, or other events
or circumstances, render the Performance Goals to be unsuitable, the Administrator may modify such Performance Goals or the related minimum
acceptable level of achievement, in whole or in part, as the Administrator deems appropriate and equitable.

 

(d)            Statutory
Requirements Affecting Adjustments. Notwithstanding the foregoing: (A) any adjustments made pursuant to Section 10 to Awards
that are considered “deferred compensation” within the meaning of Section 409A of the Code shall be made in compliance
with the requirements of Section 409A of the Code; (B) any adjustments made pursuant to Section 10 to Awards that are not
considered “deferred compensation” subject to Section 409A of the Code shall be made in such a manner as to ensure that
after such adjustment, the Awards either (1) continue not to be subject to Section 409A of the Code or (2) comply with
the requirements of Section 409A of the Code; (C) in any event, the Administrator shall not have the authority to make any adjustments
pursuant to Section 10 to the extent the existence of such authority would cause an Award that is not intended to be subject to Section 409A
of the Code at the date of grant to be subject thereto; and (D) any adjustments made pursuant to Section 10 to Awards that are
Incentive Stock Options shall be made in compliance with the requirements of Section 424(a) of the Code.

 

(e)            Dissolution
or Liquidation. Unless the Administrator determines otherwise, all Awards outstanding under the Plan shall terminate upon the dissolution
or liquidation of Skyward Specialty.

 

11.           Change
in Control Provisions.

 

(a)            Termination
of Awards. Notwithstanding the provisions of Section 11(b), in the event that any transaction resulting in a Change in Control
occurs, outstanding Awards will terminate upon the effective time of such Change in Control unless provision is made in connection with
the transaction for the continuation or assumption of such Awards by, or for the issuance therefor of Substitute Awards of, the surviving
or successor entity or a parent thereof. Solely with respect to Awards that will terminate as a result of the immediately preceding sentence
and except as otherwise provided in the applicable Award Agreement:

 

(i)             the
outstanding Awards of stock options and stock appreciation rights that will terminate upon the effective time of the Change in Control
shall, immediately before the effective time of the Change in Control, become fully exercisable and the holders of such Awards will be
permitted, immediately before the Change in Control, to exercise the Awards;

 

(ii)            the
outstanding shares of Restricted Stock the vesting or restrictions on which are then solely time-based and not subject to achievement
of Performance Goals shall, immediately before the effective time of the Change in Control, become fully vested, free of all transfer
and lapse restrictions and free of all risks of forfeiture;

 

(iii)           the
outstanding shares of Restricted Stock the vesting or restrictions on which are then subject to and pending achievement of Performance
Goals shall, immediately before the effective time of the Change in Control and unless the Award Agreement provides for vesting or lapsing
of restrictions in a greater amount upon the occurrence of a Change in Control, become vested, free of transfer and lapse restrictions
and risks of forfeiture in such amounts as if the applicable Performance Goals for the unexpired Performance Period had been achieved
at the target level set forth in the applicable Award Agreement;

 

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(iv)           the
outstanding Restricted Stock Units, Performance Shares and Performance Units the vesting, earning or settlement of which is then solely
time-based and not subject to or pending achievement of Performance Goals shall, immediately before the effective time of the Change in
Control, become fully earned and vested and shall be settled in cash or shares of Common Stock (consistent with the terms of the Award
Agreement after taking into account the effect of the Change in Control transaction on the shares) as promptly as is practicable, subject
to any applicable limitations imposed thereon by Section 409A of the Code; and

 

(v)            the
outstanding Restricted Stock Units, Performance Shares and Performance Units the vesting, earning or settlement of which is then subject
to and pending achievement of Performance Goals shall, immediately before the effective time of the Change in Control and unless the Award
Agreement provides for vesting, earning or settlement in a greater amount upon the occurrence of a Change in Control, become vested and
earned in such amounts as if the applicable Performance Goals for the unexpired Performance Period had been achieved at the target level
set forth in the applicable Award Agreement and shall be settled in cash or shares of Common Stock (consistent with the terms of the Award
Agreement after taking into account the effect of the Change in Control transaction on the shares) as promptly as is practicable, subject
to any applicable limitations imposed thereon by Section 409A of the Code.

 

Implementation of the provisions of this Section 11(a) shall
be conditioned upon consummation of the Change in Control.

 

(b)           Continuation,
Assumption or Substitution of Awards. The Administrator may specify, on or after the date of grant, in an award agreement or amendment
thereto, the consequences of a Participant’s Termination of Service that occurs coincident with or following the occurrence of a
Change in Control, if a Change in Control occurs under which provision is made in connection with the transaction for the continuation
or assumption of outstanding Awards by, or for the issuance therefor of Substitute Awards of, the surviving or successor entity or a parent
thereof.

 

(c)            Other
Permitted Actions. In the event that any transaction resulting in a Change in Control occurs, the Administrator may take any of the
actions set forth in Section 10 with respect to any or all Awards granted under the Plan.

 

(d)            Section 409A
Savings Clause. Notwithstanding the foregoing, if any Award is considered to be a “nonqualified deferred compensation plan”
within the meaning of Section 409A of the Code, this Section 11 shall apply to such Award only to the extent that its application
would not result in the imposition of any tax or interest or the inclusion of any amount in income under Section 409A of the Code.

 

12.           Substitution
of Awards in Mergers and Acquisitions.

 

Awards may be granted under the Plan from time
to time in substitution for assumed awards held by employees, officers, or directors of entities who become employees, officers, or directors
of Skyward Specialty or a Subsidiary as the result of a merger or consolidation of the entity for which they perform services with Skyward
Specialty or a Subsidiary, or the acquisition by Skyward Specialty of the assets or stock of the such entity. The terms and conditions
of any Awards so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate
at the time of grant to conform the Awards to the provisions of the assumed awards for which they are substituted and to preserve their
intrinsic value as of the date of the merger, consolidation or acquisition transaction. To the extent permitted by applicable law and
marketplace or listing rules of the primary securities market or exchange on which the Common Stock is listed or admitted for trading,
any available shares under a stockholder-approved plan of an acquired company (as appropriately adjusted to reflect the transaction) may
be used for Awards granted pursuant to this Section 12 and, upon such grant, shall not reduce the Share Pool.

 

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13.           Compliance
with Securities Laws; Listing and Registration.

 

(a)            The
obligation of Skyward Specialty to sell or deliver Common Stock with respect to any Award granted under the Plan shall be subject to all
applicable laws, rules and regulations, including all applicable federal, state securities laws, and the obtaining of all such approvals
by governmental agencies as may be deemed necessary or appropriate by the Administrator. If at any time the Administrator determines that
the delivery of Common Stock under the Plan is or may be unlawful under the laws of any applicable jurisdiction, or Federal, state or
foreign (non-United States) securities laws, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall
be suspended until the Administrator determines that such delivery is lawful. If at any time the Administrator determines that the delivery
of Common Stock under the Plan would or may violate the rules of any exchange on which Skyward Specialty’s securities are then
listed for trade, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be suspended until the Administrator
determines that such delivery would not violate such rules. If the Administrator determines that the exercise or nonforfeitability of,
or delivery of benefits pursuant to, any Award would violate any applicable provision of securities laws or the listing requirements of
any stock exchange upon which any of Skyward Specialty’s equity securities are listed, then the Administrator may postpone any such
exercise, nonforfeitability or delivery, as applicable, but Skyward Specialty shall use all reasonable efforts to cause such exercise,
nonforfeitability or delivery to comply with all such provisions at the earliest practicable date.

 

(b)           Each
Award is subject to the requirement that, if at any time the Administrator determines, in its absolute discretion, that the listing, registration
or qualification of Common Stock issuable pursuant to the Plan is required by any securities exchange or under any state, federal or foreign
(non-United States) law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or
in connection with, the grant of an Award or the issuance of Common Stock, no such Award shall be granted or payment made or Common Stock
issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any
conditions not acceptable to the Administrator.

 

(c)           In
the event that the disposition of Common Stock acquired pursuant to the Plan is not covered by a then current registration statement under
the Securities Act of 1933, as amended (the “Securities Act”), and is not otherwise exempt from such registration,
such Common Stock shall be restricted against transfer to the extent required by the Securities Act or regulations thereunder, and the
Administrator may require a person receiving Common Stock pursuant to the Plan, as a condition precedent to receipt of such Common Stock,
to represent to Skyward Specialty in writing that the Common Stock acquired by such person is acquired for investment only and not with
a view to distribution and that such person will not dispose of the Common Stock so acquired in violation of Federal, state or foreign
securities laws and furnish such information as may, in the opinion of counsel for the Company, be appropriate to permit the Company to
issue the Common Stock in compliance with applicable Federal, state or foreign securities laws.

 

14.           Section 409A
Compliance.

 

It is the intention of Skyward Specialty that any
Award that constitutes a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Code shall
comply in all respects with the requirements of Section 409A of the Code to avoid the imposition of any tax or interest or the inclusion
of any amount in income pursuant to Section 409A of the Code, and the terms of each such Award shall be construed, administered and
deemed amended, if applicable, in a manner consistent with this intention. Notwithstanding the foregoing, neither Skyward Specialty nor
any of its Affiliates nor any of its or their directors, officers, employees, agents or other service providers will be liable for any
taxes, penalties or interest imposed on any Participant or other person with respect to any amounts paid or payable (whether in cash,
shares of Common Stock or other property) under any Award, including any taxes, penalties or interest imposed under or as a result of
Section 409A of the Code. Any payments described in an Award that are due within the “short term deferral period” as
defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise. For purposes
of any Award, each amount to be paid or benefit to be provided to a Participant that constitutes deferred compensation subject to Section 409A
of the Code shall be construed as a separate identified payment for purposes of Section 409A of the Code. For purposes of Section 409A
of the Code, the payment of Dividend Equivalents under any Award shall be construed as earnings and the time and form of payment of such
Dividend Equivalents shall be treated separately from the time and form of payment of the underlying Award. Notwithstanding any other
provision of the Plan to the contrary, with respect to any Award that constitutes a “nonqualified deferred compensation plan”
within the meaning of Section 409A of the Code, any payments (whether in cash, shares of Common Stock or other property) to be made
with respect to the Award that become payable on account of the Participant’s separation from service, within the meaning of Section 409A
of the Code, while the Participant is a “specified employee” (as determined in accordance with the uniform policy adopted
by the Administrator with respect to all of the arrangements subject to Section 409A of the Code maintained by Skyward Specialty
and its Affiliates) and which would otherwise be paid within six months after the Participant’s separation from service, to the
extent necessary to avoid the imposition of taxes under Section 409A, shall be accumulated (without interest) and paid on the first
day of the seventh month following the Participant’s separation from service or, if earlier, within 15 days after the appointment
of the personal representative or executor of the Participant’s estate following the Participant’s death. Notwithstanding
anything in the Plan or an Award Agreement to the contrary, in no event shall the Administrator exercise its discretion to accelerate
the payment or settlement of an Award where such payment or settlement constitutes deferred compensation within the meaning of Code section
409A unless, and solely to the extent that, such accelerated payment or settlement is permissible under Treasury Regulation section 1.409A-3(j)(4).

 

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15.           Plan
Duration; Amendment and Discontinuance.

 

(a)           Plan
Duration. The Plan shall remain in effect, subject to the right of the Board or the Compensation Committee to amend or terminate the
Plan at any time, until the earlier of (a) the earliest date as of which all Awards granted under the Plan have been satisfied in
full or terminated and no shares of Common Stock approved for issuance under the Plan remain available to be granted under new Awards
or (b) September 22, 2032. No Awards shall be granted under the Plan after such termination date. Subject to other applicable
provisions of the Plan, all Awards made under the Plan on or before September 22, 2032 or such earlier termination of the Plan, shall
remain in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards.

 

(b)           Amendment
and Discontinuance of the Plan. The Board or the Compensation Committee may amend, alter or discontinue the Plan, but no amendment,
alteration or discontinuation shall be made which would materially impair the rights of a Participant with respect to a previously granted
Award without such Participant’s consent, except such an amendment made to comply with applicable law or rule of any securities
exchange or market on which the Common Stock is listed or admitted for trading or to prevent adverse tax or accounting consequences to
Skyward Specialty or the Participant. Notwithstanding the foregoing, no such amendment shall be made without the approval of Skyward Specialty’s
stockholders to the extent such amendment would (A) materially increase the benefits accruing to Participants under the Plan, (B) materially
increase the number of shares of Common Stock which may be issued under the Plan or to a Participant, (C) materially expand the eligibility
for participation in the Plan, (D) eliminate or modify the prohibition set forth in Section 7(e) on repricing of stock
options and stock appreciation rights, (E) lengthen the maximum term or lower the minimum exercise price or base price permitted
for stock options and stock appreciation rights, or (F) modify the prohibition on the issuance of reload or replenishment options.
Except as otherwise determined by the Board or Compensation Committee, termination of the Plan shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

(c)            Amendment
of Awards. Subject to Section 7(e), the Administrator may unilaterally amend the terms of any Award theretofore granted, but
no such amendment shall materially impair the rights of any Participant with respect to an Award without the Participant’s consent,
except such an amendment made to cause the Plan or Award to comply with applicable law, applicable rule of any securities exchange
on which the Common Stock is listed or admitted for trading, or to prevent adverse tax or accounting consequences for the Participant
or the Company or any of its Affiliates. For purposes of the foregoing sentence, an amendment to an Award that results in a change in
the tax consequences of the Award to the Participant shall not be considered to be a material impairment of the rights of the Participant
and shall not require the Participant’s consent.

 

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16.          General
Provisions.

 

(a)            Non-Guarantee
of Employment or Service. Nothing in the Plan or in any Award Agreement thereunder shall confer any right on an individual to continue
in the service of Skyward Specialty or any Affiliate or shall interfere in any way with the right of Skyward Specialty or any Affiliate
to terminate such service at any time with or without cause or notice and whether or not such termination results in (i) the failure
of any Award to vest or become payable; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any
other adverse effect on the individual’s interests under any Award or the Plan. No person, even though deemed an Eligible Individual,
shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. To the extent
that an Eligible Individual who is an employee of a Subsidiary receives an Award under the Plan, that Award shall in no event be understood
or interpreted to mean that Skyward Specialty is the Participant’s employer or that the Participant has an employment relationship
with Skyward Specialty.

 

(b)            No
Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind
or a fiduciary relationship between Skyward Specialty and a Participant or any other person. To the extent that any Participant or other
person acquires a right to receive payments from Skyward Specialty pursuant to an Award, such right shall be no greater than the right
of any unsecured general creditor of Skyward Specialty.

 

(c)            Status
of Awards. Awards shall be special incentive payments to the Participant and shall not be taken into account in computing the amount
of salary or compensation of the Participant for purposes of determining any pension, retirement, death, severance or other benefit under
(a) any pension, retirement, profit-sharing, bonus, insurance, severance or other employee benefit plan of Skyward Specialty or any
Affiliate now or hereafter in effect under which the availability or amount of benefits is related to the level of compensation or (b) any
agreement between (i) Skyward Specialty or any Affiliate and (ii) the Participant, except as such plan or agreement shall otherwise
expressly provide.

 

(d)            Subsidiary
Employees. In the case of a grant of an Award to an Eligible Individual who provides services to any Subsidiary, Skyward Specialty
may, if the Administrator so directs, issue or transfer the shares of Common Stock, if any, covered by the Award to the Subsidiary, for
such lawful consideration as the Administrator may specify, upon the condition or understanding that the Subsidiary will transfer the
shares of Common Stock to the Eligible Individual in accordance with the terms of the Award specified by the Administrator pursuant to
the provisions of the Plan. All shares of Common Stock underlying Awards that are forfeited or canceled after such issue or transfer of
shares to the Subsidiary shall revert to Skyward Specialty.

 

(e)            Governing
Law and Interpretation. The validity, construction and effect of the Plan, of Award Agreements entered into pursuant to the Plan,
and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Award Agreements, and
the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance
with applicable United States federal laws and the laws of the State of Delaware, without regard to its conflict of laws principles. The
captions of the Plan are not part of the provisions hereof and shall have no force or effect. Except where the context otherwise requires:
(i) the singular includes the plural and vice versa; (ii) a reference to one gender includes other genders; (iii) a reference
to a person includes a natural person, partnership, corporation, association, governmental or local authority or agency or other entity;
and (iv) a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations,
amendments, re-enactments or replacements of any of them.

 

(f)            Use
of English Language. The Plan, each Award Agreement, and all other documents, notices and legal proceedings entered into, given or
instituted pursuant to an Award shall be written in English, unless otherwise determined by the Administrator. If a Participant receives
an Award Agreement, a copy of the Plan or any other documents related to an Award translated into a language other than English, and if
the meaning of the translated version is different from the English version, the English version shall control.

 

(g)            Recovery
of Amounts Paid. Except as otherwise provided by the Administrator, Awards granted under the Plan shall be subject to any and all
policies, guidelines, codes of conduct, or other agreement or arrangement adopted by the Board or Compensation Committee with respect
to the recoupment, recovery or clawback of compensation (collectively, the “Recoupment Policy”) and/or to any provisions set
forth in the applicable Award Agreement under which Skyward Specialty may recover from current and former Participants any amounts paid
or shares of Common Stock issued under an Award and any proceeds therefrom under such circumstances as the Administrator determines appropriate.
The Administrator may apply the Recoupment Policy to Awards granted before the policy is adopted to the extent required by applicable
law or rule of any securities exchange or market on which shares of Common Stock are listed or admitted for trading, as determined
by the Administrator in its sole discretion.

 

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17.           Glossary.

 

Under this Plan, except where the context otherwise
indicates, the following definitions apply:

 

“Administrator”
means the Compensation Committee, or such other committee(s) of director(s) duly appointed by the Board or the Compensation
Committee to administer the Plan or delegated limited authority to perform administrative actions under the Plan, and having such powers
as shall be specified by the Board or the Compensation Committee; provided, however, that at any time the Board may serve as the Administrator
in lieu of or in addition to the Compensation Committee or such other committee(s) of director(s) to whom administrative authority
has been delegated. With respect to any Award to which Section 16 of the Exchange Act applies, the Administrator shall consist of
either the Board or a committee of the Board, which committee shall consist of three or more directors, each of whom is intended to be,
to the extent required by Rule 16b-3 of the Exchange Act, a “non-employee director” as defined in Rule 16b-3 of
the Exchange Act and an “independent director” to the extent required by the rules of the national securities exchange
that is the principal trading market for the Common Stock, provided that, with respect to Awards made to a member of the Board who is
not an employee of the Company, Administrator means the Board. Any member of the Administrator who does not meet the foregoing requirements
shall abstain from any decision regarding an Award and shall not be considered a member of the Administrator to the extent required to
comply with Rule 16b-3 of the Exchange Act.

 

“Affiliate” means any entity,
whether now or hereafter existing, which controls, is controlled by, or is under common control with, Skyward Specialty or any successor
to Skyward Specialty. For this purpose, “control” (including the correlative meanings of the terms “controlled by”
and “under common control with”) shall mean ownership, directly or indirectly, of 50% or more of the total combined voting
power of all classes of voting securities issued by such entity, or the possession, directly or indirectly, of the power to direct the
management and policies of such entity, by contract or otherwise.

 

“Award” means any stock option,
stock appreciation right, stock award, stock unit, Performance Share, Performance Unit, and/or Other Stock-Based Award, whether granted
under this Plan.

 

“Award
Agreement” means the written document(s), including an electronic writing acceptable to the Administrator, and any notice,
addendum or supplement thereto, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate
the terms of the Plan.

 

“Board” means the Board of Directors
of Skyward Specialty.

 

“Cause” means, unless otherwise
defined in an employment agreement or Award Agreement, a termination of the Participant's service because of: (1) any act or omission
that constitutes a material breach by the Participant of any of his or her obligations under the Plan or an Award Agreement; (2) the
Participant's conviction of, or plea of nolo contendere to, (A) any felony or (B) another crime involving dishonesty or moral
turpitude or which could reflect negatively upon the Skyward Specialty or any of its Affiliates or otherwise impair or impede their operations;
(3) the Participant's engaging in any misconduct, negligence, act of dishonesty, violence or threat of violence (including any violation
of federal securities laws) that is injurious to the Skyward Specialty or any of its Affiliates; (4) the Participant's material breach
of a written policy of the Skyward Specialty or the rules of any governmental or regulatory body applicable to the Skyward Specialty;
(5) the Participant's refusal to follow the directions of the Board; or (6) any other willful misconduct by the Participant
that is materially injurious to the financial condition or business reputation of the Skyward Specialty or any of its Affiliates. Notwithstanding
anything to the contrary, Cause shall be determined in the sole discretion of the Chief Executive Officer of Skyward Specialty and such
Chief Executive Officer shall have the sole discretion to use after-acquired evidence to retroactively recharacterize the prior termination
as a termination for Cause if such after-acquired evidence supports such an action; provided that if the Participant in question is the
Chief Executive Officer, then such determination shall be made in the sole discretion of the Board, which may also use after-acquired
evidence in making such determination.

 

“Change in Control” means, unless
otherwise defined in an Award Agreement, the first of the following to occur: (i) a Change in Ownership of Skyward Specialty, (ii) a
Change in Effective Control of Skyward Specialty, or (iii) a Change in the Ownership of Assets of Skyward Specialty, as described
herein and construed in accordance with Code section 409A.

 

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(i)             A
 “Change in Ownership of Skyward Specialty” shall occur on the date that any one Person acquires, or Persons Acting as a Group
acquire, ownership of the capital stock of Skyward Specialty that, together with the stock held by such Person or Group, constitutes more
than 50% of the total fair market value or total voting power of the capital stock of Skyward Specialty. However, if any one Person is,
or Persons Acting as a Group are, considered to own more than 50%, on a fully diluted basis, of the total fair market value or total voting
power of the capital stock of Skyward Specialty, the acquisition of additional stock by the same Person or Persons Acting as a Group is
not considered to cause a Change in Ownership of Skyward Specialty or to cause a Change in Effective Control of Skyward Specialty (as
described below). An increase in the percentage of capital stock owned by any one Person, or Persons Acting as a Group, as a result of
a transaction in which Skyward Specialty acquires its stock in exchange for property will be treated as an acquisition of stock.

 

(ii)            A
 “Change in Effective Control of Skyward Specialty” shall occur on the date either (A) a majority of members of Skyward
Specialty’s Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority
of the members of Skyward Specialty’s Board before the date of the appointment or election, or (B) any one Person, or Persons
Acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person
or Persons) ownership of stock of Skyward Specialty possessing 50% or more of the total voting power of the stock of Skyward Specialty.

 

(iii)           A
 “Change in the Ownership of Assets of Skyward Specialty” shall occur on the date that any one Person acquires, or Persons
Acting as a Group acquire (or has or have acquired during the 12-month period ending on the date of the most recent acquisition by such
Person or Persons), assets from Skyward Specialty that have a total gross fair market value equal to or more than 50% of the total gross
fair market value of all of the assets of Skyward Specialty immediately before such acquisition or acquisitions. For this purpose, gross
fair market value means the value of the assets of Skyward Specialty, or the value of the assets being disposed of, determined without
regard to any liabilities associated with such assets.

 

The following rules of construction apply
in interpreting the definition of Change in Control:

 

(A)          A
 “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended, other than employee benefit plans sponsored or maintained by Skyward Specialty and by
entities controlled by Skyward Specialty or an underwriter, initial purchaser or placement agent temporarily holding the capital stock
of Skyward Specialty pursuant to a registered public offering.

 

(B)           Persons
will be considered to be Persons Acting as a Group (or Group) if they are owners of a corporation that enters into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with the corporation. If a Person owns stock in both corporations that
enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting
as a Group with other shareholders only with respect to the ownership in that corporation before the transaction giving rise to the change
and not with respect to the ownership interest in the other corporation. Persons will not be considered to be acting as a Group solely
because they purchase assets of the same corporation at the same time or purchase or own stock of the same corporation at the same time,
or as a result of the same public offering.

 

(C)           A
Change in Control shall not include a transfer to a related person as described in Code section 409A or a public offering of capital stock
of Skyward Specialty.

 

(D)           For
purposes of the definition of Change in Control, Section 318(a) of the Code applies to determine stock ownership. Stock underlying
a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option is not
considered owned by the individual who holds the unvested option). For purposes of the preceding sentence, however, if a vested option
is exercisable for stock that is not substantially vested (as defined by Treasury Regulation §1.83-3(b) and (j)), the stock
underlying the option is not treated as owned by the individual who holds the option.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto, the Treasury Regulations
thereunder and other relevant interpretive guidance issued by the Internal Revenue Service or the Treasury Department. Reference to any
specific section of the Code shall be deemed to include such regulations and guidance, as well as any successor section, regulations and
guidance.

 

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“Common
Stock” means shares of common stock of Skyward Specialty Insurance Group, Inc., par value $0.01 per share, and any
capital securities into which they are converted.

 

“Company” means Skyward Specialty
Insurance Group, Inc. and its Subsidiaries, except where the context otherwise requires. For purposes of determining whether a Change
in Control has occurred, Company shall mean only Skyward Specialty Insurance Group, Inc.

 

“Compensation
Committee” means the Compensation Committee of the Board.

 

“Director Limit” shall have
the meaning ascribed to it in Section 5(e) of the Plan.

 

“Dividend Equivalent” means
a right, granted to a Participant, to receive cash, Common Stock, stock Units or other property equal in value to dividends paid with
respect to a specified number of shares of Common Stock.

 

“Effective
Date” means the date the Plan is adopted by the Board.

 

“Eligible Individuals” means
(i) officers and employees of, and other individuals, including non-employee directors, who are natural persons providing bona fide
services to or for, Skyward Specialty or any of its Subsidiaries, provided that such services are not in connection with the offer
or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for Skyward Specialty’s
securities, and (ii) prospective officers, employees and service providers who have accepted offers of employment or other service
relationship from Skyward Specialty or a Subsidiary.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time, and any successor thereto. Reference to any specific section of the Exchange Act shall
be deemed to include such regulations and guidance issued thereunder, as well as any successor section, regulations and guidance.

 

“Fair
Market Value” means, on a per share basis as of any date, unless otherwise determined by the Administrator:

 

(i)             if
the principal market for the Common Stock (as determined by the Administrator if the Common Stock is listed or admitted to trading on
more than one exchange or market) is a national securities exchange or an established securities market, unless otherwise determined by
the Administrator, the official closing price per share of Common Stock for the regular market session on that date on the principal exchange
or market on which the Common Stock is then listed or admitted to trading or, if no sale is reported for that date, on the last preceding
day on which a sale was reported, all as reported by such source as the Administrator may select;

 

(ii)            if
the principal market for the Common Stock is not a national securities exchange or an established securities market, but the Common Stock
is quoted by a national quotation system, the average of the highest bid and lowest asked prices for the Common Stock on that date as
reported on a national quotation system or, if no prices are reported for that date, on the last preceding day on which prices were reported,
all as reported by such source as the Administrator may select; or

 

(iii)           if
the Common Stock is neither listed or admitted to trading on a national securities exchange or an established securities market, nor quoted
by a national quotation system, the value determined by the Administrator in good faith by the reasonable application of a reasonable
valuation method, which method may, but need not, include taking into account an appraisal of the fair market value of the Common Stock
conducted by a nationally recognized appraisal firm selected by the Administrator.

 

Notwithstanding the preceding, for foreign, federal,
state and local income tax reporting purposes and for such other purposes as the Administrator deems appropriate, the Fair Market Value
shall be determined by the Administrator in accordance with uniform and nondiscriminatory standards adopted by it from time to time.

 

“Full Value Award” means an
Award that results in Skyward Specialty transferring the full value of a share of Common Stock under the Award, whether or not an actual
share of stock is issued. Full Value Awards shall include, but are not limited to, stock awards, stock units, Performance Shares, Performance
Units that are payable in Common Stock, and Other Stock-Based Awards for which Skyward Specialty transfers the full value of a share of
Common Stock under the Award, but shall not include Dividend Equivalents.

 

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“Incentive Stock Option” means
any stock option that is designated, in the applicable Award Agreement or the resolutions of the Administrator under which the stock option
is granted, as an “incentive stock option” within the meaning of Section 422 of the Code and otherwise meets the requirements
to be an “incentive stock option” set forth in Section 422 of the Code.

 

“IPO Date” means the date of
the underwriting agreement between Skyward Specialty and the underwriter(s) managing the initial public offering of the Common Stock,
pursuant to which the Common Stock is priced for the initial public offering.

 

“Non-Employee Director” means
a member of the Board who is not an employee of Skyward Specialty or any of its Affiliates.

 

“Nonqualified Option” means
any stock option that is not an Incentive Stock Option.

 

“Other Stock-Based Award” means
an Award of Common Stock or any other Award that is valued in whole or in part by reference to, or is otherwise based upon, shares of
Common Stock, including without limitation Dividend Equivalents and convertible debentures.

 

“Participant” means an Eligible
Individual to whom one or more Awards are or have been granted pursuant to the Plan and have not been fully settled or cancelled and,
following the death of any such person, his successors, heirs, executors and administrators, as the case may be.

 

“Performance Award” means a
Full Value Award, the grant, vesting, lapse of restrictions or settlement of which is conditioned upon the achievement of performance
objectives over a specified Performance Period and includes, without limitation, Performance Shares and Performance Units.

 

“Performance Goals” means the
performance goals established by the Administrator in connection with the grant of Awards based on Performance Metrics or other performance
criteria selected by the Administrator.

 

“Performance Period” means that
period established by the Administrator during which any Performance Goals specified by the Administrator with respect to such Award are
to be measured.

 

“Performance Metrics” means
criteria established by the Administrator for purposes of structuring goals under performance-based Awards, which may relate to any of
the following, as it may apply to an individual, one or more business units, divisions, or Affiliates, or on a company-wide basis, and
in absolute terms, relative to a base period, or relative to the performance of one or more comparable companies, peer groups, or an index
covering multiple companies:

 

(i)             Earnings
or Profitability Metrics: any derivative of sales or revenue; earnings/loss (gross, operating, net, or adjusted); book value; risk
management; earnings/loss before interest and taxes (“EBIT”); earnings/loss before interest, taxes, depreciation and amortization
(“EBITDA”); profit margins; operating margins; expense levels or ratios; provided that any of the foregoing metrics
may be adjusted to eliminate the effect of any one or more of the following: interest expense, asset impairments or investment losses,
early extinguishment of debt or stock-based compensation expense;

 

(ii)           Return
Metrics: any derivative of return on investment, assets, equity or capital (total or invested);

 

(iii)           Investment
Metrics: relative risk-adjusted investment performance; investment performance of assets under management;

 

(iv)          Cash
Flow Metrics: any derivative of operating cash flow; cash flow sufficient to achieve financial ratios or a specified cash balance;
free cash flow; cash flow return on capital; net cash provided by operating activities; cash flow per share; working capital;

 

(v)           Liquidity
Metrics: any derivative of debt leverage (including debt to capital, net debt-to-capital, debt-to-EBITDA or other liquidity ratios);

 

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(vi)          Stock
Price and Equity Metrics: any derivative of return on stockholders’ equity; total stockholder return; stock price; stock price
appreciation; market capitalization; earnings/loss per share (basic or diluted) (before or after taxes);

 

(vii)         Insurance
Related Metrics: written or earned premium growth, direct or net; written or earned premium, direct or net; new business premium,
direct or net; policy retention; premium retention; policies in force; pricing; underwriting income; investment income or yield, one or
more operating ratios (including, without limitation, loss and loss adjustment expense ratio, catastrophe loss ratio, combined ratio,
expense ratio, accident or calendar year); borrowing levels, leverage ratios or credit rating; and/or

 

(viii)        Other
Performance Metrics: economic value added; surplus levels or growth; product development; sales of particular products or services;
development of business goals; customer acquisition, satisfaction or retention; service levels or standards; leadership effectiveness;
human capital management; environmental, social and governance (ESG) metrics; business development; or the occurrence of, or participation
in the negotiation or effectuation of, any of: acquisitions and divestitures (in whole or in part), joint ventures and strategic alliances,
spin-offs, split-ups and the like, reorganizations, or recapitalizations, restructurings, financings (issuance of debt or equity) or refinancings.

 

“Performance Shares” means a
grant of stock or stock Units the issuance, vesting or payment of which is contingent on performance as measured against predetermined
objectives over a specified Performance Period.

 

“Performance Units” means a
grant of dollar-denominated Units the value, vesting or payment of which is contingent on performance against predetermined objectives
over a specified Performance Period.

 

“Plan” means this Skyward Specialty
Insurance Group, Inc. 2022 Long-Term Incentive Plan, as set forth herein and as it may be amended from time to time.

 

“Restricted Stock” means an
Award of shares of Common Stock to a Participant that may be subject to certain transferability and other restrictions and to a risk of
forfeiture (including by reason of not satisfying certain Performance Goals).

 

“Restricted Stock Unit” means
a right granted to a Participant to receive shares of Common Stock or cash at the end of a specified deferral period, which right may
be conditioned on the satisfaction of certain requirements (including the satisfaction of certain Performance Goals).

 

“Restriction Period” means,
with respect to Full Value Awards, the period commencing on the date of grant of such Award to which vesting or transferability and other
restrictions and a risk of forfeiture apply and ending upon the expiration of the applicable vesting conditions, transferability and other
restrictions and lapse of risk of forfeiture and/or the achievement of the applicable Performance Goals (it being understood that the
Administrator may provide that vesting shall occur and/or restrictions shall lapse with respect to portions of the applicable Award during
the Restriction Period).

 

“Skyward Specialty” means Skyward
Specialty Insurance Group, Inc., a Delaware corporation.

 

“Subsidiary” means any corporation
or other entity in an unbroken chain of corporations or other entities beginning with Skyward Specialty if each of the corporations or
other entities, or group of commonly controlled corporations or other entities, other than the last corporation or other entity in the
unbroken chain then owns stock or other equity interests possessing 50% or more of the total combined voting power of all classes of stock
or other equity interests in one of the other corporations or other entities in such chain or otherwise has the power to direct the management
and policies of the entity by contract or by means of appointing a majority of the members of the board or other body that controls the
affairs of the entity; provided, however, that solely for purposes of determining whether a Participant has a Termination of Service
that is a “separation from service” within the meaning of Section 409A of the Code or whether an Eligible Individual
is eligible to be granted an Award that in the hands of such Eligible Individual would constitute a “nonqualified deferred compensation
plan” within the meaning of Section 409A of the Code , a “Subsidiary” of a corporation or other entity means all
other entities with which such corporation or other entity would be considered a single employer under Sections 414(b) or 414(c) of
the Code.

 

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“Tax Withholding Obligation”
means any federal, state, local or foreign (non-United States) income, employment or other tax or social insurance contribution required
by applicable law to be withheld in respect of Awards.

 

“Termination of Service” means
the termination of the Participant’s employment, or performance of services for, Skyward Specialty and its Subsidiaries. Temporary
absences from employment because of illness, vacation or leave of absence and transfers among Skyward Specialty and its Subsidiaries shall
not be considered Terminations of Service. With respect to any Award that constitutes a “nonqualified deferred compensation plan”
within the meaning of Section 409A of the Code, “Termination of Service” shall mean a “separation from service”
as defined under Section 409A of the Code to the extent required by Section 409A of the Code to avoid the imposition of any
tax or interest or the inclusion of any amount in income pursuant to Section 409A of the Code. A Participant has a separation from
service within the meaning of Section 409A of the Code if the Participant terminates employment with Skyward Specialty and all Subsidiaries
for any reason. A Participant will generally be treated as having terminated employment with Skyward Specialty and all Subsidiaries as
of a certain date if the Participant and the entity that employs the Participant reasonably anticipate that the Participant will perform
no further services for Skyward Specialty or any Subsidiary after such date or that the level of bona fide services that the Participant
will perform after such date (whether as an employee or an independent contractor) will permanently decrease to no more than 20 percent
(20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately
preceding 36-month period (or the full period of services if the Participant has been providing services for fewer than 36 months); provided,
however, that the employment relationship is treated as continuing while the Participant is on military leave, sick leave or other
bona fide leave of absence if the period of leave does not exceed six months or, if longer, so long as the Participant retains the right
to reemployment with Skyward Specialty or any Subsidiary.

 

“Total and Permanent Disability”
means, with respect to a Participant, except as otherwise provided in the relevant Award Agreement, that a Participant’s inability
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment as determined by the
Skyward Specialty’s long-term disability insurance carrier.

 

“Unit” means a bookkeeping entry
used by Skyward Specialty to record and account for the grant of the following types of Awards until such time as the Award is paid, cancelled,
forfeited or terminated, as the case may be: stock units, Restricted Stock Units, Performance Units, and Performance Shares that are expressed
in terms of units of Common Stock.

 

{end of document}

 

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