Form of RSU Award Agreement



 Exhibit 10.6 
 ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG 
 2012 OMNIBUS INCENTIVE
COMPENSATION PLAN 
 RSU AWARD AGREEMENT 
 This RSU Award Agreement (this “RSU Agreement”) sets forth the terms and conditions of an award (this “Award”) consisting of restricted stock units that
settle in Shares and/or cash (the “RSUs”) granted to you under the Allied World Assurance Company Holdings, AG 2012 Omnibus Incentive Compensation Plan (the “Plan”). Allied World Assurance Company Holdings,
AG (the “Company” or “Allied World”), and you agree as follows: 
 1. The Plan. This
Award is made pursuant to the Plan, the terms and conditions of which are incorporated in this RSU Agreement. Capitalized terms used in this RSU Agreement (including the attached Glossary of Terms) that are not defined in this RSU Agreement or in
the attached Glossary of Terms shall have the meanings set forth in the Plan. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this RSU Agreement (including the attached Glossary of
Terms), the Plan shall govern and control. 
 2. Award. The number of RSUs subject to this Award (i.e., the
aggregate Cash-Settled RSUs and Share-Settled RSUs) is set forth at the end of this RSU Agreement. Each RSU constitutes an unfunded and unsecured promise by Allied World to deliver (or cause to be delivered) to you, subject to the terms of this RSU
Agreement, one Allied World Share (or cash equal to the Fair Market Value thereof) on the applicable Delivery Date as provided herein. Until such delivery of Shares, except as otherwise provided in Section 3, you have only the rights of a
general unsecured creditor, and no rights as a shareholder of Allied World. THIS AWARD IS SUBJECT TO ALL TERMS, CONDITIONS AND PROVISIONS OF THE PLAN AND THIS RSU AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE CHOICE OF FORUM PROVISIONS SET FORTH
IN SECTION 15. 
 3. Vesting and Delivery. 

(a) Vesting. Except as provided in this Section 3 and in Sections 4 and 6, 25% of the RSUs subject to this Award shall vest
on each of the first, second, third and fourth anniversaries of the Date of Grant specified at the end of this RSU Agreement (each, a “Vesting Date”). Unless the Committee determines otherwise, and except as provided in this
Section 3 or in Section 6, if your employment terminates for any reason prior to a Vesting Date, your rights in respect of all of your then unvested RSUs shall terminate, and no Shares and/or cash shall be delivered in respect of such
RSUs. 
 (b) Delivery. Except as provided in this Section 3 and in Sections 4, 6 and 9, on each applicable Delivery
Date, the Company shall: 
 (i) issue or transfer to you, or cause to be issued or transferred to you, the number
of Shares underlying the Share-Settled RSUs that vested (if any) on the applicable Vesting Date, and shall either (A) deliver, or cause to be delivered, to you a certificate or certificates therefor, registered in your name; or (B) cause
such Shares to be credited to your account at a third-party stock plan administrator as may be arranged for by the Company or the Committee from time to time for purposes of the administration








 
of outstanding Awards under the Plan. You shall be deemed the beneficial owner of the Shares at the close of business on the applicable Vesting Date and shall be entitled to any dividend or
distribution that has not already been made with respect to such Shares if the record date for such dividend or distribution is after the close of business on such Vesting Date; and 

(ii) transfer to you, or cause to be transferred to you, an amount of cash equal to the aggregate Fair Market Value of the
Shares underlying the Cash-Settled RSUs that vested (if any) on the applicable Vesting Date, determined as of such Vesting Date. 
 (c) Death or Termination Due to Disability. Notwithstanding any other provision of this RSU Agreement, but subject to Section 6(b), if you die or are terminated due to Disability prior to any
Vesting Date, and provided your rights in respect of your RSUs have not previously terminated, then in lieu of delivery on the applicable Delivery Date and any subsequent Delivery Dates, the Shares and /or cash corresponding to your outstanding RSUs
shall be delivered to you or your estate or beneficiaries, as applicable, as soon as reasonably practicable after the date of your death or termination due to Disability, as applicable, and after such documentation, as may be requested by the
Company or third-party stock plan administrator, is provided to the Company or such third-party stock plan administrator, as applicable, but in no event later than March 15 of the calendar year immediately following the year in which such death
or termination occurred. Such issuance or transfer or delivery of cash shall be on the terms set forth in Section 3(b) applicable to Shares and/or cash deliverable on a regularly scheduled Delivery Date. Shares and/or cash delivered pursuant to
this Section 3(c) as a result of your termination due to Disability shall remain subject to repayment under Section 6(b) until the regularly scheduled Delivery Date for such Shares and/or cash. Except as otherwise provided in this
Section 3(c), all other conditions of this RSU Agreement shall continue to apply. 
 (d) Termination without Cause or
for Good Reason under Employment Agreement. Notwithstanding any other provision of this RSU Agreement or the Plan, in the event that you are party to an employment agreement with the Company that provides that the vesting of any portion of your
RSUs accelerates upon a termination without cause or for good reason (as such terms are defined in such employment agreement), then the provisions of such employment agreement shall govern, including the definitions of “cause” and
“good reason”. In the event of such accelerated vesting, in lieu of delivery on the applicable Delivery Date, the RSUs payable under this Section 3(d) shall be settled in Shares and/or cash as soon as reasonably practicable following
such termination without cause or for good reason, but in no event later than March 15 of the calendar year following such termination. 
 (e) Change of Control. Notwithstanding any other provision of this RSU Agreement or the Plan, in the event of a Change of Control, the change of control provisions of any employment agreement
between you and the Company shall govern, including the definition of “change of control” as provided in such agreement; provided, however, that, notwithstanding the foregoing, in the event of a Change of Control that
satisfies the definition as provided in the Plan but does not satisfy the definition of “change of control” as provided in such employment agreement, the terms and conditions of Section 8 of the Plan shall govern. In the event the
vesting of your RSUs accelerates pursuant to such employment agreement or if the vesting of 

  
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your RSUs accelerates pursuant to Section 8 of the Plan upon a Qualifying Termination within two years following a Change of Control, in lieu of delivery on the applicable Delivery Date, the
RSUs payable under this Section 3(e) shall be settled in Shares and/or cash as soon as reasonably practicable following the date on which such RSUs vest, but in no event later than March 15 of the calendar year following the calendar year
in which such RSUs vested. 
 4. Termination of RSUs and Non-Delivery of Shares. 

(a) Unless the Committee determines otherwise, and except as provided in Sections 3 and 6, your rights in respect of your outstanding
RSUs shall immediately terminate, and no Shares and/or cash shall be delivered in respect of such RSUs, if at any time prior to a Vesting Date your employment with the Company terminates for any reason, or you are otherwise no longer actively
employed by the Company. 
 (b) Unless the Committee determines otherwise, and except as provided in Sections 3 and 6, your
rights in respect of your outstanding RSUs (whether or not vested) shall immediately terminate, and no Shares and/or cash shall be delivered in respect of such RSUs, if at any time prior to a Delivery Date: 

(i) you attempt to have any dispute under this RSU Agreement or the Plan resolved in any manner that is not provided for
by Section 15; 
 (ii) any event that constitutes Cause has occurred; 

(iii) you in any manner, directly or indirectly, (A) Solicit any Client to transact business with a Competitive
Enterprise or to reduce or refrain from doing any business with the Company, (B) interfere with or damage (or attempt to interfere with or damage) any relationship between the Company and any such Client or (C) Solicit any person who is an
employee of the Company to resign from the Company or to apply for or accept employment with any Competitive Enterprise; or 
 (iv) you fail to certify to Allied World, in accordance with procedures established by the Committee with respect to a Delivery Date that you have complied, or the Committee determines that you have
failed as of a Delivery Date to comply, with all of the terms and conditions of this RSU Agreement. By accepting the delivery of Shares and/or cash under this RSU Agreement, you shall be deemed to have represented and certified at such time that you
have complied with all the terms and conditions of this RSU Agreement. 
 (c) Unless the Committee determines otherwise, if a
Delivery Date in respect of any of your outstanding RSUs occurs, and Shares and/or cash with respect to such outstanding RSUs would be deliverable under the terms and conditions of this RSU Agreement, except that you have not complied with the
conditions or your obligations under Section 4(b)(iv), all of your rights with respect to your outstanding RSUs shall terminate without delivery of Shares or payment of cash with respect thereto. In addition, except as otherwise required by law
or with the express prior written consent of the Board, you shall keep the amount of this Award strictly confidential and you expressly agree that any breach of this Agreement to keep such information confidential may result in forfeiture of this
Award and/or immediate termination of your employment. 

  
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 5. Repayment. If following the delivery of Shares and/or cash, the Committee
determines that all terms and conditions of this RSU Agreement in respect of such delivery were not satisfied, your rights in respect of this Award shall terminate immediately and entirely, and the Company shall be entitled to receive, and you shall
be obligated to pay the Company immediately upon demand therefor, the Fair Market Value of the Shares and the amount of cash, if any, received by you with respect to your Award, without reduction for any Shares and/or cash applied to satisfy
withholding tax or other obligations in respect of such Shares and/or cash. 
 6. Retirement. (a) Notwithstanding
any other provision of this RSU Agreement, but subject to Section 6(b), if your Retirement Eligibility Date occurs prior to any Delivery Date, and provided your rights in respect of your RSUs have not previously terminated, then in lieu of
delivery on such Delivery Date and any subsequent Delivery Dates, the Shares and/or cash corresponding to your outstanding RSUs shall be delivered to you, as soon as reasonably practicable following your Retirement Eligibility Date, but in no event
later than March 15 of the calendar year following your Retirement Eligibility Date. Such issuance or transfer (or delivery of cash in lieu thereof) shall be on the terms set forth in Section 3(b) applicable to Shares deliverable on a
regularly scheduled Delivery Date. Shares and/or cash delivered pursuant to this Section 6(a) as a result of your reaching your Retirement Eligibility Date shall remain subject to repayment under Section 6(b) until the regularly scheduled
Delivery Date for such Shares and/or cash. Except as otherwise provided in this Section 6(a), all other conditions of this RSU Agreement shall continue to apply. 
 (b) Without limiting the application of Section 4(b) or Section 4(c), your rights in respect of any outstanding RSUs that become vested solely by reason of a Disability in accordance with
Section 3(c) or Retirement Eligibility in accordance with Section 6(a) shall terminate immediately if, following the termination of your employment with the Company by reason of Disability or your reaching your Retirement Eligibility Date
and prior to a Delivery Date, you (i) form, or acquire a 5% or greater equity ownership, voting or profit participation interest in, any Competitive Enterprise or (ii) associate in any capacity (including, but not limited to, association
as an officer, employee, partner, director, consultant, agent or advisor) with any Competitive Enterprise, in which case no Shares and/or cash otherwise deliverable with respect to such Delivery Date shall be delivered and, to the extent that Shares
and/or cash otherwise scheduled to be delivered on such Delivery Date have already been delivered to you on an accelerated basis upon your termination of employment due to Disability or upon your Retirement Eligibility Date, the Company shall be
entitled to receive, and you shall be obligated to pay the Company immediately upon demand therefor, the Fair Market Value of the Shares (determined as of such Delivery Date) and the amount of cash (to the extent that cash was delivered to you)
delivered with respect to such Delivery Date without reduction for any Shares and/or cash applied to satisfy withholding tax or other obligations in respect of such Shares and/or cash. 

7. Recoupment of this Award. (a) In the event you are subject to Section 16(a) of the Exchange Act and engage in any act
of fraud or intentional misconduct that, in each case, contributes materially to any financial restatement of Allied World, any previously vested and 

  
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settled portion of this Award shall immediately be terminated, and you shall be required to forfeit or remit to Allied World the difference between any amount paid to you within the one-year
period preceding the financial restatement in respect of this Award and the amount that would have been paid to you based on such financial restatement. 
 (b) You acknowledge and agree that the terms of this Section 7 may be amended or modified by Allied World without your consent to the extent necessary to comply with the requirements of applicable
law, including Section 10D of the Exchange Act. 
 8. Non-transferability. Except as otherwise may be provided by
the Committee, the limitations set forth in Section 9(c) of the Plan shall apply to this Award. Any assignment in violation of the provisions of this Section 8 or Section 9(c) of the Plan shall be null and void. 

9. Withholding, Consent and Legends. 
 (a) The delivery of Shares and/or cash pursuant to Section 3 is conditioned on your satisfaction of any applicable withholding taxes (in accordance with Section 9(l) of the Plan). In the event
that there is withholding tax liability in connection with the vesting or settlement of this Award, you may satisfy, in whole or in part, any withholding tax liability by having Allied World withhold from the number of Shares and/or cash you would
be entitled to receive upon settlement of this Award an amount in cash or a number of Shares having a Fair Market Value (which shall either have the meaning set forth in the Plan or shall have such other meaning as determined by Allied World in
accordance with applicable withholding requirements) equal to such withholding tax liability. 
 (b) Your rights in respect of
your RSUs are conditioned on the receipt by the Company or third-party stock plan administrator, as applicable, to the full satisfaction of the Committee of any required consents that the Committee may determine to be necessary or advisable
(including, without limitation, your consenting to deductions from your wages, or another arrangement satisfactory to the Committee, to reimburse the Company for advances made on your behalf to satisfy withholding and other tax obligations in
connection with this Award). 
 (c) Allied World may affix to Certificates representing Shares issued pursuant to this RSU
Agreement any legend that the Committee determines to be necessary or advisable (including to reflect any restrictions to which you may be subject under a separate agreement with Allied World). Allied World may advise the transfer agent to place a
stop transfer order against any legended Shares. 
 10. No Rights to Continued Employment. Nothing in this RSU Agreement
or the Plan shall be construed as giving you any right to continued employment by the Company or affect any right that the Company may have to terminate or alter the terms and conditions of your employment. 

11. Successors and Assigns of Allied World. The terms and conditions of this RSU Agreement shall be binding upon, and shall inure
to the benefit of, Allied World and its successor entities. 

  
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 12. Committee Discretion. The Committee shall have full discretion with respect to
any actions to be taken or determinations to be made in connection with this RSU Agreement, and its determinations shall be final, binding and conclusive. 
 13. Amendment. The Committee reserves the right at any time to amend the terms and conditions set forth in this RSU Agreement as permitted by the Plan, and the Board may amend the Plan in any
respect. Notwithstanding the foregoing and except as otherwise provided for in Section 7(b), no such amendment shall materially adversely affect your rights and obligations under this RSU Agreement without your consent, except that the
Committee reserves the right to accelerate the delivery of the Shares and in its discretion provide that such Shares may not be transferable until the applicable Delivery Date on which such Shares otherwise would have been delivered (and that in
respect of such Shares you remain subject to the repayment obligations of Sections 5 and 7 in the circumstances under which the Shares would not have been delivered pursuant to Section 4, 6 or 7). Any amendment of this RSU Agreement shall be in
writing signed by an authorized member of the Committee or a person or persons designated by the Committee. 
 14.
Adjustment. In the event of a recapitalization, stock split, extraordinary dividend, rights offering, split-up or spin-off, or any other extraordinary distribution, subsequent to the date of the Date of Grant, the Committee or the Board shall
make such equitable adjustments, designed to protect dilution or enlargement of rights, as it may deem appropriate, in accordance with the Plan. 
 15. Governing Law; Venue. THIS AWARD SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. IN CONSIDERATION OF YOUR ACCEPTANCE OF THIS AWARD, YOU HEREBY
EXPRESSLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF AND VENUE IN THE COURTS OF SWITZERLAND WITH RESPECT TO ANY SUIT OR CLAIM INSTITUTED BY THE COMPANY OR YOU RELATING TO THIS AWARD. 

16. Sections 409A and 457A. (a) It is intended that this Award shall be exempt from Sections 409A and 457A of the Code
pursuant to the “short-term deferral” rule applicable to each such section, as set forth in the regulations or other guidance published by the IRS thereunder. 
 (b) Neither you nor any of your creditors or beneficiaries shall have the right to subject any deferred compensation (within the meaning of Sections 409A and 457A of the Code) payable under this RSU
Agreement to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Sections 409A and 457A of the Code, any deferred compensation (within the meaning of Sections 409A and
457A of the Code) payable to you or for your benefit under this RSU Agreement may not be reduced by, or offset against, any amount owing by you to Allied World or any of its Affiliates. 

(c) If, at the time of your separation from service (within the meaning of Section 409A of the Code), (i) you shall be a
specified employee (within the meaning of Section 409A if the Code and using the identification methodology selected by Allied World 

  
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from time to time) and (ii) Allied World shall make a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Sections 409A
and 457A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then Allied World shall
not pay such amount on the otherwise scheduled payment date but shall instead pay it, without interest, on the first business day after such six-month period. 
 (d) Notwithstanding any provision of this RSU Agreement to the contrary, in light of the uncertainty with respect to the proper application of Sections 409A and 457A of the Code, Allied World
reserves the right to make amendments to this RSU Agreement as Allied World deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A or 457A of the Code. In any case, you shall be solely responsible and
liable for the satisfaction of all taxes and penalties that may be imposed on you or for your account in connection with this RSU Agreement (including any taxes and penalties under Sections 409A and 457A of the Code), and neither Allied World
nor any of its Affiliates shall have any obligation to indemnify or otherwise hold you harmless from any or all of such taxes or penalties. 
 17. Company. The term “Company” and “Allied World” as used in this RSU Agreement (including the attached Glossary of Terms) with reference to employment shall include Allied
World and its subsidiaries. 
 18. Counterparts. This RSU 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. You and Allied World hereby acknowledge and agree that signatures delivered by electronic means (including by facsimile, “pdf” or
through any third-party stock plan administrator ) shall be deemed effective for all purposes. 
 19. Headings. The
headings in this RSU Agreement are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof. 

  
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 IN WITNESS WHEREOF, Allied World has caused this RSU Agreement to be duly executed and delivered as of the
Date of Grant. 
  

			
	ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
		
	By:	 	  

	Name:	 	
	Title:	 	


 Recipient: 

Total Number of RSUs: 
 - RSUs to be Settled in
Shares (the “Share-Settled RSUs”): 
 - RSUs to be Settled in Cash (the “Cash-Settled RSUs”): 

Date of Grant: 
 Vesting Dates: 

BY SIGNING BELOW, YOU ACKNOWLEDGE RECEIPT OF THIS AWARD, THIS AGREEMENT AND THE PLAN AND, AS AN EXPRESS CONDITION TO THE GRANT OF THIS AWARD, AGREE TO
BE BOUND BY THE TERMS OF THIS AGREEMENT AND THE PLAN. 
  

							
	By:	 	
	  

	Name: [                    ]
	  

	Street
	  

	City,	 	State	 	Zip Code
	  

	Social Security No./Local I.D. No



  
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 Glossary of Terms 
 Solely for purposes of this Award, the following terms shall have the meanings set forth below. Capitalized terms not defined in this Glossary of Terms shall have the meanings as used or defined in the
RSU Agreement or the Plan. 
 “Board” means the Board of Directors of Allied World. 

“Client” means any client or prospective client of the Company or its Subsidiaries to whom the Company or its
Subsidiaries provided services, or for whom the Company or its Subsidiaries transacted business, or whose identity became known to you in connection with your relationship with or employment by the Company. 

“Competitive Enterprise” means a business enterprise that (i) engages in any activity, or (ii) owns or
controls a significant interest in any entity that engages in any activity, that, in either case, competes anywhere with any activity in which the Company or its Subsidiaries is engaged. The activities covered by the previous sentence include,
without limitation, all insurance and re-insurance, and insurance and reinsurance related activities, and asset management located in Switzerland and abroad. 
 “Delivery Date” means each date as soon as reasonably practicable following each Vesting Date, but in no event later than March 15 of the calendar year immediately following each
such Vesting Date, on which Shares or cash are delivered to you in settlement of the RSUs vesting on each such Vesting Date. 

“Disability” means, in the absence of any employment agreement between you and the Company otherwise defining
Disability, any physical or mental disability or infirmity that prevents the performance of your employment duties for a period of (i) 90 consecutive days or (ii) 120 non-consecutive days during any 12 month period. Any
question as to the existence, extent or potentiality of your Disability upon which you and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company and approved by you (which approval shall not be
unreasonably withheld). In the event there is an employment agreement between you and the Company defining Disability, “Disability” shall have the meaning provided in such agreement. 

“Retirement Eligibility Date” means the date on which you attain age 65. 

“Solicit” means any direct or indirect communication of any kind whatsoever, regardless of by whom initiated, inviting,
advising, encouraging or requesting any person or entity, in any manner, to take or refrain from taking any action. 

  
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