Document:

EX-10.1

EXHIBIT 10.1

SEPARATION AND RELEASE AGREEMENT

THIS SEPARATION and RELEASE AGREEMENT (“Agreement”) is entered into by and between Jeffrey Kao
(“Employee”) and Hill-Rom Holdings, Inc. (together with its subsidiaries and affiliates, the
“Company”). To wit, the Parties agree as follows:

	1.	 	Employee’s active employment by the Company shall terminate effective April 2, 2010
(Employee’s “Effective Termination Date”). Except as specifically provided by this Agreement,
Employee’s Employment Agreement, any Change in Control Agreement and any Indemnity Agreement
that may exist between the Company and Employee, Employee agrees that the Company shall have
no other obligations or liabilities to him following his Effective Termination Date and that
his receipt of the Severance Benefits provided herein shall constitute a complete settlement,
satisfaction and waiver of any and all claims he may have against the Company.

	2.	 	Employee further submits, and the Company hereby accepts, his resignation as an employee,
officer and director, as of his Effective Termination Date for any position he may hold. The
Parties agree that this resignation shall apply to all such positions Employee may hold with
the Company or any parent, subsidiary or affiliated entity thereof. Employee agrees to
execute any documents needed to effectuate such resignations. Employee further agrees to take
whatever steps are requested and necessary to facilitate and ensure the smooth transition of
his duties and responsibilities to others.

	3.	 	Employee acknowledges that he has been advised of the American Jobs Creation Act of 2004,
which added Section 409A (“Section 409A”) to the Internal Revenue Code, and significantly
changed the taxation of nonqualified deferred compensation plans and arrangements. Under
proposed and final regulations as of the date of this Agreement, Employee has been advised
that his severance pay may be treated by the Internal Revenue Service as providing
“nonqualified deferred compensation,” and therefore subject to Section 409A. In that event,
several provisions in Section 409A may affect Employee’s receipt of severance compensation.
These include, but are not limited to, a provision which requires that distributions to
“specified employees” of public companies on account of separation from service may not be
made earlier than six (6) months after the effective date of such separation. If applicable,
failure to comply with Section 409A can lead to immediate taxation of deferrals, with interest
calculated at a penalty rate and a 20% penalty. As a result of the requirements imposed by
the American Jobs Creation Act of 2004, Employee agrees if he is a “specified employee” at the
time of his termination of employment and if severance payments are covered as “non-qualified
deferred compensation” or otherwise not exempt, the severance pay benefits shall not be paid
until a date at least six (6) months after Employee’s Effective Termination Date from Company,
as more fully explained by Paragraph 4, below.

	4.	 	In consideration of the promises contained in this Agreement and contingent upon Employee’s
compliance with such promises, the Company agrees to provide Employee the following:

	 	(a)	 	Severance pay, in lieu of, and not in addition to any other contractual, notice or
statutory pay obligations (other than accrued wages and deferred compensation) in the
maximum total amount of Three Hundred Eighty Thousand Dollars and Zero Cents ($380,000.00),
less applicable deductions or other set offs, payable as follows:

	 	(i)	 	Commencing on the next regularly scheduled payroll immediately following the
earlier to occur of fifteen (15) days from April 2, 2010 or the expiration of sixty
(60) days after Employee’s Effective Termination Date, Employee shall be paid severance
equivalent to his current bi-weekly base salary, less applicable deductions or other
set-offs), for a period up to Fifty Two (52) weeks following Employee’s Effective
Termination Date; provided, however, that if the before-stated sixty (60) day period
ends in a calendar year following the calendar year in which the sixty (60) day period
commenced, then this severance pay shall only begin on the next regularly scheduled
payroll following the expiration of sixty (60) days after the Employee’s Effective
Termination Date.

	 	(b)	 	Payment for any earned but unused vacation as of Employee’s Effective Termination Date,
less applicable deductions permitted or required by law, payable in one lump sum within
fifteen (15) days after the Employee’s Effective Termination Date; and

	 	(c)	 	Group Life Insurance coverage until the above-referenced Severance Pay terminates.

	5.	 	Except as may be required by Section 409A, the above Severance Pay shall be paid in
accordance with the Company’s standard payroll practices (e.g. bi-weekly). The Parties agree
that the initial two (2) weeks of the foregoing Severance Pay shall be allocated as
consideration provided to Employee in exchange for his execution of a release in compliance
with the Older Workers Benefit Protection Act. The balance of the severance benefits and
other obligations undertaken by the Company pursuant to this Agreement shall be allocated as
consideration for all other promises and obligations undertaken by Employee, including
execution of a general release of claims.

	6.	 	The Company further agrees to provide Employee with limited out-placement counseling with a
company of its choice provided that Employee participates in such counseling immediately
following termination of employment. Notwithstanding anything in this Section 6 to the
contrary, the out-placement counseling shall not be provided after the last day of the second
calendar year following the calendar year in which termination of employment occurs.

	7.	 	As of his Effective Termination Date, Employee will become ineligible to participate in the
Company’s health insurance program and continuation of coverage requirements under COBRA (if
any) will be triggered at that time. However, as additional consideration for the promises
and obligations contained herein (and except as may be prohibited by law), the Company agrees
to continue to pay the employer’s share of such coverage as provided under the health care
program selected by Employee as of his Effective Termination Date, subject to any approved
changes in coverage based on a qualified election, until the above-referenced Severance Pay
terminates, provided Employee (i) timely completes the applicable election of coverage forms
and (ii) continues to pay the employee portion of the applicable premium(s). Thereafter, if
applicable, coverage will be made available to Employee at his sole expense (i.e.,
Employee will be responsible for the full COBRA premium) for the remaining months of the COBRA
coverage period made available pursuant to applicable law. In the event Employee is deemed to
be a highly compensated employee under applicable law, Employee acknowledges that the value of
the benefits provided hereunder may be subject to taxation. The medical insurance provided
herein does not include any disability coverage.

	8.	 	Should Employee become employed before the above-referenced Severance Benefits are exhausted
or terminated, Employee agrees to so notify the Company in writing within five (5) business
days of Employee’s acceptance of such employment, providing the name of such employer (or
entity to whom Employee may be providing consulting services), his intended duties as well as
the anticipated start date. Such information is required to ensure Employee’s compliance with
his non-compete obligations as well as all other applicable restrictive covenants. Failure to
timely provide such notice shall be deemed a material breach of this Agreement entitling the
Company to recover as damages the value of all benefits provided to Employee hereunder plus
attorneys fees.

	9.	 	Employee agrees to fully indemnify and hold the Company harmless for any taxes, penalties,
interest, cost or attorneys’ fee assessed against or incurred by the Company on account of
such benefits having been provided to him or based on any alleged failure to withhold taxes or
satisfy any claimed obligation. Employee understands and acknowledges that neither the
Company, nor any of its employees, attorneys, or other representatives has provided him with
any legal or financial advice concerning taxes or any other matter, and that he has not relied
on any such advice in deciding whether to enter into this Agreement. To the extent
applicable, Employee understands and agrees that he shall have the responsibility for, and he
agrees to pay, any and all appropriate income tax or other tax obligations for which he is
individually responsible and/or related to receipt of any benefits provided in this Agreement
not subject to federal withholding obligations

	10.	 	In exchange for the foregoing Severance Benefits, JEFFREY KAO on behalf of himself, his
heirs, representatives, agents and assigns hereby RELEASES, INDEMNIFIES, HOLDS HARMLESS, and
FOREVER DISCHARGES (i) HILL-ROM HOLDINGS, INC., employees, shareholders, and agents, as well
as, (iv) all predecessors, successors and assigns thereof from any and all actions, charges,
claims, demands, damages or liabilities of any kind or character whatsoever, known or unknown,
which Employee now has or may have had through the effective date of this Agreement.

	11.	 	Without limiting the generality of the foregoing release, it shall include:  (i) all claims
or potential claims arising under any federal, state or local laws relating to the Parties’
employment relationship, including any claims Employee may have under the Civil Rights Acts of
1866, 1964 and 1991, as amended, 42 U.S.C. §§ 1981 and 2000(e) et seq.; the
Age Discrimination in Employment Act, as amended, 29 U.S.C. §§ 621 et seq.;
the Americans with Disabilities Act of 1990, as amended, 42 U.S.C §§ 12,101 et
seq.; the Fair Labor Standards Act 29 U.S.C. §§ 201 et seq.; the
Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101, et seq.;
the Sarbanes-Oxley Act of 2002, specifically including the Corporate and Criminal Fraud
Accountability Act, 18 USC §1514A et seq.; and any other federal, state or
local law governing the Parties’ employment relationship; (ii) any claims on account of,
arising out of or in any way connected with Employee’s employment with the Company or leaving
of that employment; (iii) any claims alleged or which could have been alleged in any charge or
complaint against the Company; (iv) any claims relating to the conduct of any employee,
officer, director, agent or other representative of the Company; (v) any claims of
discrimination, harassment or retaliation on any basis; (vi) any claims arising from any legal
restrictions on an employer’s right to separate its employees; (vii) any claims for personal
injury, compensatory or punitive damages or other forms of relief; and (viii) all other causes
of action sounding in contract, tort or other common law basis, including (a) the breach of
any alleged oral or written contract, (b) negligent or intentional misrepresentations, (c)
wrongful discharge, (d) just cause dismissal, (e) defamation, (f) interference with contract
or business relationship or (g) negligent or intentional infliction of emotional distress.

	12.	 	Employee further agrees and covenants not to sue the Company or any entity or individual
subject to the foregoing General Release with respect to any claims, demands, liabilities or
obligations release by this Agreement provided, however, that nothing contained in this
Agreement shall:

	 	(a)	 	prevent Employee from filing an administrative charge with the Equal Employment
Opportunity Commission or any other federal, state or local agency; or

	 	(b)	 	prevent employee from challenging, under the Older Worker’s Benefit Protection Act (29
U.S.C. § 626), the knowing and voluntary nature of his/her release of any age claims in
this Agreement in court or before the Equal Employment Opportunity Commission.

	13.	 	Notwithstanding his right to file an administrative charge with the EEOC or any other
federal, state, or local agency, Employee agrees that with his release of claims in this
Agreement, he has waived any right he may have to recover monetary or other personal relief in
any proceeding based in whole or in part on claims released by him in this Agreement. For
example, Employee waives any right to monetary damages or reinstatement if an administrative
charge is brought against the Company whether by Employee, the EEOC, or any other person or
entity, including but not limited to any federal, state, or local agency. Further, with his
release of claims in this Agreement, Employee specifically assigns to the Company his right to
any recovery arising from any such proceeding.

	14.	 	The Parties acknowledge that it is their mutual and specific intent that the above waiver
fully complies with the requirements of the Older Workers Benefit Protection Act (29 U.S.C. §
626) and any similar law governing release of claims. Accordingly, Employee hereby
acknowledges that:

	 	(a)	 	He has carefully read and fully understands all of the provisions of this Agreement and
that he has entered into this Agreement knowingly and voluntarily;

	 	(b)	 	The Severance Benefits offered in exchange for Employee’s release of claims exceed in
kind and scope that to which he would have otherwise been legally entitled absent the
execution of this Agreement;

	 	(c)	 	Prior to signing this Agreement, Employee had been advised, and is being advised by
this Agreement, to consult with an attorney of his choice concerning its terms and
conditions; and

	 	(d)	 	He has been offered at least twenty-one (21) days within which to review and consider
this Agreement.

	15.	 	The Parties agree that this Agreement shall not become effective and enforceable until the
date this Agreement is signed by both Parties or seven (7) calendar days after its execution
by Employee, whichever is later. Employee may revoke this Agreement for any reason by
providing written notice of such intent to the Company within seven (7) days after he has
signed this Agreement, thereby forfeiting Employee’s right to receive any Severance Benefits
provided hereunder and rendering this Agreement null and void in its entirety. This
revocation must be sent to the Employee’s HR representative with a copy sent to the Company
Office of General Counsel and must be received by the end of the seventh day after the
Employee signs this Agreement to be effective.

	16.	 	The Parties agree that nothing contained herein shall purport to waive or otherwise affect
any of Employee’s rights or claims that may arise after he signs this Agreement. It is
further understood by the Parties that nothing in this Agreement shall affect any rights
Employee may have under any Company sponsored Deferred Compensation Program, Executive Life
Insurance Bonus Plan, Stock Grant Award, Stock Option Grant, Restricted Stock Unit Award,
Pension Plan and/or Savings Plan (i.e., 401(k) plan) provided by the Company as of the
date of his termination, such items to be governed exclusively by the terms of the applicable
agreements or plan documents.

	17.	 	Similarly, notwithstanding any provision contained herein to the contrary, this Agreement
shall not constitute a waiver or release or otherwise affect Employee’s rights with respect to
any vested benefits, any rights he has to benefits which can not be waived by law, any
coverage provided under any Directors and Officers (“D&O”) policy, any rights Employee may
have under any indemnification agreement he has with the Company prior to the date hereof, any
rights he has as a shareholder, or any claim for breach of this Agreement, including, but not
limited to the benefits promised by the terms of this Agreement.

	18.	 	Except as provided herein, Employee acknowledges that he will not be eligible to receive or
vest in any additional stock options, stock awards or restricted stock units (“RSUs”) as of
his Effective Termination Date. Failure to exercise any vested options within the applicable
period as set for in the plan and/or grant will result in their forfeiture. Employee
acknowledges that any stock options, stock awards or RSUs held for less than the required
period shall be deemed forfeited as of the effective date of this Agreement. All terms and
conditions of such stock options, stock awards or RSUs shall not be affected by this
Agreement, shall remain in full force and effect, and shall govern the Parties’ rights with
respect to such equity based awards.

	19.	 	Employee acknowledges that his termination and the Severance Benefits offered hereunder were
based on an individual determination and were not offered in conjunction with any group
termination or group severance program and waives any claim to the contrary.

	20.	 	Employee hereby affirms and acknowledges his continued obligations to comply with the
post-termination covenants contained in his Employment Agreement, including but not limited
to, the non-compete, trade secret and confidentiality provisions. Employee acknowledges that
a copy of the Employment Agreement has been attached to this Agreement as Exhibit A or has
otherwise been provided to him and, to the extent not inconsistent with the terms of this
Agreement or applicable law, the terms thereof shall be incorporated herein by reference.
Employee acknowledges that the restrictions contained therein are valid and reasonable in
every respect and are necessary to protect the Company’s legitimate business interests.
Employee hereby affirmatively waives any claim or defense to the contrary. Employee hereby
acknowledges that the definition of Competitor, as provided in his Employment Agreement shall
include but not be limited to those entities specifically identified in the updated Competitor
List, attached hereto as Exhibit B.

	21.	 	Employee acknowledges that the Company as well as its parent, subsidiary and affiliated
companies (“Companies” herein) possess, and he has been granted access to, certain trade
secrets as well as other confidential and proprietary information that they have acquired at
great effort and expense. Such information includes, without limitation, confidential
information regarding products and services, marketing strategies, business plans, operations,
costs, current or, prospective customer information (including customer contacts,
requirements, creditworthiness and like matters), product concepts, designs, prototypes or
specifications, regulatory compliance issues, research and development efforts, technical data
and know-how, sales information, including pricing and other terms and conditions of sale,
financial information, internal procedures, techniques, forecasts, methods, trade information,
trade secrets, software programs, project requirements, inventions, trademarks, trade names,
and similar information regarding the Companies’ business (collectively referred to herein as
“Confidential Information”).

	22.	 	Employee agrees that all such Confidential Information is and shall remain the sole and
exclusive property of the Company. Except as may be expressly authorized by the Company in
writing, or as may be required by law after providing due notice thereof to the Company,
Employee agrees not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party for as long thereafter as such information remains
confidential (or as limited by applicable law) and agrees not to make use of any such
Confidential Information for Employee’s own purposes or for the benefit of any other entity or
person. The Parties acknowledge that Confidential Information shall not include any
information that is otherwise made public through no fault of Employee or other wrong doing.

	23.	 	On or before Employee’s Effective Termination Date or per the Company’s request, Employee
agrees to return the original and all copies of all things in his possession or control
relating to the Company or its business, including but not limited to any and all contracts,
reports, memoranda, correspondence, manuals, forms, records, designs, budgets, contact
information or lists (including customer, vendor or supplier lists), ledger sheets or other
financial information, drawings, plans (including, but not limited to, business, marketing and
strategic plans), personnel or other business files, computer hardware, software, or access
codes, door and file keys, identification, credit cards, pager, phone, and any and all other
physical, intellectual, or personal property of any nature that he received, prepared, helped
prepare, or directed preparation of in connection with his employment with the Company.
Nothing contained herein shall be construed to require the return of any non-confidential and
de minimis items regarding Employee’s pay, benefits or other rights of employment such as pay
stubs, W-2 forms, 401(k) plan summaries, benefit statements, etc.

	24.	 	Employee hereby consents and authorizes the Company to deduct as an offset from the
above-referenced severance payments the value of any Company property not returned or returned
in a damaged condition as well as any monies paid by the Company on Employee’s behalf (e.g.,
payment of any outstanding American Express bill).

	25.	 	Employee agrees to cooperate with the Company in connection with any pending or future
litigation, proceeding or other matter which has been or may be brought against or by the
Company before any agency, court, or other tribunal and concerning or relating in any way to
any matter falling within Employee’s knowledge or former area of responsibility. Employee
agrees to immediately notify the Company, through the Office of the General Counsel, in the
event he is contacted by any outside attorney (including paralegals or other affiliated
parties) unless (i) the Company is represented by the attorney, (ii) Employee is represented
by the attorney for the purpose of protecting his personal interests or (iii) the Company has
been advised of and has approved such contact. Employee agrees to provide reasonable
assistance and completely truthful testimony in such matters including, without limitation,
facilitating and assisting in the preparation of any underlying defense, responding to
discovery requests, preparing for and attending deposition(s) as well as appearing in court to
provide truthful testimony. The Company agrees to reimburse Employee for all reasonable out
of pocket expenses incurred at the request of the Company associated with such assistance and
testimony.

	26.	 	Employee agrees not to make any written or oral statement that may defame, disparage or cast
in a negative light so as to do harm to the personal or professional reputation of (a) the
Company, (b) its employees, officers, directors or trustees or (c) the services and/or
products provided by the Company and its subsidiaries or affiliate entities. The Parties
acknowledge that nothing contained herein shall be construed to prevent or prohibit the
Company or the Employee from providing truthful information in response to any court order,
discovery request, subpoena or other lawful request.

	27.	 	EMPLOYEE SPECIFICALLY AGREES AND UNDERSTANDS THAT THE EXISTENCE AND TERMS OF THIS AGREEMENT
ARE STRICTLY CONFIDENTIAL AND THAT SUCH CONFIDENTIALITY IS A MATERIAL TERM OF THIS AGREEMENT.
Accordingly, except as required by law or unless authorized to do so by the Company in
writing, Employee agrees that he shall not communicate, display or otherwise reveal any of the
contents of this Agreement to anyone other than his spouse, legal counsel or financial advisor
provided, however, that they are first advised of the confidential nature of this Agreement
and Employee obtains their agreement to be bound by the same. The Company agrees that
Employee may respond to legitimate inquiries regarding the termination of his employment by
stating that the Parties have terminated their relationship on an amicable basis and that the
Parties have entered into a Confidential Separation and Release Agreement that prohibits him
from further discussing the specifics of his separation. Nothing contained herein shall be
construed to prevent Employee from discussing or otherwise advising subsequent employers of
the existence of any obligations as set forth in his Employment Agreement. Further, nothing
contained herein shall be construed to limit or otherwise restrict the Company’s ability to
disclose the terms and conditions of this Agreement as may be required by business necessity.

	28.	 	In the event that Employee breaches or threatens to breach any provision of this Agreement,
he agrees that the Company shall be entitled to seek any and all equitable and legal relief
provided by law, specifically including immediate and permanent injunctive relief. Employee
hereby waives any claim that the Company has an adequate remedy at law. In addition, and to
the extent not prohibited by law, Employee agrees that the Company shall be entitled to
discontinue providing any additional Severance Benefits upon such breach or threatened breach
as well as an award of all costs and attorneys’ fees incurred by the Company in any successful
effort to enforce the terms of this Agreement. Employee agrees that the foregoing relief
shall not be construed to limit or otherwise restrict the Company’s ability to pursue any
other remedy provided by law, including the recovery of any actual, compensatory or punitive
damages. Moreover, if Employee pursues any claims against the Company subject to the
foregoing General Release, or breaches the above confidentiality provision, Employee agrees to
immediately reimburse the Company for the value of all benefits received under this Agreement
to the fullest extent permitted by law.

	29.	 	Similarly, in the event that the Company breaches or threatens to breach any provision of
this Agreement, Employee shall be entitled to seek any and all equitable or other available
relief provided by law, specifically including immediate and permanent injunctive relief. In
the event Employee is required to file suit to enforce the terms of this Agreement, the
Company agrees that Employee shall be entitled to an award of all costs and attorneys’ fees
incurred by him in any wholly successful effort (i.e. entry of a judgment in his favor) to
enforce the terms of this Agreement. In the event Employee is wholly unsuccessful, the
Company shall be entitled to an award of its costs and attorneys’ fees.

	30.	 	Both Parties acknowledge that this Agreement is entered into solely for the purpose of
terminating Employee’s employment relationship with the Company on an amicable basis and shall
not be construed as an admission of liability or wrongdoing by the Company or Employee, both
Parties having expressly denied any such liability or wrongdoing.

	31.	 	Each of the promises and obligations shall be binding upon and shall inure to the benefit of
the heirs, executors, administrators, assigns and successors in interest of each of the
Parties.

	32.	 	The Parties agree that each and every paragraph, sentence, clause, term and provision of this
Agreement is severable and that, if any portion of this Agreement should be deemed not
enforceable for any reason, such portion shall be stricken and the remaining portion or
portions thereof should continue to be enforced to the fullest extent permitted by applicable
law.

	33.	 	This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Indiana without regard to any applicable state’s choice of law provisions.

	34.	 	Employee represents and acknowledges that in signing this Agreement he does not rely, and has
not relied, upon any representation or statement made by the Company or by any of the
Company’s employees, officers, agents, stockholders, directors or attorneys with regard to the
subject matter, basis or effect of this Agreement other than those specifically contained
herein.

	35.	 	This Agreement represents the entire agreement between the Parties concerning the subject
matter hereof, shall supersede any and all prior agreements which may otherwise exist between
them concerning the subject matter hereof (specifically excluding, however, the
post-termination obligations contained in an Employee’s Employment Agreement, or any
obligation contained in any other legally-binding document), and shall not be altered,
amended, modified or otherwise changed except by a writing executed by both Parties.

PLEASE READ CAREFULLY. THIS SEPARATION AND RELEASE

AGREEMENT INCLUDES A COMPLETE RELEASE OF ALL

KNOWN AND UNKNOWN CLAIMS.

IN WITNESS WHEREOF, the Parties have themselves signed, or caused a duly authorized agent
thereof to sign, this Agreement on their behalf and thereby acknowledge their intent to be bound by
its terms and conditions.

	 	 	 
	JEFFREY KAO	 	HILL-ROM HOLDINGS, INC.
	Signed: /s/ Jeffrey Kao

	 	By: /s/ John H. Dickey
	Printed: Jeffrey Kao

	 	Title: Senior Vice President
	Dated: 2/26/2010

	 	Dated: 3/1/2010

Exhibit A

The Employment Agreement dated as of March 31, 2008 between Hill-Rom Holdings, Inc. and
Jeffery Kao is incorporated herein by reference to Exhibit 10.14 filed with the Company’s Form 10-Q
for the quarter ended March 31, 2008.

The Letter Agreement effective October 1, 2009 between Hill-Rom Holdings, Inc. and Jeffrey Kao,
which amended the aforementioned Employment Agreement, is incorporated herein by reference to
Exhibit 10.41 filed with the Company’s Form 10-K for the year ended September 30, 2009.

1

Exhibit B

The Illustrative Competitor List is included as Exhibit B to the Employment Agreement dated as
of March 31, 2008 between Hill-Rom Holdings, Inc. and Jeffery Kao which is incorporated herein by
reference to Exhibit 10.14 filed with the Company’s Form 10-Q for the quarter ended March 31, 2008.

2EX-10.1

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

($400,000,000 UNSECURED SENIOR REVOLVING CREDIT FACILITY)

This FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”), is dated as of
February 25, 2010, and entered into by and among ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD, an
exempted company incorporated in Bermuda (“Holdings”), ALLIED WORLD ASSURANCE COMPANY, LTD,
an exempted company incorporated in Bermuda (“Allied World,” and together with Holdings,
the “Borrowers”), the Lenders party hereto, and WACHOVIA BANK, NATIONAL ASSOCIATION
(“Wachovia”), as Administrative Agent, L/C Agent and Fronting Bank for the Lenders.

RECITALS

A. The Borrowers, the several lenders from time to time parties thereto (the
“Lenders”), the Administrative Agent and Bank of America, N.A., as Syndication Agent, are
party to the Credit Agreement dated as of November 27, 2007 (as amended, supplemented, restated and
modified from time to time, the “Unsecured Credit Agreement”). Capitalized terms used
herein without definition shall have the meanings given to them in the Unsecured Credit Agreement.

B. The Borrowers have requested certain amendments to the Unsecured Credit Agreement and the
Administrative Agent and the Required Lenders have agreed to make such amendments on the terms and
conditions set forth herein.

STATEMENT OF AGREEMENT

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

ARTICLE I

AMENDMENTS TO CREDIT AGREEMENT

1.1 Amendments to Section 1.1 (Defined Terms).

(a) The following definitions are hereby added to Section 1.1 of the Unsecured Credit
Agreement in appropriate alphabetical order:

“Designated Lender” means any Lender that is either a Defaulting Lender
or a Downgraded Lender.

“Downgraded Lender” means any Lender that has a non-credit enhanced
senior unsecured debt rating below A- or A3 from S&P or Moody’s, respectively.

“First Amendment” shall mean the First Amendment to Credit Agreement,
dated as of February 25, 2010, among the Borrowers, the Lenders party thereto, and
the Administrative Agent.

“First Amendment Effective Date” shall mean the date upon which the
conditions to the effectiveness of the First Amendment set forth in Article II
thereof are satisfied or waived in accordance with their terms.

“Net Termination Obligations” means, in respect of any one or more
Hedge Agreements, after taking into account the effect of any legally enforceable
netting agreement relating to such Hedge Agreements, (a) for any date on or after
the date such Hedge Agreement have been closed out and termination obligations(s)
determined in accordance therewith, such termination obligation(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Hedge Agreements, as determined based upon one or
more mid-market or other readily available quotations provided by any recognized
dealer in such Hedge Agreements, reputable pricing agent or custodian bank (which
may include a Lender or any Affiliate of a Lender).

(b) The following definitions in Section 1.1 of the Unsecured Credit Agreement are hereby
amended and restated in their entirety as follows:

“Base Rate” means the highest of (i) the per annum interest rate
publicly announced from time to time by Wachovia in Charlotte, North Carolina, to be
its prime rate (which may not necessarily be its lowest or best lending rate), as
adjusted to conform to changes as of the opening of business on the date of any such
change in such prime rate, (ii) the Federal Funds Rate plus 0.5% per annum, as
adjusted to conform to changes as of the opening of business on the date of any such
change in the Federal Funds Rate and (iii) the LIBOR Rate for an interest period of
one month plus 1.00%.

“Defaulting Lender” means any Lender that (i) has refused to fund, or
otherwise defaulted in the funding of, its Ratable Share of (A) any Borrowing
requested and permitted be made hereunder, (B) any drawing made on any Syndicated
Letter of Credit or (C) any participation interest in any Participated Letter of
Credit in accordance with the terms hereof, (ii) has notified the Borrowers, the
Administrative Agent, an Issuing Bank or any Fronting Bank in writing that it does
not intend to comply with any or all of its funding obligations under this Agreement
or has made a public statement to the effect that it does not intend to comply with
any or all of its funding obligations under this Agreement or generally under other
agreements in which it commits to extend credit, (iii) has failed, within three
Business Days after receipt of a written request from the Administrative Agent to
confirm that it will comply with the terms of this Agreement relating to its
obligation to fund prospective Loans, drawings on or participations in Letters of
Credit, (iv) has failed to pay to the Administrative Agent, any Fronting Bank or any
Lender when due an amount owed by such Lender pursuant to the terms of this
Agreement, unless such amount is subject to a good faith dispute, or (v) (a) has
been deemed, become or is insolvent or is the Subsidiary of a Person that has been
deemed, become or is insolvent or (b) has become the subject of a proceeding under
the Bankruptcy Code or under any other applicable Debtor Relief Laws, or has had a
receiver, conservator, trustee, custodian or similar official appointed for it or
any substantial part of its property, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or
appointment or is a Subsidiary of a Person that has become the subject of a
proceeding under the Bankruptcy Code or under any other applicable Debtor Relief
Laws, or has had a receiver, conservator, trustee, custodian or similar official
appointed for it or any substantial part of its property, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any
such proceeding or appointment.

“Hedge Agreement” means any interest rate, credit default or foreign
currency rate swap, future, cap, collar, hedge, forward rate or other similar
agreement or arrangement (including any option to enter into any of the foregoing)
designed to protect against fluctuations in interest rates, credit spreads or
currency exchange rates.

(c) Clause (x) in the definition of “Indebtedness” is hereby amended and restated in its
entirety as follows:

“(x) the Net Termination Obligations of such Person under any Hedge Agreements,”

1.2 Amendments to Section 3.3 (Conditions Precedent to the Issuance of Letters of
Credit). Section 3.3(ix) is hereby amended and restated in its entirety as follows:

“(ix) with respect to the issuance of a Participated Letter of Credit or the
fronting for a Non-NAIC Lender in respect of a Syndicated Letter of Credit
pursuant to Section 3.1(h), a default of any Lender’s obligations to fund
under Section 3.2(e) exists or any Lender is at such time a Designated
Lender, unless the applicable Fronting Bank has entered into satisfactory
arrangements with the Borrowers or such Lender to eliminate the applicable
Fronting Bank’s risk with respect to such Lender.”

1.3 Amendments to Section 8.1 (Fundamental Changes). Section 8.1 is hereby amended
and restated in its entirety as follows:

“Section 8.1 Fundamental Changes. Except as permitted under Section
8.4, such Borrower will not, and will not permit or cause any of its Subsidiaries
to, liquidate, wind up or dissolve, or enter into any consolidation, merger or other
combination, or agree to do any of the foregoing; provided, however,
(i) that any such Borrower or any Subsidiary may merge into or consolidate with any
other Person so long as (y) the surviving corporation is a Borrower or a Wholly
Owned Subsidiary of any Borrower (and in any event, if any Borrower is a party to
such merger or consolidation, the surviving corporation shall be a Borrower, it
being understood and agreed that in the case of a merger or consolidation between a
Subsidiary of Holdings with Holdings, the survivor corporation of such merger or
consolidation shall be Holdings), and (z) immediately after giving effect thereto,
no Default or Event of Default would occur or exist and (ii) any Subsidiary may
liquidate, wind up or dissolve if (x) such Subsidiary owns no more than a nominal
amount of assets, has no more than a nominal amount of liabilities and does not
actively conduct, transact or otherwise engage in any business or operations and (y)
such liquidation, winding up or dissolution is not materially disadvantageous to the
Lenders.”

1.4 Amendment to Section 8.2 (Indebtedness). Clause (viii) of Section 8.2 of the
Unsecured Credit Agreement is hereby amended and restated in its entirety as follows:

“(viii) obligations (contingent or otherwise) existing or arising under any
Hedge Agreement entered into by such Person in the ordinary course of business for
the purpose of protecting against fluctuations in interest rates, credit spreads or
currency exchange rates and not for purposes of speculation or taking a ‘market
view’;”

1.5 Amendments to Section 8.3 (Liens). Section 8.3 of the Unsecured Credit Agreement
is hereby amended by deleting the word “and” at the conclusion of clause (v) and substituting
therefor a comma, renumbering the existing clause (vi) as clause (vii), and adding a new clause
(vi) to read as follows:

“(vi) Liens on cash or other investment assets not at any time exceeding
$265,000,000 securing Indebtedness permitted under Section 8.2(viii); and”

1.6 Amendments to Section 9.1 (Events of Default). Section 9.1(e) of the Unsecured
Credit Agreement is hereby amended by deleting the words “net termination obligation” in clause (z)
therein and substituting therefor the words “Net Termination Obligation”.

ARTICLE II

CONDITIONS OF EFFECTIVENESS

This First Amendment shall become effective as of the date (the “First Amendment Effective
Date”) when, and only when, each of the following conditions precedent shall have been
satisfied:

(a) The Administrative Agent shall have received, dated as of the First Amendment Effective
Date, an executed counterpart hereof from each of the Borrowers and the Required Lenders;

(b) On the First Amendment Effective Date, the representations and warranties set forth in
Article III hereof shall be true and correct; and

(c) The Borrowers shall have paid all reasonable out-of-pocket costs and expenses of the
Administrative Agent in connection with the preparation, negotiation, execution and delivery of
this First Amendment (including, without limitation, the reasonable fees and out-of-pocket expenses
of counsel for the Administrative Agent with respect thereto).

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Each Borrower hereby represents and warrants, on and as of the First Amendment Effective Date,
that (i) the representations and warranties contained in the Unsecured Credit Agreement and the
other Credit Documents qualified as to materiality are true and correct and those not so qualified
are true and correct in all material respects, both immediately before and after giving effect to
this First Amendment (except to the extent any such representation or warranty is expressly stated
to have been made as of a specific date, in which case such representation or warranty is true and
correct (if qualified as to materiality) or true and correct in all material respects (if not so
qualified), in each case only on and as of such specific date), (ii) this First Amendment has been
duly authorized, executed and delivered by such Borrower and constitutes the legal, valid and
binding obligation of such Borrower enforceable against it in accordance with its terms and (iii)
no Default or Event of Default shall have occurred and be continuing on the First Amendment
Effective Date, both immediately before and after giving effect to the First Amendment.

ARTICLE IV

ACKNOWLEDGEMENT AND CONFIRMATION

Each party to this First Amendment hereby confirms and agrees that, after giving effect to
this First Amendment, and except as expressly amended hereby, the Unsecured Credit Agreement and
the other Credit Documents to which it is a party remain in full force and effect and enforceable
against such party in accordance with their respective terms and shall not be discharged,
diminished, limited or otherwise affected in any respect. Each Borrower represents and warrants to
the Lenders that as of the First Amendment Effective Date it has no knowledge of any claims,
counterclaims, offsets, or defenses to or with respect to its obligations under the Credit
Documents, or if such Borrower has any such claims, counterclaims, offsets, or defenses to the
Credit Documents or any transaction related to the Credit Documents, the same are hereby waived,
relinquished, and released in consideration of the execution of this First Amendment. This
acknowledgement and confirmation by each Borrower is made and delivered to induce the
Administrative Agent and the Lenders to enter into this First Amendment, and each Borrower
acknowledges that the Administrative Agent and the Lenders would not enter into this First
Amendment in the absence of the acknowledgement and confirmation contained herein.

ARTICLE V

MISCELLANEOUS

5.1 Governing Law. This First Amendment shall be governed by and construed and
enforced in accordance with the laws of the State of New York (including Sections 5-1401 and 5-1402
of the New York General Obligations Law, but excluding all other choice of law and conflicts of law
rules).

5.2 Credit Document. As used in the Unsecured Credit Agreement, “hereinafter,”
“hereto,” “hereof,” and words of similar import shall, unless the context otherwise requires, mean
the Unsecured Credit Agreement after amendment by this First Amendment. Any reference to the
Unsecured Credit Agreement or any of the other Credit Documents herein or in any such documents
shall refer to the Unsecured Credit Agreement and Credit Documents as amended hereby. This First
Amendment is limited to the matters expressly set forth herein, and shall not constitute or be
deemed to constitute an amendment, modification or waiver of any provision of the Unsecured Credit
Agreement except as expressly set forth herein. This First Amendment shall constitute a Credit
Document under the terms of the Unsecured Credit Agreement.

5.3 Expenses. The Borrowers shall (i) pay all reasonable fees and expenses of counsel
to the Administrative Agent, and (ii) reimburse the Administrative Agent for all reasonable
out-of-pocket costs and expenses, in each case, in connection with the preparation, negotiation,
execution and delivery of this First Amendment and the other Credit Documents delivered in
connection herewith.

5.4 Severability. To the extent any provision of this First Amendment is prohibited
by or invalid under the applicable law of any jurisdiction, such provision shall be ineffective
only to the extent of such prohibition or invalidity and only in any such jurisdiction, without
prohibiting or invalidating such provision in any other jurisdiction or the remaining provisions of
this First Amendment in any jurisdiction.

5.5 Successors and Assigns. This First Amendment shall be binding upon, inure to the
benefit of and be enforceable by the respective successors and permitted assigns of the parties
hereto.

5.6 Construction. The headings of the various sections and subsections of this First
Amendment have been inserted for convenience only and shall not in any way affect the meaning or
construction of any of the provisions hereof.

5.7 Counterparts; Integration. This First Amendment may be executed and delivered via
facsimile or electronic mail with the same force and effect as if an original were executed and may
be signed in any number of counterparts, each of which shall be an original, with the same effect
as if the signatures hereto were upon the same instrument. This First Amendment constitutes the
entire contract among the parties hereto with respect to the subject matter hereof and supersedes
any and all prior agreements and understandings, oral or written, relating to the subject matter
hereof.

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by
their duly authorized officers as of the date first above written.

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD

	 	 	 
	By:

Name:

Title:

	 	/s/ Joan H. Dillard

Joan H. Dillard

E.V.P. and Chief Financial Officer
	
 
	 	 
	By:

Name:

Title:

	 	/s/ Marchelle D. Lewis

Marchelle Lewis

V.P. and Treasurer
	
 
	 	 

	 	 	ALLIED WORLD ASSURANCE COMPANY, LTD

	 	 	 
	By:

Name:

Title:

	 	/s/ Joan H. Dillard

Joan H. Dillard

E.V.P. and Chief Financial Officer
	
 
	 	 
	By:

Name:

Title:

	 	/s/ Marchelle D. Lewis

Marchelle Lewis

V.P. and Treasurer
	
 
	 	 

	 	 	 

LENDERS: WACHOVIA BANK, NATIONAL

ASSOCIATION, as the Administrative Agent, the
L/C Agent, a Fronting Bank and as a Lender

By: /s/ William R. Goley

Name: Willian R. Goley

Title: Director

Wachovia Bank , National Association

	 	 	 	JPMORGAN CHASE BANK, N.A.

By: /s/ Melvin D. Jackson

Name: Melvin D. Jackson

Title: V.P.

SUNTRUST BANK

By: /s/ William Christensen

Name: William Christensen

Title: Director

Credit Agricole Corporate & Investment Bank

By: /s/ Charlie Kornberger

Name: Charlie Kornberger

Title: Managing Director

By: /s/ Gina Harth-Cryde

Name: Gina Harth-Cryde

Title: Managing Director

ING BANK N.V., LONDON BRANCH

By: /s/ N J Marchant

Name: N J Marchant

Title: Director

By: /s/ M E R Sherman

Name: M E R Sherman

Title: Managing Director

Bank of America, N.A.

By: /s/ Brady Fife

Name: Brady Fife

Title: Director

BARCLAYS BANK PLC

By: /s/ Nicholas A. Bell

Name: Nicholas A. Bell

Title: Director

Lloyds TSB Bank plc

By: /s/ Morgan Beanland

Name: Morgan Beanland

Title: SVP FI B033

By: /s/ Shane Klein

Name: Shane Klein

Title: SVP FI K042

The Governor and Company of the Bank of Ireland, as Lender

By: /s/ K Rockett /s/ A Donovan

Name: K Rockett            A Donovan

Title: Senior Manager Manager

 The Bank of N.T. Butterfield & Son Limited

By: /s/ Alan Day

Name: Alan Day

Title: Vice President

By: /s/ Curtis Ballantyne

Name: Curtis Ballantyne

Title: Senior Vice President

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