Document:

exv10w29

EXHIBIT
10.29

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, LTD

SECOND AMENDED AND RESTATED 2004 STOCK INCENTIVE PLAN

RSU AWARD AGREEMENT

          This RSU Award Agreement (this “RSU Agreement”) sets forth the terms and conditions of
an award (this “Award”) of restricted stock units (“RSUs”) granted to you under the
Allied World Assurance Company Holdings, Ltd Second Amended and Restated 2004 Stock Incentive Plan
(the “Plan”).

     1. The Plan. This Award is made pursuant to the Plan, the terms of which are
incorporated in this RSU Agreement. Capitalized terms used in this RSU Agreement that are not
defined in this RSU Agreement, or in the attached Glossary of Terms, have the meanings as used or
defined in the Plan.

     2. Award. The number of RSUs subject to this Award is set forth at the end of this
RSU Agreement. Each RSU constitutes an unfunded and unsecured promise of Allied World to deliver
(or cause to be delivered) to you, subject to the terms of this RSU Agreement, one Common Share
(the “Share” or the “Shares” as the context requires) (or cash equal to the Fair
Market Value thereof) on the applicable Delivery Date as provided herein. Until such delivery, 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 AWARD
AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE CHOICE OF FORUM PROVISIONS SET FORTH IN PARAGRAPH 15.

     3. Vesting and Delivery.

          (a) Vesting. Except as provided in this Paragraph 3 and in Paragraphs 4 and 6, twenty
five percent (25%) of the RSUs 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 Paragraph 3
or in Paragraph 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 Paragraph 3 and in Paragraphs 4, 6, 8 and 9,
on the Delivery Dates, the Company shall issue or transfer to you, or cause to be issued or
transferred to you, the number of Shares underlying the RSUs to be delivered, and shall either (i)
deliver, or cause to be delivered, to you a certificate or certificates therefor, registered in
your name; or (ii) 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 a Delivery 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 Delivery Date. The
Company may, at its option, deliver, or cause to be delivered, cash in lieu of all or any portion
of the Shares otherwise deliverable on a Delivery Date specified at the end of this RSU

 

 

Agreement. Such cash payment shall equal the product of the number of Shares to be delivered
on a Delivery Date and the Fair Market Value of one Share on such Delivery Date.

          (c) Death or Termination Due to Disability. Notwithstanding any other provision of
this RSU Agreement, if you die or are terminated due to Disability 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 or the representative of your
estate, as applicable, as soon as practicable after the date of 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 fiscal year immediately
following the year in which such death or termination occurred. Such issuance or transfer (or
delivery of cash in lieu thereof) shall be on the terms set forth in Paragraph 3(b) applicable to
Shares 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 Paragraph 6(b) until the regularly scheduled Delivery Date for such Shares (and/or
cash).

          (d) Delay in Delivery. Notwithstanding anything contained herein to the contrary, any
delivery of Common Shares or cash otherwise required to be made hereunder to you at any date as a
result of the termination of your Employment for any reason shall be delayed for such period of
time as may be necessary to meet the requirements of section 409A(a)(2)(B)(i) of the U.S. Internal
Revenue Code of 1986, as amended (the “Code”), and shall be delivered and/or paid on the
earliest date on which such delivery or payments can be made without violating the requirements of
section 409A(a)(2)(B)(i) of the Code.

     4. Termination of RSUs and Non-Delivery of Shares.

          (a) Unless the Committee determines otherwise, and except as provided in Paragraphs 3(c) 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 unvested 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 Paragraph 6, your
rights in respect of all of your 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 Paragraph 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)

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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 Paragraph 4(b)(iv), all of your rights with respect
to your outstanding RSUs shall terminate no later than the Delivery Date for such Shares.

     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, 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 the
Delivery Date) and the amount of cash (to the extent that cash was delivered to you) delivered with
respect to the 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).

     6. Retirement.

          (a) Notwithstanding any other provision of this RSU Agreement, but subject to Paragraph 6(b),
if your Employment with the Company is terminated by reason of Retirement, the condition set forth
in Paragraph 4(a) shall be waived with respect to your then outstanding unvested RSUs. To the
extent that the Company’s agreement herein to waive the condition set forth in Paragraph 4(a)
results in taxable income to you prior to a Delivery Date as a result of Section 457A of the Code
or any successor provision, then on your Retirement Eligibility Date, the Company shall issue or
transfer to you, or cause to be issued or transferred to you, that number of Shares having an
aggregate Fair Market Value (or their cash equivalent) equal to the amount of any such taxes so
incurred by you. The accelerated issuance or transfer (or delivery of cash in lieu thereof) set
forth in the immediately preceding sentence shall be made pursuant to the terms set forth in
Paragraph 3(b) applicable to Shares deliverable on a regularly scheduled Delivery Date. The
balance of the Shares underlying the RSUs (or their cash equivalent) shall be delivered to you on
the applicable Delivery Dates pursuant to Paragraph 3(a) notwithstanding any subsequent termination
of your Employment due to Retirement prior to any such Delivery Date. The Shares issued or
transferred to you (or cash in lieu thereof) on your Retirement Eligibility Date pursuant to this
Paragraph 6(a) shall be deemed to have been delivered with respect to each subsequent vesting
tranche on a pro rata basis, and the number of Shares (and/or cash) to be delivered on each
subsequent Delivery Date shall be reduced accordingly. Except as

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otherwise provided in this Paragraph 6(a), all other conditions of this RSU Agreement shall
continue to apply.

          (b) Without limiting the application of Paragraph 4(b) or Paragraph 4(c), your rights in
respect of any outstanding RSUs that become vested solely by reason of Paragraph 6(a) shall
terminate immediately if, following the termination of your Employment with the Company by reason
of Disability or Retirement 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. Non-transferability. Except as otherwise may be provided by the Committee, the
limitations set forth in Section 3.5 of the Plan shall apply. Any assignment in violation of the
provisions of this Paragraph 7 shall be null and void.

     8. Withholding, Consent and Legends.

          (a) The delivery of Shares is conditioned on your satisfaction of any applicable withholding
taxes (in accordance with Section 3.3 of the Plan).

          (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 (as defined in Section 3.4 of the Plan) 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.

     9. Rights of Offset. The Company shall have the right to offset, or cause to be
offset, against the obligation to deliver Shares (and/or cash) under this RSU Agreement any
outstanding amounts (including, without limitation, travel and entertainment or advance account
balances, loans or amounts repayable to the Company pursuant to tax equalization, housing,

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automobile or other employee programs) you then owe to the Company and any amounts the
Committee otherwise deems appropriate.

     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.

     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, and the Board may amend the Plan in any respect;
provided, that, notwithstanding the foregoing and Sections 1.3.1(i), 1.3.1(ii) and 3.1 of the Plan,
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 Delivery Date on which such Shares otherwise would have been delivered (and that in respect of
such Shares you may remain subject to the repayment obligations of Paragraph 5 in the circumstances
under which the Shares would not have been delivered pursuant to Paragraph 4 or Paragraph 6). 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, stock dividend,
combination or exchange of shares, merger, amalgamation, consolidation, rights offering,
separation, reorganization or liquidation, or any other change in the corporate structure or the
Shares, 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 the number and kind of Shares covered by the RSUs subject to this RSU Agreement.

     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 JURISDITION OF AND VENUE IN THE COURTS OF
BERMUDA WITH RESPECT TO ANY SUIT OR CLAIM INSTITUTED BY THE COMPANY OR YOU RELATING TO THIS AWARD.

     16. 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, LTD
 	 
	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Recipient:

Total Number of RSUs:

- RSUs to be Settled in Cash:

- RSUs to be Settled in Shares:

Date of Grant:

Delivery Dates:

	 	 	 	 	 	 	 	 	 
	Receipt
	 	 	 	 	 	 	 	 
	Acknowledge:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	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 of RSUs, 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 applicable RSU Agreement or the Plan.

          “Cause” means, in the absence of any employment agreement between you and the Company
otherwise defining Cause, (i) your conviction, whether following trial or by plea of guilty or nolo
contendere (or similar plea), in a criminal proceeding (A) on a misdemeanor charge involving fraud,
false statements or misleading omissions, wrongful taking, embezzlement, bribery, forgery,
counterfeiting or extortion; (B) on a felony charge; or (C) on an equivalent charge to those in
clauses (A) and (B) in jurisdictions which do not use those designations; (ii) your engaging in any
conduct which constitutes an employment disqualification under applicable law (including statutory
disqualification as defined under the Exchange Act); (iii) your failure to perform your duties to
the Company; (iv) your violation of any securities or commodities laws, any rules or regulations
issued pursuant to such laws, or the rules and regulations of any securities or commodities
exchange or association of which Allied World or any of its subsidiaries or affiliates is a member;
(v) your violation of any Company policy concerning hedging or confidential or proprietary
information, or your material violation of any other Company policy as in effect from time to time;
(vi) your engaging in any act or making any statement which impairs, impugns, denigrates,
disparages or negatively reflects upon the name, reputation or business interests of the Company;
or (vii) your engaging in any conduct detrimental to the Company. In the event there is an
employment agreement between you and the Company defining Cause, “Cause” shall have the meaning
provided in such agreement. The determination as to whether “Cause” has occurred shall be made by
the Committee in its sole discretion, unless otherwise provided in an employment agreement between
you and the Company. The Committee shall also have the authority in its sole discretion to waive
the consequences under the Plan or any RSU Agreement of the existence or occurrence of any of the
events, acts or omissions constituting “Cause.”

          “Client” means any client or prospective client of the Company to whom you provided services,
or for whom you 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 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 Bermuda and abroad.

          “Delivery Date” means each date specified as the Delivery Date in the Award (or as soon as
practicable, but in no case more that 10 days, thereafter).

          “Disability” means, in the absence of any employment agreement between you and the Company
otherwise defining Disability, (i) total disability as defined in the long-term disability plan of
the Company, as in effect from time to time, or (ii) if there is no such plan at

 

 

the applicable time, physical or mental incapacity as determined solely by the Committee. In
the event there is an employment agreement between you and the Company defining Disability,
“Disability” shall have the meaning provided in such agreement.

          “Fair Market Value” means, with respect to a Common Share on any day, the fair market value as
determined in accordance with a valuation methodology approved by the Committee and consistent with
the requirements of Section 409A of the Code, or if there is a public market for the shares on such
date, (i) the methodology as determined by the Committee in its sole and absolute discretion, or
(ii) if the Committee has not set forth a pricing methodology, the closing price of the Common
Shares on such stock exchange on which the shares are principally trading on the date in question,
or, if there were no sales on such date, on the closest preceding date on which there were sales of
shares.

          “Retirement” means any termination of your Employment other than for Cause following the date
you attain age 65.

          “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.exv10w30

EXHIBIT
10.30

ALLIED WORLD ASSURANCE COMPANY (U.S.) INC.

SECOND AMENDED AND RESTATED

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(Effective as of November 5, 2009)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article 1 Definitions
	 	 	1	 
	 
	 	 	 	 
	Article 2 Selection and Enrollment
	 	 	7	 
	 
	 	 	 	 
	Article 3 Deferral of Compensation
	 	 	7	 
	 
	 	 	 	 
	Article 4 Employer Contributions
	 	 	10	 
	 
	 	 	 	 
	Article 5 Short-Term Payout and Unforeseeable Financial Emergencies
	 	 	11	 
	 
	 	 	 	 
	Article 6 Benefit Distributions
	 	 	12	 
	 
	 	 	 	 
	Article 7 Forfeiture
	 	 	13	 
	 
	 	 	 	 
	Article 8 Beneficiary Designation
	 	 	14	 
	 
	 	 	 	 
	Article 9 Leave of Absence
	 	 	14	 
	 
	 	 	 	 
	Article 10 Termination, Amendment and Modification
	 	 	15	 
	 
	 	 	 	 
	Article 11 Administration
	 	 	16	 
	 
	 	 	 	 
	Article 12 Claims Procedures
	 	 	16	 
	 
	 	 	 	 
	Article 13 Trust
	 	 	17	 
	 
	 	 	 	 
	Article 14 Miscellaneous
	 	 	18	 

 

 

ALLIED WORLD ASSURANCE COMPANY (U.S.) INC.

SECOND AMENDED AND RESTATED

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Purpose

          The purpose of the Allied World Assurance Company (U.S.) Inc. Second Amended and Restated
Supplemental Executive Retirement Plan is to provide specified Benefits to a select group of senior
management who contribute materially to the continued growth, development and future business
success of Allied World Assurance Company (U.S.) Inc., a Delaware corporation, or its Affiliates.
The Plan is intended to comply with Section 409A and Section 457A and shall be interpreted and
administered, as necessary, to comply with such provisions. The Plan is also intended to permit
Affiliates (as defined below) of Allied World Assurance Company (U.S.) Inc. to provide benefits to
eligible Participants (as defined below) under one supplemental executive retirement plan.
Accordingly, effective as of January 1, 2005, the Newmarket Underwriters Insurance Company
Supplemental Executive Retirement Plan (the “NUIC SERP”) and the Allied World Assurance Company,
Ltd Supplemental Executive Retirement Plan (the “AWAC SERP”) have been combined with and merged
into the Plan, and the NUIC SERP and AWAC SERP have ceased to be operative as of such date. The
trusts under the NUIC SERP and AWAC SERP have been transferred to the Trust (as defined below)
under the Plan. This Plan supersedes and replaces all prior versions and restatements.

Article 1

Definitions

          Unless otherwise clearly apparent from the context, the following phrases and terms shall have
the meanings indicated:

          1.1 “Account” shall mean, with respect to a Participant, any or all of a Participant’s
Deferral Account or Employer Contribution Account.

          1.2 “Affected Participant” shall mean, as of a given date, a Participant (i) who is a
U.S. taxpayer on such date and (ii) whose Employer is a “non-qualified entity” (as such term is
defined in Section 457A) on such date.

          1.3 “Affiliates” shall mean an affiliate within the meaning of Rule 12b-2 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).

          1.4 “Annual Deferral Amount” shall mean for any Plan Year the portion of a
Participant’s Earnings that is deferred pursuant to Article 3.

          1.5 “Annual Installment Method” shall mean a method of distributing the balance in a
Participant’s Account wherein such balance is distributed in annual installments up to ten years,
as elected by the Participant (the “Installment Period”). The amount of each annual installment
shall be computed as follows: the amount of each annual installment shall equal (i) the vested
balance in the Account, as of the Measurement Date immediately preceding the date the installment
is paid, divided by (ii) the number of years remaining in the Installment Period.

 

 

For purposes hereof, “Measurement Date” shall mean the first day of the month next preceding
the date on which the annual installment is paid or such other date (determined by the Committee)
as of which the vested balance in an Account is determined, provided, that in no event shall the
amount of any annual installment exceed the vested balance in the Participant’s Account as of the
date on which any such installment is paid.

          1.6 “Appeals Committee” shall mean the committee designated to hear appeals pursuant
to Section 12.3.

          1.7 “Beneficiary” shall mean one or more persons, trusts, estates or other entities,
designated in accordance with Article 8, that are entitled to receive Benefits upon the death of a
Participant.

          1.8 “Beneficiary Designation Form” shall mean the form established from time to time
by the Committee that a Participant completes, signs and returns to the Committee to designate one
or more Beneficiaries.

          1.9 “Benefit” or “Benefits” shall mean the vested balance of a Participant’s
Account payable under the Plan.

          1.10 “Board” shall mean the board of directors of the Company.

          1.11 “Change in Control” shall mean and be deemed to occur if:

          (a) any “person” (as such term is defined in Section 3(a)(9) and as used in Sections 13(d) and
14(d) of the Exchange Act), excluding the Parent Company or any or its subsidiaries, a trustee or
any fiduciary holding securities under an employee benefit plan of the Parent Company or any of its
subsidiaries, an underwriter temporarily holding securities pursuant to an offering of such
securities or a corporation owned, directly or indirectly, by shareholders of Parent Company in
substantially the same proportion as their ownership of Parent Company, is or becomes the
“beneficial owner” as defined in Rule 13d-3 under the Exchange Act, directly or indirectly, of
securities of Parent Company representing 50% or more of the combined voting power of Parent
Company’s then outstanding securities (“Voting Securities”);

          (b) during any period of not more than twelve months, individuals who constitute the Board of
Parent Company as of the beginning of the period and any new director (other than a director
designated by a person who has entered into an agreement with Parent Company to effect a
transaction described in paragraphs (a) or (c) of this Section 1.11) whose election by the Board or
nomination for election by Parent Company’s 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 such time or
whose election or nomination for election was previously so approved, cease for any reason to
constitute a majority thereof;

          (c) the consummation of a merger, consolidation, amalgamation or reorganization of the Parent
Company or a court of competent jurisdiction approves a scheme of arrangement of Parent Company,
other than a merger, consolidation, amalgamation,

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reorganization or scheme of arrangement which would result in the Voting Securities of Parent
Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving entity) at least 50% of
the combined voting power of the Voting Securities of Parent Company or such surviving entity
outstanding immediately after such merger, consolidation, amalgamation, reorganization or scheme of
arrangement;

          (d) the sale or disposition by Parent Company of all or substantially all of its assets,
provided that assets representing at least 40% of the total gross fair market value of all of the
Parent Company’s assets immediately before such sale are acquired by one person or several persons
acting as a group (as provided in Treasury Regulation § 1.409A-3(i)(5)(v)(B)).

          (e) with respect to any Employer, a Change in Control would occur applying the rules in clause
(a) hereof as if such Employer were the Parent Company, which Change in Control shall apply only to
Employees of any such Employer; or

          (f) with respect to any Employer, the sale or disposition by such Employer to an unrelated
party of all or substantially all of its assets, which Change in Control shall apply only to
Employees of any such Employer.

          1.12 “Claimant” shall have the meaning set forth in Section 12.1.

          1.13 “Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time.

          1.14 “Committee” shall mean the committee designated to administer the Plan as
described in Article 11.

          1.15 “Company” shall mean Allied World Assurance Company (U.S.) Inc. and any successor
to all or substantially all of the Company’s assets or business.

          1.16 “Deferral Account” shall mean, with respect to any Participant, an account to
which shall be credited the Participant’s Annual Deferral Amounts, and any income, gains and losses
attributable thereto, less any amounts distributed to the Participant or his Beneficiary that
relate to such Deferral Account. The Deferral Account balance shall be a bookkeeping entry only
and shall be utilized solely for the measurement and determination of the amounts to be paid to a
Participant or his Beneficiary pursuant to the Plan.

          1.17 “Disability” or “Disabled” shall mean, with respect to any Participant,
an inability to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months. The Participant shall be deemed Disabled if
determined to be (i) totally disabled by the Social Security Administration or (ii) disabled under
a Company sponsored disability insurance program, provided such program’s definition of disability
complies with Section 409A.

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          1.18 “Distribution Event” shall mean the earliest to occur of a Participant’s
Retirement, Disability, Termination of Employment, or death, a Change in Control, and with respect
to an Affected Participant only, a Section 457A Payment Event, the occurrence of which entitles the
Participant (or his Beneficiary, as the case may be) to Benefits in accordance with Article 6.
Notwithstanding anything herein to the contrary, neither a Retirement nor a Termination of
Employment occurring after June 30, 2017, shall be a Distribution Event with respect to a Section
457A Grandfathered Amount payable to a Key Employee.

          1.19 “Domestic Partner” shall mean a person who has formed a domestic partnership with
a Participant where such partnership has been in existence throughout the one-year period ending on
the earlier of the Participant’s date of death or the date distribution of his Benefits commences.
A domestic partnership is: (i) a relationship between two adults of the same or opposite gender,
which includes residing together and being jointly responsible for each other’s common welfare and
financial obligations, where the Participant has attested to meeting certain criteria for domestic
partnership as determined from time to time by the Committee in accordance with applicable law; or
(ii) a domestic partnership that has been registered with a governmental entity pursuant to State
or local law authorizing such registration.

          1.20 “Earnings” means the payments expressed in monetary terms and paid (directly or
indirectly) to the Participant by the Employer of any wages, salary or leave pay up to a maximum of
$600,000 ($200,000 per year for years ending prior to January 1, 2008) or such higher maximum per
year as the Employer shall in its absolute discretion determine, but does not include any of the
following: (i) any fee or commission; or (ii) any bonus, including payments from a profit-sharing
scheme, housing benefit, cost of living allowance or other perquisite paid to a Participant; or
(iii) overtime payments, severance payments, retirement or long-service recognition payments or
health insurance premiums.

          1.21 “Election Form” shall mean the form established from time to time by the
Committee for Participants to make elections under the Plan. A Participant must complete and
submit a new Election Form for each Plan Year in which a Participant elects to defer a portion of
his Earnings and indicate the form and time at which amounts deferred during such Plan Year are to
be distributed. The Subsequent Election Limitations applies independently to each such Election
Form.

          1.22 “Employee” shall mean a person who is subject to U.S. income tax and is an
employee of any Employer.

          1.23 “Employer” shall mean the Company or any Affiliate of the Company that has been
selected by the Company to participate in the Plan.

          1.24 “Employer Contribution” means the amount the Employer contributes to the Plan
pursuant to Section 4.1 hereof for each Plan Year.

          1.25 “Employer Contribution Account” shall mean, with respect to any Participant, an
account to which shall be credited the Employer Contributions pursuant to Section 4.1, and any
income, gains and losses attributable thereto, less any amounts distributed to the Participant or
his Beneficiary that relate to such Account. The Employer Contribution

- 4 -

 

Account balance shall be a bookkeeping entry only and shall be utilized solely for the
measurement and determination of the amounts to be paid to a Participant or his Beneficiary.

          1.26 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may
be amended from time to time.

          1.27 “Key Employee” shall mean an Employee treated as a “specified employee” under
Code Section 409A(a)(2)(B)(i), i.e., a key employee of the Company or its Affiliates (as defined in
Code Section 416(i) without regard to paragraph (5) thereof), which is defined as an employee who,
at any time during the year, is (i) an officer of the Company or an Affiliate having annual
compensation in excess of $130,000 (indexed), (ii) a five percent owner of the Parent Company, or
(iii) a one percent owner of the Parent Company having annual compensation of more than $150,000.
For purposes of clause (i), no more than 50 employees (or, if lesser, the greater of three or ten
percent of the employees) shall be treated as officers. The Committee shall determine which
Employees shall be deemed Key Employees using December 31st as an identification date.

          1.28 “Key Employee Limitation” shall mean the following limitation, which is intended
to comply with Section 409A. Notwithstanding any Election Form to the contrary, distribution of
the Benefit payable by reason of a Participant’s Termination of Employment or Retirement to a
Participant who is a Key Employee shall not be made before six months after such separation from
service (or, if earlier, the Participant’s date of death). At the end of such six-month period,
payments that would have been payable but for the Key Employee Limitation shall be paid in lump sum
on the first day of the seventh month following the Participant’s Termination of Employment or
Retirement and remaining payments shall commence as indicated on the relevant Election Forms.

          1.29 “Parent Company” shall mean Allied World Assurance Company Holdings, Ltd and any
successor to all or substantially all of its assets or business.

          1.30 “Participant” shall mean any Employee (i) who is selected to participate in the
Plan, (ii) who timely submits a signed Election Form to the Committee, and (iii) who commences
participation in the Plan. A spouse or former spouse of a Participant shall not be treated as a
Participant or have an Account balance, even if such spouse or former spouse has an interest in the
Participant’s Benefits as a result of applicable law or property settlements resulting from legal
separation, divorce or dissolution of the domestic partnership.

          1.31 “Plan” shall mean the Allied World Assurance Company (U.S.) Inc. Second Amended
and Restated Supplemental Executive Retirement Plan, which shall be evidenced by this instrument,
as it may be amended from time to time.

          1.32 “Plan Year” shall mean a period beginning on January 1 of each calendar year and
continuing through December 31 of such calendar year.

          1.33 “Retirement”, “Retire(s)”, “Retiring” or “Retired” shall
mean, with respect to an Employee, a voluntary severance from employment from any Employers
participating in the Plan (for any reason other than a leave of absence, death or Disability) on or
after the

- 5 -

 

attainment of age sixty five (65); provided that in order for Retirement to be a Distribution
Event such severance from employment must also constitute a Separation from Service.

          1.34 “Section 409A” shall mean Code Section 409A and Treasury regulations and guidance
promulgated thereunder, as the same may be amended from time to time, and any successor statute to
such section of the Code.

          1.35 “Section 457A” shall mean Code Section 457A and Treasury regulations and guidance
promulgated thereunder, as the same may be amended from time to time, and any successor statute to
such section of the Code.

          1.36 “Section 457A Grandfathered Amount” shall mean that portion of an Affected
Participant’s Account that was vested prior to January 1, 2009.

          1.37 “Section 457A Payment Event” shall mean, with respect to any Section 457A
Grandfathered Amount, October 1, 2017 (to ensure payment of such amounts pursuant to Article 6 no
later than December 31, 2017), and with respect to that portion of an Affected Participant’s
Account that is not a Section 457A Grandfathered Amount, December 31 of the Plan Year in which such
portion vests.

          1.38 “Separation from Service” shall mean, as set forth in Treasury Regulation
1.409A-1(h), a termination of employment after which the Employee and each Employer of such
Employee reasonably anticipate that the level of bona fide services the Employee would perform
after the date of such Termination of Employment (whether as an employee or as an independent
contractor) would permanently decrease to less than 50 percent (50%) 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 to the applicable Employer if the
Employee has been providing services to such Employer less than 36 months).

          1.39 “Short-Term Payout” shall mean the Benefit set forth in Section 5.1.

          1.40 “Subsequent Election Limitations” shall mean the following limitations applicable
to any Participant’s subsequent election to delay receipt of Benefits or to change the form of such
payment: (i) such election may not take effect until at least 12 months after the date on which the
election is made; (ii) with respect to an election related to Benefits payable for reasons other
than death, Disability or Unforeseeable Emergency, no payments specified in a subsequent election
may be made during the five-year period commencing on the date distribution of benefits would have
commenced but for such subsequent election; and (iii) with respect to a subsequent election related
to Benefits payable pursuant to a fixed schedule or payable at a specified time, such election may
not be made less than 12 months prior to the date of the first scheduled payment. For purposes
hereof, installment payments shall be treated as a single payment.

          1.41 “Termination of Employment”, “Terminate Employment” or “Terminating
Employment” shall mean the severing of employment with any Employer participating in the Plan,
voluntarily or involuntarily, for any reason other than Retirement, Disability, death or an

- 6 -

 

authorized leave of absence, provided that in order for Termination of Employment to be a
Distribution Event such severing of employment must also constitute a Separation from Service.

          1.42 “Trust” shall mean the Trust Agreement under the Allied World Assurance Company
(U.S.) Inc. Supplemental Executive Retirement Plan with Reliance Trust Company effective as of
December 31, 2006, as amended from time to time, and any successor trust thereto.

          1.43 “Unforeseeable Emergency” shall mean a severe financial hardship to a Participant
resulting from an illness or accident of the Participant, the Participant’s spouse or a dependent
(within the meaning of Code Section 152(a)) of the Participant, loss of the Participant’s property
due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant, or such other circumstances or events, if any,
that are included within the meaning of “unforeseeable emergency” under Section 409A.

Article 2

Selection and Enrollment

          2.1 Selection of Participants by Committee. Participants shall be limited to a select
group of senior management Employees, as determined by the Committee.

          2.2 Initial Enrollment Requirements. As a condition to participation, each
Participant shall complete, execute and return to the Committee, an Election Form, with respect to
services performed subsequent to such election, within 30 days after being selected to participate
in the Plan. Any Participant may, on or before December 31, 2008, change his elections with
respect to amounts deferred under the Plan on or before December 31, 2008, without being subject to
the Subsequent Election Limitations; provided that such election may not apply to payments that
would otherwise be payable in the year in which the new election is made or cause payments to be
made in the year in which the new election is made that would otherwise be payable in a later year.
The Committee shall establish from time to time such other enrollment requirements as it
determines are necessary, convenient or appropriate to carry out any of the purposes or the intent
of the Plan or to better assure the Plan’s compliance with Section 409A. Participation shall
commence as soon as practicable following timely receipt of all required enrollment materials.

          2.3 Termination of Participation and/or Deferrals. Any Employee who becomes a
Participant shall remain a Participant until the earliest to occur of his Termination of
Employment, Disability, Retirement or death. However, if the Committee determines in good faith
that a Participant no longer qualifies as a member of a select group of management or highly
compensated employees, as membership in such group is determined in accordance with Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA, the Participant’s participation in the Plan will cease on
December 31st of the Plan Year in which such determination is made.

- 7 -

 

Article 3

Deferral of Compensation

          3.1 Amount of Deferral. Subject to Section 3.2, each Plan Year a Participant may
elect to defer his Earnings in one percent (1%) increments up to a maximum percentage of
twenty-five percent (25%) of such Earnings or as shall otherwise be determined for each Participant
by the Committee in its sole discretion. Except as otherwise provided herein, any such election
shall be irrevocable. With respect to Plan Years commencing on or after January 1, 2010, no
Affected Participants may elect to defer Earnings under the Plan.

          3.2 Election to Defer. Except as provided below, elections to defer Earnings must be
made in the form of an irrevocable deferral election, by timely delivering an Election Form to the
Committee, in accordance with its rules and procedures, before the end of the Plan Year preceding
the Plan Year for which the election is made. If no such Election Form is timely delivered for a
Plan Year, the Annual Deferral Amount shall be zero for that Plan Year. Such Election Form shall
indicate the form and time at which amounts deferred during such Plan Year are to be distributed.
Subject to the Subsequent Election Limitations, such distribution election shall govern the
deferred amounts.

          3.3 Withholding of Annual Deferral Amounts. For each Plan Year, the Annual Deferral
Amount shall be withheld from each regularly scheduled Employer payroll in equal amounts, as
adjusted from time to time for changes in Earnings. Any Earnings not paid in scheduled payroll
shall be withheld at the time the Earnings are or otherwise would be paid to the Participant.

          3.4 Investment of Trust Assets. The trustee of the Trust shall be authorized, upon
written instructions received from the Committee or an investment manager appointed by the
Committee, to invest and reinvest the assets of the Trust in accordance with the applicable Trust
Agreement, including the disposition of stock and reinvestment of the proceeds in one or more
investment vehicles designated by the Committee.

          3.5 Vesting of Deferral and Employer Contributions Accounts. A Participant shall at
all times be 100% vested in his Deferral Account. A Participant’s vested interest in his Employer
Contribution Account shall be determined under Section 4.3.

          3.6 Crediting/Debiting of Account Balances. Amounts shall be credited or debited to a
Participant’s Account in accordance with the following rules:

               3.6.1 Election of Measurement Funds. A Participant, in connection with his initial
deferral election pursuant to Section 2.2, shall elect, on an Election Form, one or more
Measurement Funds (defined in Section 3.6.3) to be used to determine the additional amounts to be
credited to his Account. Once each calendar month, a Participant may change the Measurement
Fund(s) to be used to determine the additional amounts to be credited to his Account, or the
portion of his Account allocated to each previously or newly elected Measurement Fund.

               3.6.2 Proportionate Allocation. In making an election described in Section 3.6.1, the
Participant shall specify on the Election Form, in increments of one percentage point (1%), the
percentage of his Account to be allocated to a Measurement Fund (as if the

- 8 -

 

Participant was making an investment in that Measurement Fund with that portion of his
Account).

               3.6.3 Measurement Funds. The Participant may elect one or more of the measurement
funds selected by the Committee (the “Measurement Funds”) for the purpose of crediting additional
amounts to his Account. The Committee may, in its sole discretion, discontinue, substitute or add
a Measurement Fund at any time.

               3.6.4 Crediting or Debiting Method. The performance of each Measurement Fund shall be
determined by the Committee, in its reasonable discretion, based on the performance of the
Measurement Funds themselves. A Participant’s Deferral Account balance shall be credited or
debited on a daily basis based on the performance of each applicable Measurement Fund as though (i)
a Participant’s Deferral Account was invested in the Measurement Fund(s) selected by the
Participant and (ii) the portion of the Annual Deferral Amount that was actually deferred during
any calendar month was invested in such Measurement Fund(s) in the percentages applicable to such
calendar month, no later than the close of business on the last business day of such calendar
month, at the closing price on such date. A Participant’s Employer Contribution Account balance
shall be credited or debited on a daily basis based on the performance of each applicable
Measurement Fund as though (i) a Participant’s Employer Contribution Account was invested in the
Measurement Fund(s) selected by the Participant and (ii) the portion of the Employer Contribution
that was actually deferred during any calendar month was invested in such Measurement Fund(s) in
the percentages applicable to such calendar month, no later than the close of business on the last
business day of such calendar month, at the closing price on such date.

               3.6.5 No Actual Investment. Notwithstanding any other provision of the Plan to the
contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant’s
election of any such Measurement Fund, the allocation to his Account thereto, the calculation of
additional amounts and the crediting or debiting of such amounts to a Participant’s Account shall
not be considered or construed in any manner as an actual investment of his Account in any such
Measurement Fund. If the Committee or the trustee of the Trust, in its own discretion, decides to
invest funds in any or all of the Measurement Funds, no Participant shall have any rights in or to
such investments. Without limiting the foregoing, a Participant’s Account shall at all times be a
bookkeeping entry only and shall not represent any investment made on his behalf by the Company or
the trustee, and the Participant shall at all times remain an unsecured creditor of the Company.

          3.7 FICA and Other Taxes. In accordance with Section 409A, for each Plan Year in
which an Annual Deferral Amount is being withheld with respect to a Participant, the Participant’s
Employer shall withhold from that portion of the Participant’s compensation that is not being
deferred, in a manner determined by the Employer, the Participant’s share of FICA, if applicable,
and any other applicable employment taxes on such Annual Deferral Amount. If necessary, the
Committee may reduce the Annual Deferral Amount in order to comply with this Section 3.7, provided
such amount does not exceed the aggregate of the FICA amount and the applicable income tax
withholding related to such FICA amount.

- 9 -

 

          3.8 Withholding on Distributions. The Employer, or the trustee of the Trust, shall
withhold from any payments made to a Participant under the Plan all federal, state and local
income, employment and other taxes that the Employer or the trustee of the Trust, as applicable,
deems necessary or appropriate to be withheld, in connection with such payments, in amounts and in
a manner to be determined in the sole discretion of the Employer or the trustee of the Trust, as
the case may be.

Article 4

Employer Contributions

          4.1 Employer Contributions. Prior to April 1, 2008, each Participant’s Employer
Contribution Account shall be credited with Employer Contributions equal to no less than ten
percent (10%) of the Participant’s Earnings for the applicable period, as determined by the
Committee. Effective April 1, 2008, each Participant’s Employer Contribution Account shall be
credited with Employer Contributions equal to ten percent (10%) of the Participant’s Earnings for
the applicable period, but only with respect to the Participant’s aggregate Earnings during a
calendar year in excess of the applicable annual compensation limit under Section 401(a)(17) of the
Code ($245,000 in 2009). Employer Contributions shall be credited to a Participant’s Account on a
monthly basis, but in no event later than fifteen (15) days after the close of each month. Amounts
shall be credited or debited to the Participant’s Employer Contribution Account in accordance with
Section 3.6.

          4.2 Distribution. If a Participant did not properly complete and deliver an Election
Form for a Plan year, the vested Employer Contributions with respect to such Plan Year shall be
distributed from the Employer Contribution Account in a lump sum on the earliest Distribution
Event. However, to the extent the Employer Contribution is distributed pursuant to a Short-Term
Payout election under Section 5.1 prior to the date such Employer Contributions become vested, then
such Employer Contribution Account shall be distributed within 90 days after the Participant
becomes vested in such Employer Contributions.

          4.3 Vesting of Employer Contributions. Upon (i) Retiring after attaining age sixty
five (65), (ii) terminating employment on account of death or Disability, (iii) termination of the
Plan or (iv) a Change in Control, a Participant shall become fully vested in his Employer
Contributions Account. A Participant who terminates employment prior to becoming vested under the
preceding sentence shall have, as of the date of such termination, a non-forfeitable right to the
following percentage of Employer Contributions.

	 	 	 	 	 
	Years of Continuous Employment	 	Vested Percentage	 
	Less than 1
	 	 	0	 
	At least 1 but less than 2
	 	 	20	 
	At least 2 but less than 3
	 	 	40	 
	At least 3 but less than 4
	 	 	60	 
	At least 4 but less than 5
	 	 	80	 
	Upon completion of 5
	 	 	100	 

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          Upon Terminating Employment, a Participant shall forfeit all unvested Employer Contributions
credited to his Employer Contributions Account. Notwithstanding anything herein to the contrary,
any Employee who is a Participant as of December 31, 2005 shall be credited with any continuous
service with American International Group, Inc., The Chubb Corporation, Swiss Re or the Affiliates
of any of them, provided, that such service ceased immediately prior to the Participant’s
commencement of employment with the Company or any of its Affiliates. Notwithstanding anything
herein to the contrary, the Committee at any time and from time to time may order that all or any
part of a Participant’s Employer Contribution Account shall become vested and no longer subject to
forfeiture, and may order payment of the amounts so vested on the dates specified in such orders,
if the Committee finds such action appropriate in the circumstances.

          4.4 Impact of Reemployment on Vesting. A Participant who is rehired by an Employer
after his Termination of Employment shall not be entitled to amounts forfeited under Section 4.3
prior to his reemployment.

          4.5 FICA and Other Taxes on Employer Contributions. In accordance with Section 409A,
for each Plan Year in which a Participant becomes vested in Employer Contributions credited to his
Employer Contribution Account, the Participant’s Employer shall withhold from that portion of the
Participant’s Earnings that is not being deferred, in a manner determined by the Employer, the
Participant’s share of FICA, if applicable, and any other applicable employment taxes on the
Employer Contributions vesting in such year. If necessary, the Committee may reduce the Annual
Deferral Amount in order to comply with this Section 4.5, provided such amount does not exceed the
aggregate of the FICA amount and the income tax withholding related to such FICA amount.

Article 5

Short-Term Payout and Unforeseeable Financial Emergencies

          5.1 Short-Term Payout. In connection with each election to defer an Annual Deferral
Amount, a Participant may elect to receive such Annual Deferral Amount as a “Short-Term Payout” by
indicating the specified date to which such amount is to be paid on the Election Form. The
Short-Term Payout shall be a lump sum payment in an amount equal to the Annual Deferral Amount plus
amounts credited or debited pursuant to Section 3.6 on that amount. The Participant’s Account
shall be valued as of December 31st of the Plan Year preceding the Plan Year in which such
distribution shall be made. Short-Term Payouts shall be distributed within 90 days after the first
day of any Plan Year designated by the Participant that is at least five Plan Years after the Plan
Year with respect to which the Annual Deferral Amount is actually deferred.

               5.1.1 Election Changes. Subject to the Subsequent Election Limitations, any
Participant who elects a Short-Term Payout may make another election to further defer the
distribution of such Short-Term Payout by submitting to the Committee either a new Election Form
(during the open enrollment period) or a distribution re-election form (at any time during the Plan
Year).

- 11 -

 

               5.1.2 Distribution Event Takes Precedence. Should a Distribution Event occur prior to
a scheduled Short-Term Payout, then the provisions of Article 6 shall govern the distribution of
Benefits.

          5.2 Unforeseeable Financial Emergencies. Upon approval by the Committee, a
Participant may withdraw all or any portion of his vested Account balance for an Unforeseeable
Emergency. The amounts distributed with respect to an Unforeseeable Emergency may not exceed the
amounts necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into account the extent to
which such hardship is or may be relieved through reimbursement or compensation by insurance or
otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such
assets would not itself cause severe financial hardship) or by cessation of deferrals under this
Plan. Notwithstanding Section 3.2, if the Committee approves a distribution, the Participant’s
deferrals under the Plan shall cease. A Participant electing a withdrawal under this Section 5.2
may designate the Account or Accounts from which any amounts so distributed shall be taken. If no
election is made, amounts distributed shall be taken first from the Participant’s Deferral Account
and then from the Participant’s Employer Contribution Account (to the extent vested).

Article 6

Benefit Distributions

          6.1 Distribution Event. Except as otherwise provided in Article 10, the Participant’s
Benefit shall be distributed upon the occurrence of a Distribution Event in accordance with the
provisions of this Article 6, subject to the Key Employee Limitation.

               6.1.1 Retirement Benefit. For each Plan Year in which the Participant makes an
election to defer under Section 3.2, the Participant may elect on an Election Form to receive at
Retirement amounts deferred and contributions credited to his Account for such Plan Year in either
(i) a lump sum, or (ii) pursuant to the Annual Installment Method over a period of up to ten years.
If a Participant does not make an affirmative election in any Plan Year, the Participant will be
deemed to have elected a lump sum distribution with respect to amounts deferred that Plan Year.
Subject to the Subsequent Election Limitations, a Participant may change any prior election
annually to an allowable method of distribution by submitting to the Committee either a new
Election Form (during open enrollment) or a distribution re-election form (at any point during the
Plan Year).

               6.1.2 Termination Benefit. If a Participant Terminates Employment, his vested Account
shall be paid in a lump sum.

               6.1.3 Disability Benefit. If a Participant becomes Disabled, either before or after
Retirement or Terminating Employment, his vested Account (or remaining portion thereof) shall be
paid in a lump sum.

               6.1.4 Death Benefit. Upon a Participant’s death, his vested Account shall be paid in
a lump sum to his Beneficiary. However, if a Participant dies before his Benefit is paid in full,
any undistributed Benefit payments shall continue and shall be paid to the

- 12 -

 

Participant’s Beneficiary on the same schedule as the Benefit would have been paid to the
Participant had the Participant survived.

               6.1.5 Section 457A Payment Event. Upon a Section 457A Payment Event, the portion of
an Affected Participant’s Account to which such Section 457A Payment Event applies shall be paid in
a lump sum.

          6.2 Valuation and Commencement of Benefits Payable in Cash. To the extent applicable,
a Participant’s Account will be valued and Benefits payable in cash shall commence as follows:

               6.2.1 Valuation and Commencement of Lump Sum. The Participant’s Account will be
valued as of the first day of the month following a Distribution Event. Subject to the Key
Employee Limitation, Benefit payments will begin within 90 days following the Distribution Event,
or if earlier, March 15th of the Plan Year immediately following the Plan Year in which
such Distribution Event occurs; provided, however, that in no event may the Participant or his
Beneficiary at such time, directly or indirectly, designate the taxable year of the payments.

               6.2.2 Valuation and Commencement of Installments. The Participant’s Account will be
valued as of the first day of the month following a Distribution Event. Subject to the Key
Employee Limitation, Benefit payments will begin on the first day of the third month following the
Distribution Event. In the event a Section 457A Payment Event occurs prior to the payment of all
installments, all such installments remaining unpaid shall be paid in a lump sum on the payment
date determined pursuant to Section 6.2.1 above as if the Distribution Event for such unpaid
installments were such Section 457A Payment Event, or if later, for a Key Employee only, the
six-month anniversary of such Key Employee’s Retirement.

          6.3 Automatic Cash-out of Small Accounts. Notwithstanding anything in the Plan or any
Election Form to the contrary, if the value of a Participant’s vested Account is less than $100,000
at any point in time after the date of a Distribution Event, then such Account shall be paid in a
lump sum within 90 days of the Distribution Event or the date the balance in such Account drops
below $100,000. For purposes hereof, the Participant’s Account will be valued as of the first day
of each month following such Distribution Event.

Article 7

Forfeiture

          7.1 Forfeiture. Notwithstanding any other provisions of the Plan to the contrary, a
Participant shall forfeit all vested and unvested Employer Contributions if he:

          (a) (i) willfully fails (except where due to physical or mental incapacity), willfully
neglects or willfully refuses to substantially perform his duties; (ii) commits any willful or
intentional act with regard to the Employer that has the effect of injuring the reputation or
business of the Employer in a material manner; (iii) is convicted of, or pleads guilty or nolo
contendere to, the commission of a criminal act that would constitute a felony in the United

- 13 -

 

States; or (iv) commits an act of fraud, embezzlement or material dishonesty against the
Employer (other than a good faith expense account dispute); or

          (b) at any time improperly discloses to others any trade secrets or other confidential
information, including customer lists, relating to the Company or its Affiliates or to the business
of the Company or its Affiliates.

Article 8

Beneficiary Designation

          8.1 Beneficiary. Each Participant shall have the right, at any time, to designate a
Beneficiary to receive any Benefits payable under the Plan upon his death.

          8.2 Beneficiary Designation. A Participant may designate a Beneficiary by completing
a Beneficiary Designation Form, and returning it to the Committee. A Participant shall have the
right to change a Beneficiary by completing, signing and otherwise complying with the terms of the
Beneficiary Designation Form and the Committee’s rules and procedures, as in effect from time to
time. Upon the acceptance by the Committee of a new Beneficiary Designation Form, all Beneficiary
designations previously filed shall be canceled. The Committee shall be entitled to rely on the
last properly executed Beneficiary Designation Form filed by the Participant and accepted by the
Committee prior to his death. No designation or change in designation of a Beneficiary shall be
effective until received and acknowledged in writing by the Committee.

          8.3 No Beneficiary Designation. If a Participant fails to designate a Beneficiary as
provided in Sections 8.1 and 8.2 or if all designated Beneficiaries predecease the Participant or
die prior to complete distribution of the Participant’s Benefits, the Participant’s surviving
spouse or Domestic Partner, if any, shall be deemed the designated Beneficiary. If the Participant
has no surviving spouse or Domestic Partner, the Benefits remaining to be paid to a Beneficiary
shall be payable to the executor or personal representative of the Participant’s estate.

          8.4 Doubt as to Beneficiary. If the Committee has any doubt as to the proper
Beneficiary to receive payments pursuant to the Plan, the Committee may cause the Participant’s
Employer to withhold such payments until this matter is resolved to the Committee’s satisfaction.

          8.5 Discharge of Obligation. The payment of Benefits under the Plan to a Beneficiary
shall fully and completely discharge all Employers and the Committee from all further obligations
under the Plan with respect to the Participant.

Article 9

Leave of Absence

          9.1 Paid Leave of Absence. A Participant, who is authorized by his Employer to take a
paid leave of absence, shall continue to be considered employed by the Employer, and the Annual
Deferral Amount shall continue to be withheld during such paid leave of absence in accordance with
Section 3.3.

- 14 -

 

          9.2 Unpaid Leave of Absence. Any Participant who is authorized by his Employer to
take an unpaid leave of absence shall continue to be considered employed by the Employer and upon
the Participant’s return to a paid employment status, deferrals shall resume for the remaining
portion of the Plan Year in which the expiration or return occurs, based on the deferral election,
if any, made for that Plan Year. If no election was made for that Plan Year, no deferral shall be
withheld.

          9.3 Leave of Absence Exceeding Six Months. Notwithstanding Sections 9.1 or 9.2
hereof, if the period of a leave of absence (whether paid or unpaid) exceeds six months and the
Participant’s right to reemployment is not provided either by law or contract, the Participant’s
employment relationship is deemed to terminate on the first date immediately following such
six-month period and the payment of Benefits shall commence in accordance with Article 6.

Article 10

Termination, Amendment and Modification

          10.1 Termination. The Company intends to continue the Plan indefinitely. However,
the Company by action of its Board or a duly authorized committee thereof, in accordance with its
by-laws, reserves the right to terminate the Plan at any time; provided that no such termination
shall deprive any Participant or Beneficiary of a right accrued under the Plan prior to the date of
termination. A Participant’s entire Account shall then be distributed to the Participant (or
Beneficiary) in a lump sum upon the Company’s termination and liquidation of the Plan, provided
that (i) the termination and liquidation do not occur proximate to a downturn in the financial
health of the Company; (ii) the Company terminates and liquidates all agreements, methods, programs
and other arrangements sponsored by the Company that would be aggregated with the Plan and any
other terminated and liquidated agreements, methods, programs and other arrangements under Section
409A of the Code if the Participant had deferrals of compensation under all the agreements,
methods, programs and other arrangements that are terminated and liquidated; (iii) no payments in
liquidation of the Plan are made within 12 months of the date the Company takes all necessary
actions to irrevocably terminate and liquidate the Plan other than payments that would be payable
under the terms of the Plan if the action to terminate and liquidate the Plan had not occurred;
(iv) all payments are made within 24 months of the date the Company takes all necessary actions to
irrevocably terminate and liquidate the Plan; and (v) the Company does not adopt a new plan that
would be aggregated with the Plan or any other terminated and liquidated plan under Section 409A of
the Code if the Participant participated in both plans, at any time within three years following
the date the Company takes all necessary actions to irrevocably terminate and liquidate the Plan.

          10.2 Amendment. The Company may, at any time, amend or modify the Plan in whole or in
part by action of its Board, a committee thereof, or the Committee. However, no such amendment or
modification may operate to (i) decrease the value of a Participant’s Account balance computed as
of the date the amendment or modification is approved, or (ii) effect the timing or form of the
distribution of an Account balance that is scheduled to commence on or before such date in a manner
that would violate Section 409A.

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          10.3 Effect of Benefit Payment. The full payment of the Benefit under Article 6,
shall completely discharge all obligations to a Participant and his designated Beneficiaries under
the Plan.

Article 11

Administration

          11.1 Committee Duties. The Plan shall be administered by a Committee, which shall
consist of the Board or such committee, as the Board shall appoint. Members of the Committee may
be Participants. The Committee shall have the discretion and authority to (i) make, amend,
interpret, and enforce all appropriate rules and regulations for the administration of this Plan
and (ii) decide or resolve any and all questions involving the interpretation of the Plan. Any
individual serving on the Committee who is a Participant shall not vote or act on any matter
relating solely to him. When making a determination or calculation, the Committee shall be
entitled to rely on information furnished by a Participant or the Company.

          11.2 Agents. In the administration of the Plan, the Committee may, from time to time,
employ agents and delegate to them such administrative duties as it sees fit (including acting
through a duly appointed representative) and may from time to time consult with counsel who may be
counsel to any Employer.

          11.3 Binding Effect of Decisions. The decision or action of the Committee with
respect to any question arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder shall be final and
conclusive and binding upon all persons having any interest in the Plan.

          11.4 Indemnity of Committee. All Employers shall indemnify and hold harmless the
members of the Committee, and any Employee to whom the duties of the Committee may be delegated,
against any and all claims, losses, damages, expenses or liabilities arising from any action or
failure to act with respect to this Plan, except in the case of willful misconduct by the Committee
or any of its members or any such Employee.

          11.5 Employer Information. To enable the Committee to perform its functions, each
Employer shall supply full and timely information to the Committee on all matters relating to the
compensation of its Participants, the date and circumstances of the Retirement, Disability, death
or Termination of Employment of its Participants, and such other pertinent information as the
Committee may reasonably require.

Article 12

Claims Procedures

          12.1 Presentation of Claim. Any Participant or Beneficiary of a deceased Participant
(such Participant or Beneficiary being referred to as a “Claimant”) may deliver to the Committee a
written claim for a determination with respect to the amounts distributable to such Claimant from
the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim
must be made within 60 days after such notice was received by the Claimant. All other claims must
be made within 180 days of the date on which the event that caused the

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claim to arise occurred. The claim must state with particularity the determination desired by
the Claimant.

          12.2 Notification of Decision. The Committee shall consider a Claimant’s claim and
make a final decision within 60 days of receipt of such claim based on all comments, documents,
records, and other information submitted. This period may be extended by an additional 60 days for
matters beyond the control of the Plan. The Committee shall notify the Claimant via electronic
means or in writing that (i) the Claimant’s requested determination has been made, and that the
claim has been allowed in full, or (ii) the Committee has reached a conclusion contrary, in whole
or in part, to the Claimant’s requested determination. If any part of the claim is denied, such
notice must set forth in a manner calculated to be understood by the Claimant (i) the specific
reason(s) for the denial of the claim, or any part thereof, (ii) specific reference(s) to pertinent
provisions of the Plan upon which such denial was based, (iii) a description of any additional
material or information necessary for the Claimant to perfect the claim, and an explanation of why
such material or information is necessary, and (iv) an explanation of the claim review procedures
set forth in Sections 12.3 and 12.4.

          12.3 Review of Denied Claim. Within 60 days after receiving a notice from the
Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly
authorized representative) may file with a committee designated by the Board to determine such
appeals (the “Appeals Committee”) a written request for a review of the denial of the claim. On
receipt of such an appeal, a Claimant (or the Claimant’s duly authorized representative) will be
given the opportunity to review and receive copies of any documents pertinent to the claim. Not
later than 30 days after the review procedure commences, a Claimant (or the Claimant’s duly
authorized representative) may request a hearing with the Appeals Committee, which the Appeals
Committee, in its sole discretion, may grant.

          12.4 Decision on Review. The Appeals Committee will render a final decision within 60
days of receipt of the appeal, unless special circumstances require an extension of time to 120
days. The Appeals Committee will base its decision on all relevant information submitted by a
Claimant (or the Claimant’s duly authorized representative) without regard to whether such
information was previously submitted or considered. Such decision must be written in a manner
calculated to be understood by the Claimant, and it must contain (i) specific reasons for the
decision, (ii) specific reference(s) to the pertinent Plan provisions upon which the decision was
based, and (iii) such other matters as the Appeals Committee deems relevant.

          12.5 Legal Action. A Claimant’s compliance with the foregoing provisions of this
Article 12 is a mandatory prerequisite to a Claimant’s right to commence any legal action with
respect to any claim for Benefits under this Plan.

Article 13

Trust

          13.1 Establishment of the Trust. The Company shall establish the Trust, and each
Employer shall at least annually transfer over to the Trust such assets as the Employer determines,
in its sole discretion, are necessary to provide, on a present value basis, for its

- 17 -

 

respective future liabilities created with respect to the Annual Deferral Amounts for such
Employer’s Participants for all periods prior to the transfer, as well as any debits and credits to
the Participants’ Account balances for all periods prior to the transfer, taking into consideration
the value of the assets in the trust at the time of the transfer.

          13.2 Interrelationship of the Plan and the Trust. The provisions of the Plan shall
govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions
of the Trust shall govern the rights of the Employers and the creditors of the Employers to the
assets transferred to the Trust. Each Employer shall at all times remain liable to carry out its
obligations under the Plan.

          13.3 Distributions from the Trust. Each Employer’s obligations under the Plan may be
satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such
distribution shall reduce the Employer’s obligations under the Plan.

Article 14

Miscellaneous

          14.1 Status of Plan. The Plan is intended (i) to be a plan that is not qualified
within the meaning of Code Section 401(a) and is unfunded and is maintained by an employer
primarily for the purpose of providing deferred compensation for a select group of management or
highly compensated employees within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1),
and (ii) to comply with Section 409A. The Plan shall be administered and interpreted to the extent
possible in a manner consistent with such intent.

          14.2 Unsecured General Creditor. Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests or claims in any property
or assets of an Employer. For purposes of the payment of Benefits under this Plan, any and all of
an Employer’s assets shall be, and remain, the general, unpledged unrestricted assets of the
Employer. An Employer’s obligation under the Plan shall be merely that of an unfunded and
unsecured promise to pay money or distribute Shares, as the case may be, in the future.

          14.3 Employer’s Liability. The Employers shall be jointly and severally liable for
all Benefits under the Plan, provided that the Employers’ liability for the payment of Benefits
shall be defined only by the Plan and related forms. No Employer shall have any obligation to a
Participant under the Plan except as expressly provided in the Plan and related forms.

          14.4 Nonassignability. Neither a Participant nor any other person shall have any
right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber,
transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any,
payable hereunder, or any part thereof, which are, and all rights to which are expressly declared
to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual
payment, be (i) subject to seizure, attachment, garnishment or sequestration for the payment of any
debts, judgments, alimony or separate maintenance owed by a Participant or any other person, (ii)
transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy
or insolvency, or (iii) transferable to a spouse or Domestic Partner as a result of a property
settlement or otherwise.

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          14.5 Not a Contract of Employment. The terms and conditions of the Plan shall not be
deemed to constitute a contract of employment between any Employer and a Participant. Nothing in
this Plan shall be deemed to give a Participant the right to be retained in the service of any
Employer as an Employee, or to interfere with the right of any Employer to discipline or discharge
the Participant at any time.

          14.6 Furnishing Information. A Participant or his Beneficiary will cooperate with the
Committee by furnishing any and all information requested by the Committee and take such other
actions as may be requested in order to facilitate the administration of the Plan and the payments
of Benefits hereunder, including, but not limited to, taking such physical examinations as the
Committee may deem necessary.

          14.7 Terms. Whenever any words are used herein in the masculine, they shall be
constructed as though they were in the feminine in all cases where they would apply, and whenever
any words are used herein in the singular or in the plural, they shall be construed as though they
were used in the plural or the singular, as the case may be, in all cases when they would so apply.

          14.8 Captions. The captions of the articles, sections and paragraphs of the Plan are
for convenience only and shall not control or affect the meaning or construction of any of its
provisions.

          14.9 Governing Law. Subject to ERISA and the Code, the provisions of the Plan shall
be construed and interpreted according to the laws of the State of Delaware without regard to its
conflicts of law principles.

          14.10 Notice. Any notice or filing required or permitted to be given to the Committee
under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or
certified mail, to the address below:

   Allied World Assurance Company (U.S.) Inc.

   Supplemental Executive Retirement Plan Committee

   225 Franklin Street, 27th Floor

   Boston, Massachusetts 02110

          Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail,
as of the date shown on the postmark on the receipt for registration or certification. Any notice
or filing required or permitted to be given to a Participant under this Plan shall be sufficient if
in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

          14.11 Successors. The provisions of this Plan shall bind and inure to the benefit of
the Participant’s Employer and its successors and assigns and the Participant and the Participant’s
Beneficiaries.

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          14.12 Validity. If any provision of this Plan shall be illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof, and the Plan
shall be construed and enforced as if such illegal or invalid provision had never been inserted
herein.

          14.13 Incompetent. If the Committee determines in its discretion that a Benefit under
this Plan is to be paid to a minor, a person declared incompetent or a person incapable of handling
the disposition of that person’s property, the Committee may direct payment of such Benefit to the
guardian, legal representative or person having the case and custody of such minor, incompetent or
incapable person. The Committee may require proof of minority, incompetence, incapacity, or
guardianship, as it may deem appropriate prior to distribution of the Benefit. Any payment of a
Benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as
the case may be, and shall be a complete discharge of any liability under the Plan for such payment
amount.

          14.14 Distribution in the Event of Taxation. If the Internal Revenue Service or a
court of competent jurisdiction determines that Plan Benefits are includible in the gross income of
a Participant under Section 409A prior to actual receipt of the Benefits, the Company shall
immediately cause to be distributed to the Participant the Benefits found to be so includible.

          14.15 Insurance. The Employers, on their own behalf or on behalf of the trustee of
the Trust, and, in their sole discretion, may apply for and procure insurance on the life of the
Participant, in such amounts and in such forms as the trustee may choose. The Employers or the
trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such
insurance. The Participant shall have no interest whatsoever in any such policy or policies, and
at the request of the Employers shall submit to medical examinations and supply such information
and execute such documents as may be required by the insurance company or companies to whom the
Employers have applied for insurance.

          14.16 Inability to Locate A Participant. It is the responsibility of a Participant to
apprise the Committee of any change in his or her address or the address of any Beneficiary. In
the event that the Committee is unable to locate a Participant or Beneficiary within two years of a
Distribution Event, the Participant’s Account shall be forfeited and amounts returned to the
Company and neither the Participant or any Beneficiary shall have a claim to such Benefits.

          14.17 Coordination with Other Benefits. Benefits provided for a Participant or
Participant’s Beneficiary under the Plan are in addition to any other benefits available to such
Participant under any other plan or program for employees of the Participant’s Employer. The Plan
shall supplement and shall not supersede, modify or amend any other such plan or program, except as
may otherwise be provided.

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     IN WITNESS WHEREOF, the Company has caused this amended and restated Plan document to be
signed as of the 30th day of December 2009.

	 	 	 	 	 
	 	Allied World Assurance Company (U.S.) Inc.

 	 
	 	By:  	/s/
Todd Germano	 
	 	 	Name:  	Todd Germano	 
	 	 	Title:  	President, Property & Casualty	 
	 
	 	 	 
	 	By:  	/s/
Karen Colonna	 
	 	 	Name:  	Karen Colonna	 
	 	 	Title:  	Asst. Secretary	 
	 

- 21 -

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