THIS EMPLOYMENT AGREEMENT (this “ Agreement ”) effective as of January 1, 2008, is by and
between First Acceptance Corporation, a Delaware corporation (the “ Company ”), and Daniel L. Walker (“
In consideration of the continued employment of Executive by the Company, the grant to Executive by the
Company on the date hereof of a non-qualified option to purchase shares of the Company’s common stock, and
the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and Executive, intending to be legally bound, hereby agree as
1. Employment . The Company agrees to employ Executive, and Executive accepts such employment, upon
the terms and conditions set forth in this Agreement, for the period beginning as of the date hereof and ending
upon his separation pursuant to Section 4 hereof (the “ Employment Period ”).
2. Position and Duties .
(a) During the Employment Period, Executive shall serve as Senior Vice President — Operations of the
Company and shall have the normal duties, responsibilities, functions and authority of such position.
(b) During the Employment Period, Executive shall devote his best efforts and his full business time and
attention (except for time devoted to charitable and non-profit activities and service as a director on the board(s)
of directors of companies (whether public or private) other than the Company, in each case, in a manner that
does not interfere with the performance of his duties to the Company, vacation periods in accordance with the
terms set forth herein, and periods of illness) to the business and affairs of the Company. Executive shall perform
his duties, responsibilities and functions to the Company hereunder to the best of his abilities in a diligent,
trustworthy and businesslike manner.
3. Compensation and Benefits .
(a) Commencing on the date hereof and