Document:

EX-10.2

 Exhibit 10.2 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS EXECUTIVE EMPLOYMENT AGREEMENT
(this “Agreement”) is made to be effective as of February 01, 2013 (the “Commencement Date”), by and between Frontier Oilfield Services, Inc., a publicly traded Texas corporation (“FOSI”) (including all affiliates
and subsidiaries hereinafter called the “Company”), and Stephen P. Carson (hereinafter called the “Executive”). 
 W I T N E S S E T H: 
 WHEREAS, the Executive desires to enter into
an executive employment relationship with the Company; and 
 WHEREAS, both the Company and Executive have read and
understood the terms and provisions set forth in this Agreement and have been afforded a reasonable opportunity to review this Agreement with their respective advisors; 
 NOW, THEREFORE, in consideration of the mutual promises of each, and other good and valuable consideration, the parties hereby covenant and agree as follows: 

20. SERVICES AND DUTIES 
 (e) Positions. The Executive shall serve as a Vice President and General Counsel of Frontier Oilfield Services, Inc. The Executive shall report to the President and CEO of the Company and
shall perform all duties consistent with this position and such duties generally consistent therewith; and as such duties shall be prescribed and/or amended from time to time by the President. 

(f) Devotion of Time. As of the Commencement Date (as defined above), the Executive shall devote his full
time and attention to the Company and FOSI. 
 (g) No Joint Venture. The provisions of this Agreement, and
especially the compensation provisions, are not intended to create any relationship between the Parties other than that of employer and employee contracting with each other solely for the purpose of effecting the provisions of this Agreement, and
this Agreement shall not be construed as creating a partnership or joint venture between the parties. 
 21. TERM

 This Agreement shall begin on the Commencement Date and end on the last day of 2013 (the “Original Term”).
Thereafter, this Agreement shall automatically renew for successive one (1) year terms unless otherwise terminated as provided herein. 
 22. COMPENSATION AND RELATED MATTERS 
 (h) Base
Salary. From and after the Commencement Date, the Executive shall receive an initial base salary (the “Base Salary”) paid by the Company of $10,000 per month, payable semi-monthly. ($120,000 annually). Within 90 days of the execution
of the Agreement Executive’s Base Salary will be reviewed and an adjustment will be made according to said review. 

  
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 (i) Shares. The Executive will be entitled to the issuance of certain
restricted common stock of FOSI for services rendered. Upon the execution of the Agreement 100,000 shares of FOSI common stock will be set aside for distribution to Executive on a per annum basis, beginning March 31, 2013 to be initially
prorated in the amount of 16,667 shares for the first quarter 2013 and 25,000 shares to be issued per quarter thereafter for the remainder of this Agreement. 

(j) Stock Grant. The Executive will receive a grant of 100,000 restricted common shares as a sign on bonus for his
services as Vice President & General Counsel of the Company. However the granted shares will vest at the end of each calendar quarter at the rate of 25,000 shares per quarter for the calendar year ending December 31, 2013. In the event
Executive is terminated or resigns pursuant to Section 4 of this Agreement, prior to the end of said period the granted shares not vested at the date of termination or resignation must be immediately surrendered and returned to FOSI. The common
stock granted and issued to Executive will bear the appropriate legend and FOSI will place an appropriate stop transfer with the Transfer Agent for FOSI. Prior to the vesting in full of the one-time grant of 100,000 shares of restricted common
stock, you agree not to assign, hypothecate, donate, encumber or otherwise dispose of any interest in any of said restricted common stock. 
 (k) Bonus. The Executive will participate in a discretionary annual cash bonus plan that will be outlined by the board of directors of Frontier. 

(l) Benefits. In addition to the Base Salary, the Executive will be entitled to the following benefits during the
Employment Period if offered by the Company, unless otherwise altered by the Board with respect to all Executives of the Company: 
 (v) hospitalization, disability, life and health insurance, to the extent offered by the Company, and in amounts consistent with Company policy, for all key management employees, as reasonably determined
by the Board; 
 (vi) paid vacation each year with salary, consistent with Company policy for all senior
employees and provided that unused vacation time shall not be carried over to subsequent years; 
 (vii)
reimbursement for reasonable, ordinary and necessary out-of-pocket expenses incurred by Executive in the performance of his duties, subject to the Company’s policies in effect from time to time with respect to travel, entertainment and other
expenses, including, without limitation, requirements with respect to reporting and documentation of such expenses. 

  
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 (viii) Other benefit arrangements, including a 401(k) or similar tax
deferral plan, to the extent made generally available by the Company to its Executives and key management employees. 
 (m) Other Benefits. The Executive shall be entitled to participate in other benefit plans to which he is eligible pursuant to Company policy, which may be amended from time to time in the
Company’s discretion and the applicable plan documents (the “Standard Benefit Plans”). See, “Exhibit A” to this contract. 
 (n) Business Expenses. During the Term, the Company shall pay or reimburse you for all reasonable and necessary business-related expenses you incur in the performance of your duties under this
Agreement, including without limitation expenses related to visiting various Company locations. The Company will pay or reimburse you for all such expenses upon the presentation by you of an itemized account of such expenditures, together with
supporting receipts and other appropriate documentation showing that any such expenditure were ordinary and reasonable business-related expenses. 
 23. TERMINATION 
 This Employment Agreement is expressly written to override
the Texas at-will principle; and therefore, the Executive’s employment may only be terminated by the Company or the Executive, under the following circumstances: 

(o) Mutual Agreement. Termination may occur by mutual written agreement between the Executive and the Company.

 (p) Death. Employment shall terminate upon the death of the Executive. 

(q) Disability. Termination will result if the Executive is unable to perform his duties on a full-time basis
because of Executive’s inability to perform his duties under this Agreement, without reasonable accommodation, for a period of more than sixty (60) days (“Disability”). 

(r) Termination of the Executive’s employment for “Cause.” For purposes of this Agreement, the
Company shall have “Cause” to terminate the Executive’s employment hereunder only upon: 
 (vii)
the failure by the Executive to substantially perform his duties as outlined hereunder or to follow the reasonable directions of the Board after demand for substantial performance is delivered by the Board; 

(viii) the engaging by the Executive in conduct that is materially injurious to the Company, monetarily or otherwise;

 (ix) the engaging by the Executive in criminal conduct or conduct constituting moral turpitude; 

(x) The engaging by the Executive in employment practices which violate federal, state or local law. 

  
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 (xi) The engaging in conduct by the Executive which results in an action
against him by the Securities and Exchange Commission or any similar state regulatory agency or loss of his ability to act as a Vice President & General Counsel. 

(s) Termination Without Cause. Notwithstanding any provisions of this Agreement to the contrary, the Company may
not terminate the Executive’s employment for any reason other than those specified in the foregoing paragraphs (a), (b), (c) or (d). 
 (t) Voluntary Resignation. The Executive may terminate this Agreement (“Voluntary Resignation”) at any time effective upon thirty (30) days written notice to the Board. 

24. COMPENSATION AND PAYMENTS UPON TERMINATION 
 The Executive shall be entitled to the following compensation from the Company (in lieu of all other sums payable to the Executive hereunder) upon the termination of Executive’s employment.

 (u) Mutual Agreement. If the Executive’s employment is terminated as a result of mutual
agreement, the Company shall pay the Executive’s Base Salary, plus any lump sum payment for the value of all accrued, earned and unused benefits under the Standard Benefit Plans through the date of termination, and the Executive will be
entitled to receive any vested pension and retirement benefits (for all purposes of this Agreement, all such accrued, earned and unpaid items through the applicable date of termination are referred to as the “Earned Amounts”). 

(v) Death. If the Executive’s employment is terminated as a result of death, the Company will pay to the
Executive’s estate the Earned Amounts. 
 (w) Disability. If the Executive’s employment is
terminated as a result of Disability (as defined in Section 4(c) above), the Executive will be provided long term disability benefits to which he may be eligible (if any) in accordance with the Company’s then existing Standard Benefit
Plans, and the Company shall pay to the Executive the Earned Amounts. 
 (x) Termination by the Executive.
In the event the Executive voluntarily elects to terminate this Agreement, the Company shall pay the Executive any Earned Amounts. 
 (y) Termination for Cause. If the Executive’s employment is terminated for Cause, the Company shall pay the Executive any Earned Amounts and the Company shall have no further obligation to the
Executive. 

  
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 25. NON-DISCLOSURE 

(z) Confidential Information. By virtue of his employment with the Company, the Executive will have access to
confidential, proprietary, and highly sensitive information relating to the business of the Company and which is a valuable, competitive and unique asset of the Company (“Confidential Information”), the confidentiality of which is
essential to the Company’s ability to differentiate its products and services. Such Confidential Information includes all information which relates to the business of the Company, which is or has been disclosed to the Executive orally or in
writing by the Company or obtained by virtue of work performed for the Company, is or was developed by the Company, and is not generally available to or known by individuals or entities within the industry in which the Company is or may become
engaged or readily accessible by independent investigation. The Confidential Information sought to be protected includes, without limitation, information pertaining to: (i) the identities of customers and clients with which or whom the Company
does or seeks to do business, as well as the point of contact persons and decision-makers at these customers and clients, including their names, addresses, e-mail addresses and positions; (ii) the past or present purchasing history and the past
and/or current job requirements of each past and/or existing customer and client; (iii) the volume of business and the nature of the business relationship between the Company and its customers and clients; (iv) the pricing of the
Company’s services, including any deviations from its standard pricing for particular customers and clients; (v) the Company’s business plans and strategy, including customer or client assignments and rearrangements, sales and
administrative staff expansions, marketing and sales plans and strategy, proposed adjustments in compensation of sales personnel, revenue, expense and profit projections, industry analyses, and any proposed or actual implemented technology changes;
(vi) information regarding the Company’s employees, including their identities, skills, talents, knowledge, experience, and compensation; (vii) the Company’s financial results and business condition; and (viii) computer
programs and software developed by the Company and tailored to the Company’s needs by its employees, independent contractors, consultants or vendors; (ix) information relating to the Company’s architects, designers, contractors, or
persons likely to become architects, designers, or contractors; (x) any past or present merchandise or supply sources in the future; (xi) technical and non-technical information including patent, copyright, trade secret, proprietary
information, methods, ideas, concepts, designs, inventions, know-how, processes, software programs, software source documents and formulae related to the current, future and proposed products and services of the Company including research,
experimental work, development, design details and specifications and engineering, financial statements, forecasts, plans (whether business, strategic, marketing or other), client lists, prospective client lists, sales data, sales analysis,
equipment and other assets, prices, costs, sources of supplies, pricing methods, personnel, marketing research, and business relationships, whether or not marked “Confidential” or “Proprietary”. Confidential Information may be
contained on the Company’s computer network, in computerized documents or files, or in any written or printed documents, including any written reports summarizing such information. 

  
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 (aa) Non-Disclosure of Confidential Information. The Executive
acknowledges that the Company’s Confidential Information will be disclosed to the Executive throughout his employment at the Company in order to enable the Executive to perform his duties for the Company. The Executive further acknowledges
that, prior to his employment at the Company, Executive was either unfamiliar with the Company’s Confidential Information or Executive developed such Confidential Information for the benefit of the Company and was otherwise compensated for such
services outside of the terms of this Agreement. Finally, Executive acknowledges that the unauthorized disclosure of Confidential Information could place the Company at a competitive disadvantage. Consequently, Executive agrees (i) not to use,
publish, disclose or divulge, directly or indirectly, at any time, any Confidential Information for his own benefit and for the benefit of any person, entity, or corporation other than the Company, to any person who is not a current employee of the
Company, without the express, written consent of the Company and except in the performance of the duties assigned to him by the Company; (ii) not to make copies of Confidential Information without the prior written consent of the Company;
(iii) to take reasonable precautions to protect against the inadvertent disclosure of such Confidential Information or theft or misappropriation by others; and (iv) not to use such Confidential Information except in connection with the
specific duties of the Executive in connection with his employment. 
 (bb) Notwithstanding the foregoing, the
confidentiality and nondisclosure provisions contained herein with respect to any portion of the Confidential Information shall terminate when the Executive can document that the Confidential Information: 

(xii) was in the public domain at the same time it was communicated to the Executive by the Company; 

(xiii) entered the public domain subsequent to the time it was communicated to the Executive by the Company through no
fault of the Executive; 
 (xiv) was in the Executive’s possession free of any obligation of confidence at
the time it was communicated to the Executive by the Company; 
 (xv) was rightfully communicated to the
Executive free of any obligation of confidence subsequent to the time it was communicated to the Executive by the Company; 
 (xvi) was developed by the Executive independently of and without any reference to any information communicated to the Executive by the Company; or 

(xvii) was communicated in response to a valid subpoena or order by a court or by a governmental body, provided that the
Executive complies with the provisions of Section 6(e) below. 

  
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 (cc) Survival of Executive’s Obligations. Executive understands
and agrees that his obligations under this Section shall survive the termination of this Agreement and/or his employment with the Company. Executive further understands and agrees that his obligations under this Section are in addition to, and not
in limitation or preemption of, all other obligations of confidentiality which he may have to the Company under general legal (Securities and Exchange Commission and state securities laws and regulations) or equitable principles, or other policies
implemented by the Company. 
 (dd) Certain Disclosures. In the event that the Executive receives a
request to disclose all or any part of the Confidential Information under the terms of a subpoena or order issued by a court or by a governmental body, the Executive agrees (i) to notify the Company immediately of the existence, terms, and
circumstances surrounding such request, (ii) to consult with the Executive on the advisability of taking legal available steps to resist or narrow such request, and (iii) if disclosure of such Confidential Information is required to
prevent the Executive from being held in contempt or subject to other penalty, to furnish only such portion of the Confidential Information as, in the opinion of counsel to the Executive, it is legally compelled to disclose and to exercise its best
efforts to obtain an order or other reliable assurance that confidential treatment will be accorded to the disclosed Confidential Information. 
 26. RETURN OF COMPANY PROPERTY 
 Executive acknowledges that all memoranda,
notes, correspondence, databases, computer discs, computer files, computer equipment and/or accessories, pagers, telephones, passwords or pass codes, records, reports, manuals, books, papers, letters, CD Roms, keys, Internet database access codes,
client profile data, job orders, client and customer lists, contracts, software programs, information and records, drafts of instructions, guides and manuals, and other documentation (whether in draft or final form), and other sales, financial or
technological information relating to the Company’s business, and any and all other documents containing Confidential Information furnished to Executive by any representative of the Company or otherwise acquired or developed by him in
connection with his association with the Company (collectively, “Recipient Materials”) shall at all times be the property of the Company. Within twenty-four (24) hours of the termination of his employment for any reason, Executive
will return to the Company any Recipient Materials which are in his possession, custody or control. 
 27. NON-SOLICITATION
OF CUSTOMERS/CLIENTS 
 (ee) Access to Confidential Information. Executive acknowledges that the
special relationship of trust and confidence between him, the Company, and its clients and customers creates a high risk and opportunity for Executive to misappropriate the relationship and goodwill existing between the Company and its clients and
customers. Executive further acknowledges and agrees that it is fair and reasonable for the Company to take steps to protect itself from the risk of such misappropriation. Executive further acknowledges that, at the outset of his employment with the
Company and/or throughout his employment with the Company, Executive has been or will be provided with access to and informed of the Company’s Confidential Information, which will enable him to benefit from the Company’s goodwill and
know-how. 

  
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 (ff) Inevitable Disclosure. Executive acknowledges that it would be
inevitable in the performance of his duties as a director, officer, employee, investor, agent or consultant of any person, association, entity, or company which competes with the Company, or which intends to or may compete with the Company, to
disclose and/or use the Company’s Confidential Information, as well as to misappropriate the Company’s goodwill and know-how, to or for the benefit of such other person, association, entity, or company. Executive also acknowledges that, in
exchange for the execution of the non-solicitation restriction set forth in this Section 8(b), he has received substantial, valuable consideration, including the consideration set forth in Sections 3 and 5 above. Executive further
acknowledges and agrees that this consideration constitutes fair and adequate consideration for the execution of the non-solicitation restriction set forth in this Section. 

(gg) Non-Solicitation of Customers/Clients. Ancillary to the enforceable promises set forth in this Agreement
including, without limitation, the promises contained in Sections 3, 6 and 7, as well as to protect the vital interests described in those Sections, Executive agrees that, while he is employed by the Company and for a period of twelve
(12) months following the termination of his employment with the Company, regardless of the reason for such termination, Executive will not, without the prior written consent of the Company, directly or indirectly, alone or for his own account,
or as owner, partner, investor, member, trustee, officer, director, shareholder, employee, consultant, distributor, advisor, representative or agent of any partnership, joint venture, corporation, trust, or other business organization or entity,
(i) contact, solicit sales of, or sell, deliver or place any product, service or system of the kind and character sold, provided, distributed or placed by Executive on behalf of the Company to any person, association, corporation or other
business organization or entity that Executive contacted, solicited, called upon, or served, or that he directed others to solicit, call upon, or serve, on behalf of the Company, during his employment at the Company; or (ii) contact, solicit,
or seek to divert the business or patronage of any person, association, corporation, or other business organization or entity with whom or which Executive had business relations on behalf of the Company or with whom or which he met or communicated,
or with whom or which he directed others to meet or communicate, for the purpose of offering to sell or place or solicit for sale or placement any product, service, or system of the kind and character sold, provided or distributed by him, on behalf
of the Company, during his employment at the Company. 
 (hh) Reasonable Restrictions. Executive agrees
that the restriction set forth above is ancillary to an otherwise enforceable agreement, is supported by independent valuable consideration, and that the limitations as to time, geographical area, and scope of activity to be restrained by this
Section are reasonable and acceptable, and do not impose any greater restraint than is reasonably necessary to protect the goodwill and other business interests of the Company. Executive agrees that if, at some later date, a court of competent
jurisdiction determines that the non-solicitation agreement set forth in this Section does not meet the criteria set forth in Tex. Bus. & Comm. Code Ann. 15.50(2), this Section may be reformed by the court and enforced to the maximum
extent permitted under Texas law. 

  
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 (ii) Breach. If Executive is found to have violated any of the
provisions of this Section, Executive agrees that the restrictive period of each covenant so violated shall be extended by a period of time equal to the period of such violation by him. Executive understands that his obligations under this Section
shall survive the termination of his employment with the Company and shall not be assignable by him. 
 28. NON-SOLICITATION
OF EMPLOYEES AND CONSULTANTS 
 Executive acknowledges that, as part of his employment or association with the Company, he
will become familiar with the salary, pay scale, capabilities, experiences, skill and desires of the Company’s employees. In order to protect the confidentiality of such information, Executive agrees that, for a period of twelve
(12) months following the termination of his employment with the Company, whether such termination occurs at the insistence of Executive or the Company, Executive shall not recruit, hire, solicit, or attempt to recruit, hire or solicit,
directly or by assisting others, any other employees or consultants employed by or associated with the Company, nor shall he contact or communicate with any other employees or consultants of the Company for the purpose of inducing other employees or
consultants to terminate their employment or association with the Company. For purposes of this covenant, “other employees or consultants” shall refer to permanent employees, temporary employees, or consultants who were employed by, doing
business with, or associated with the Company within six (6) months of the time of the attempted recruiting, hiring or solicitation. Executive’s obligations under this Section 9 shall survive the termination of this Agreement and
Executive’s employment with the Company. 
 29. REMEDIES 

In the event that Executive violates any of the provisions set forth in Sections 6, 7, 8, or 9 of this Agreement, he acknowledges
that the Company will suffer immediate and irreparable harm which cannot be accurately calculated in monetary damages. Consequently, Executive acknowledges and agrees that the Company shall be entitled to immediate injunctive relief, either by
temporary or permanent injunction, to prevent such a violation. Executive further acknowledges and agrees that this injunctive relief shall be in addition to any other legal or equitable relief, including monetary damages, to which the Company would
be entitled. 
 30. INVENTIONS, IDEAS/PATENTABLE INVENTIONS 

(jj) Inventions. Any discovery, invention, design, improvement, concept or other intellectual properties, either
patentable or not, made, developed or conceived by the Executive during the term of the Agreement, and for twelve (12) months after termination thereof, which relate to or are useful in the business or activities in which the Company is or may
become engaged, and which may or may not also constitute Confidential Information (the “Inventions”), shall be the exclusive property of the Company and its successors. 

(kk) Disclosure to the Company. The Executive agrees to disclose promptly, in writing, if so requested, to the
Company, any Inventions that the Executive may make, develop or conceive during the term of this Agreement by the Company or its successors. 

  
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 (ll) Work for Hire. The Executive agrees that the Inventions shall be
deemed “work made for hire” and hereby assigns, and agrees to assign, to the Company all the Executive’s rights, title and interest in any such Inventions, whether or not during the term of this Agreement such Inventions may be
reduced to practice, and to execute all patent applications, copyright applications, assignments and other documents, and to take all other steps necessary (but all at the Company’s expense), to vest in the Company the entire right, title and
interest in and to those Inventions and in and to any patents or copyrights obtainable therefor in the United States and in foreign countries. 
 (mm) Obligation to Assign Inventions to the Company. The Executive shall not be obligated to assign to the Company any Invention made by him during the Relationship or after termination of
this Agreement which does not relate to any business or activity in which the Company is or may become engaged, except that the Executive is so obligated if the same relates to or is based on Confidential Information to which the Executive shall
have had access during and by virtue of his employment or arises out of work assigned to him by the Company; nor shall the Executive be obligated to assign any Inventions which relate to or would be useful in any business or activities in which the
Company is engaged if such Invention was conceived and reduced by practice by the Executive prior to this Agreement with the Company, provided that all such Inventions are listed on “Exhibit B” attached hereto and made known to
the Company. 
 31. SUCCESSORS; BINDING AGREEMENT 

This Agreement shall be binding upon, and inure to the benefit of, the Company, Executive, and their respective successors, assigns,
personal and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. Without limiting the generality of the foregoing, the Company may assign this Agreement (or the same may remain with the
Company as a subsidiary of a larger institution), without the consent of Executive, with such assignee being required to perform the obligations of the Company hereunder, to any successor of the Company. 

32. COMPLETE AGREEMENT 
 This Agreement sets forth the entire agreement among the Company and Executive concerning the subject matter hereof, and supersedes all prior written or oral understandings of the parties. 

33. NOTICE 
 For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when (i) delivered personally;
(ii) sent by telecopy or similar electronic device and confirmed; (iii) delivered by overnight express; or (iv) sent by registered or certified mail, postage prepaid, addressed as follows: 

  
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	 If to the Executive:
	 		  	Stephen P. Carson
		 		  	13500 Noel Road, Apt. 215
		 		  	Dallas, Texas 75240
		 		  	Attention: Stephen P. Carson
			
	 If to FOSI:
	 		  	Frontier Oilfield Services, Inc.
		 		  	3030 LBJ Freeway, Suite 1320
		 		  	Dallas, Texas 75234
		 		  	Attention: Tim Burroughs, CEO

 Or to such other address as any party may have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt. 
 34. MISCELLANEOUS 

No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in
writing, signed by the Executive and the Company. No waiver by either party hereto of or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same or at any prior or subsequent time. Either party hereof has made no agreements or representations, oral or otherwise, express or implied, with respect to the subject matter, which are not set forth expressly in this
Agreement. 
 35. GOVERNING LAW AND VENUE 
 This Agreement is being made and is intended to be performed in the State of Texas, and shall be governed, construed, interpreted, and enforced in accordance with the substantive laws of the State of
Texas and venue for any matter in connection with or arising from this Agreement shall be in Dallas County, Texas. 
 36.
ATTORNEY FEES 
 All legal fees and costs incurred in connection with the resolution of any dispute or controversy under or
in connection with this Agreement shall be borne by the non-prevailing party. 
 37. COUNTERPARTS 

This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will
constitute one and the same agreement. 
 38. VOLUNTARY AGREEMENT 

The parties acknowledge that each has had an opportunity to consult with an attorney or other counselor concerning the meaning, import,
and legal significance of this Agreement, and each has read this Agreement, as signified by their respective signatures hereto, and each is voluntarily executing the same after, if sought, advice of counsel for the purposes and consideration herein
expressed. 

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

	
	EXECUTIVE:
	
	 
	 Stephen P. Carson

	
	COMPANY:
	
	FRONTIER OILFIELD SERVICES, INC.
	
	 By:

	
	 
	
	 Name:

	
	 
	
	 Title:

	
	 

  
 12EX-10.11

 Exhibit 10.11 
 SECOND AMENDED AND RESTATED 
 EXECUTIVE EMPLOYMENT AGREEMENT

 THIS SECOND AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”)
is effective as of the 1st day of January, 2011 (the
“Effective Date”) by and between Affirmative Insurance Holdings, Inc. (the “Company”) and Joseph Fisher (“Executive”). 
 PRELIMINARY STATEMENTS 
  

	 	A.	The Company has employed Executive as Executive Vice President, General Counsel, and Secretary since November 1, 2006; 

 

	 	B.	In connection with such employment, the Company and Executive entered into an Executive Employment Agreement dated November 1, 2006 (the “Anniversary
Date”), which was subsequently amended by a First Amended and Restated Executive Employment Agreement dated March 30, 2009; 

  

	 	C.	The Company and Executive desire to amend further certain terms of the Executive Employment Agreement, as amended; and 

 

	 	D.	Each party desires to set forth in writing the terms and conditions of their understandings and agreements. 

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the Company hereby agrees to employ
Executive and Executive hereby accepts such employment upon the terms and conditions set forth in this Agreement: 
 STATEMENT
OF AGREEMENT 
 1. Position. 
 (a) The Company agrees to employ Executive in the position of Executive Vice President, General Counsel, and Secretary. Executive shall serve and perform the duties which may from time to time be assigned
to him by the Company’s Chief Executive Officer (“CEO”) and the Board of Directors (the “Board”). 

(b) Executive shall report directly to the Chief Executive Officer. 

(c) Executive agrees to serve as Executive Vice President, General Counsel, and Secretary and agrees that he will devote his best efforts
and substantially all of his business time and attention to all facets of the business of the Company and will faithfully and diligently carry out the duties of these positions; provided, however that Executive may devote reasonable time to
activities involving professional, charitable, and similar types of organizations, speaking engagements and memberships on the boards of directors of other organizations, so long a such activities do not interfere with the performance of
Executive’s duties hereunder, and do not represent a conflict of interest. Executive agrees to comply with all Company policies in effect 

 
from time to time, and to comply with all laws, rules and regulations applicable to the Company, including, but not limited to, those established by the Department of Insurance, the Securities
and Exchange Commission, or any self-regulatory organization having jurisdiction or authority over the Executive or the Company. 
 (d) Executive agrees to travel as reasonably necessary to perform his duties under this Agreement. 
 (e) The Company, in its sole discretion, may require that Executive be designated an employee of one or more of the Company’s subsidiaries or affiliates for such purposes as payroll and benefits
administration. The employment of Executive by any such subsidiary or affiliate to facilitate the Company’s internal administrative purposes shall be considered employment by the Company within the meaning of this Agreement and shall not
otherwise affect any of the rights or responsibilities of the Company or Executive hereunder, including, but not limited to, Executive’s level of compensation. 
 (f) The position of Executive Vice President, General Counsel, and Secretary shall be located at the Company’s corporate office in Burr Ridge, Illinois. 

2. Term of Agreement. 
 (a) Term. The Initial Term of this Agreement shall be extended to seven (7) years from the Anniversary Date (“Initial Term”), unless otherwise terminated pursuant to Section 5
of this Agreement. For the avoidance of doubt, absent an earlier termination pursuant to Section 5, this Agreement shall expire on October 31, 2013. The Initial Term, and any further extension thereof shall be referred to herein as the
“Term.” 
 (b) Expiration of Term. This Agreement will terminate automatically upon the expiration of the Term,
or any extension thereof. The Company shall provide written notice of its intention to renew or extend this Agreement to Executive at least six (6) months before the last day of the Term. In the event that the Company and the Executive do not
agree to a renewal or extension of this Agreement, then as of the last day of the Term: (1) unless otherwise set forth in the award documents, Executive’s unvested stock options and restricted stock awards will immediately vest; and
(2) Executive shall be entitled to an amount equal to the previous year’s Bonus paid to Executive prorated on a daily basis for the number of days employed in the year of expiration of the Term through the date of expiration of the Term,
to be paid in full within 30 days of the expiration of the Term (the “Pro Rata Bonus”). 
 3. Compensation and
Benefits. 
 (a) Base Salary. As of the Effective Date, the Company shall pay Executive an annual salary rate of Three
Hundred Forty Thousand Dollars ($340,000), with such amounts to be paid on a bi-weekly basis (“Base Salary”) pursuant to the Company’s standard payroll practices. Executive’s Base Salary shall be reviewed at least annually for
consideration of appropriate merit increases and, once established, the Base Salary shall not decrease during the Term without the consent of Executive. 

 (b) Bonus Opportunities. In addition to the Base Salary, Executive will be eligible
to participate in the Company’s bonus plan(s) (“Bonus”) with eligibility for an annual target bonus of no less than Sixty-Five percent (65%) of Base Salary (“Target Bonus”). Executive’s annual bonus shall be based
upon achieving objectives as determined by the Compensation Committee of the Board of Directors. 
 (c) Stock. Executive
will also be eligible to participate in the Company’s 2004 Amended and Restated Stock Incentive Plan (“Stock Plan”), as may be amended from time to time. To the extent there is any conflict between this Agreement and the terms of any
award document pursuant to which such stock, options or other long-term equity incentives are awarded to Executive (the “Award Document”), the terms of the Award Document shall be primary and controlling. 

(d) Payment. Payment of all compensation to Executive hereunder shall be made in accordance with the terms of this Agreement and
applicable Company policies in effect from time to time, including normal payroll practices, and shall be subject to all applicable withholdings and taxes. 
 (e) Benefits Generally. The Company shall make available to Executive, throughout the term of this Agreement, benefits as are generally provided by the Company to its executive officers, including
but not limited to any group life, health, dental, vision, disability or accident insurance, 401(k) plan, or other such benefit plan or policy which may presently be in effect or which may hereafter be adopted by the Company for its executive
officers and key management personnel; provided, however, that nothing herein contained shall be deemed to require the Company to adopt or maintain any particular plan or policy. 

(f) Vacation/Sick Time. Executive shall be entitled to paid time off (“PTO”) accruing at 8.31 hours per period, or
twenty seven (27) days when annualized, consistent with the policies then applicable to executive officers. 
 4.
Reimbursement of Expenses. The Company shall reimburse Executive for all business expenses, which are reasonable and necessary and are incurred by Executive while performing his duties under this Agreement, upon presentation of expense
statements, receipts and/or vouchers, or such other information and documentation as the Company may reasonably require. The CEO reserves the right to deny any unreasonable business expense. 

5. Termination. 
 (a) Termination by the Company. 
 (i) Without Cause. The Company may
terminate this Agreement for any reason or no reason upon thirty (30) days written notice to Executive. If the Company terminates this Agreement pursuant to this provision, the Company will pay Executive: (1) all earned but unpaid Base
Salary (“Accrued Compensation”), and (2) an additional severance payment equal to one (1) year of the sum of the Executive’s then-current (a) Base Salary and (b) an amount equal to the Executive’s Target Bonus
(“Additional Severance Payment”). Upon termination of this Agreement by the Company pursuant to Section 5(a)(i), the Company shall pay the cost to Executive as such costs become due for continuation coverage under COBRA

 
(hereinafter referred to as the “Termination COBRA Payments”) during the Continuation Period (as hereafter defined). If and when the COBRA coverage ceases during the Continuation
Period, the Company will reimburse Executive for comparable coverage as received under COBRA during the reminder of the Continuation Period. The Continuation Period shall be the period commencing on the date of termination of this Agreement and end
twelve (12) months after the date of termination of this Agreement. 
 (ii) For Cause. The Company may terminate
this Agreement at any time for Cause. Upon termination by the Company for Cause, Executive shall only be entitled to the Accrued Compensation. “Cause” means any of the following: 

a) Executive’s commission of theft, embezzlement, any other act of dishonesty relating to his employment with the Company, or any
material violation of Company policies (including the Company’s ethics policies), or any law, rules, or regulations applicable to the Company, including, but not limited to, those established by the Department of Insurance, the Securities and
Exchange Commission, or any self-regulatory organization having jurisdiction or authority over Executive or the Company or any failure by the Executive to inform the Company of any violation of any law, rule or regulation by the Company or one of
its direct or indirect subsidiaries of which the Executive has actual knowledge; 
 b) Executive’s conviction of, or
pleading guilty or nolo contendere to, a felony or any lesser crime having as its predicate element fraud, dishonesty, misappropriation, or moral turpitude; 
 c) Executive’s neglect of duties or failure to perform obligations under this Agreement (other than due to disability) that materially causes harm to the Company or that has materially damaged or
interfered with the Company’s relationships with its customers, suppliers, employees or other agents; provided, however, that the Company shall give the Executive written notice of any actions or omissions alleged to constitute Cause under this
subsection (c) and the Executive shall have thirty (30) days to cure any such alleged Cause; 
 d) Executive’s
substance abuse or illegal use of drugs that impairs Executive’s performance, that materially causes harm to the Company or that, in the reasonable judgment of the Board, has damaged or interfered with the Company’s relationships with its
customers, suppliers, employees or other agents; 
 e) Executive’s commission of an act or acts in the performance of his
duties under this Agreement amounting to gross negligence or willful misconduct; 
 f) Executive’s breach of Sections 7 or
8 of this Agreement; or 
 g) Executive’s failure to remain an active member in good standing to practice law in the State
of Illinois, or any other state where Executive is admitted to practice law. 
 h) The Company may place Executive on paid
administrative leave from work during any investigation by the Company of a “cause” reason for Executive’s termination, and may prohibit Executive from coming into work, accessing the Company’s computer system, and contacting its
employees or customers during this time; provided, however, upon a failure of the Board of Directors to find that Cause exists, such placing of Executive on leave two times during the Term shall constitute Good Reason under Section 5 below.

 (b) Termination by Executive. 

(i) No Good Reason. Executive may terminate this Agreement for any reason upon providing thirty (30) days written notice to
the Company. If Executive terminates this Agreement pursuant to this provision, the Company will pay Executive the Accrued Compensation. 
 (ii) For Good Reason. For purposes of this Agreement, the term “Good Reason” shall mean termination of Executive’s employment with the Company by the Executive by giving at least
thirty (30) days advance written notice within thirty (30) days of the occurrence of one of the following events: 

a) Executive’s removal from his position as Executive Vice President, General Counsel and Secretary other than for Cause or by death
or Disability, during the term of this Agreement; 
 b) without Executive’s written consent, a reduction in
Executive’s Base Salary or Target Bonus or any failure to pay Executive any compensation or benefits to which he is entitled within five (5) days of the date due; provided, however, that Executive shall give the Company written notice of
any actions or omissions alleged to constitute Good Reason under this subsection (b) and the Company shall have ten (10) business days to cure any such alleged Good Reason; 

c) in the event of a requirement that Executive relocate Executive’s principal office to a location that is more than forty
(40) miles from the location of the Company’s administrative offices in Burr Ridge, Illinois; provided, however, that travel as reasonably necessary to perform duties under this Agreement shall not be deemed a violation of this subsection
(c); 
 d) a materially adverse change in Executive’s duties and responsibilities or a material reduction of compensation
or benefits; 
 e) the Company’s material breach of any provision of this Agreement or any of the covenants contained
herein that, if capable of being cured, remains uncured after Executive has delivered a written notice of breach to the Company and after the Company has had thirty (30) days after receipt of such written notice to cure such breach; or

 f) the failure of the Company to comply with and satisfy its obligations under Section 25 hereof. 

Upon termination for “Good Reason” pursuant to this provision, Executive shall be entitled to all benefits and payments as provided in
Section 5(a)(i) hereof for a termination by the Company without Cause. Executive shall only be required to give notice one time under this Section 5(b)(ii) and shall not be required to provide notice and a cure period for any breach or other
action that is not capable of cure. 

 (c) Disability. The Company may terminate this Agreement at any time Executive shall
be deemed by the Board to have sustained a “disability.” Executive shall be deemed to have sustained a “disability” if he shall have been unable to perform his duties for a period of more than ninety (90) days in any twelve
(12) month period. Upon termination of this Agreement for disability, the Company shall pay Executive his Accrued Compensation and the Pro Rata Bonus in a lump sum, subject to applicable withholdings, within thirty (30) calendar days of
termination of this agreement because of Executive’s disability. 
 (d) Death. This Agreement will terminate
automatically upon Executive’s death. Upon termination of this Agreement because of Executive’s death, the Company shall pay Executive’s estate his Accrued Compensation and the Pro Rata Bonus in a lump sum, subject to applicable
withholdings, within thirty (30) calendar days of termination of this Agreement because of Executive’s death. 
 (e)
Employment. Upon termination of this Agreement for any reason, including expiration of the Term, or a termination for a reason specified in this Section 5, Executive’s employment shall also terminate and cease, and Executive will
voluntarily resign any Director or Board positions he holds, unless otherwise requested by the Company. 
 (f) Transition
Period. Upon termination of this Agreement, and for a period of thirty (30) days thereafter (the “Transition Period”), Executive agrees to make himself available to assist the Company with transition projects assigned to him by
the Board. Executive will be paid at a daily rate of Two Thousand and no/100 ($2,000.00) dollars for any work performed for the Company during the Transition Period. 
 (g) Severance Payment. Any payment to Executive under this Section 5 will be payable in monthly installments due on the first day of each month during the course of the Non-Interference
Period. Executive shall not be entitled to, and the Company shall not pay, any severance under any other plan, program or policy of the Company. 
 (h) Section 409A. Notwithstanding the foregoing severance provisions, if the Board (or its delegate) determines in its or his or her discretion that Executive is a “Specified
Employee” (as defined in Section 409A of the United States Internal Revenue Code of 1986, as amended, and applicable guidance issued thereunder (“Section 409A”)) as of the Executive’s separation from service (as defined in
Section 409A), the following rules will apply with respect to severance payable in installments: 
 (i) For purposes of
applying the exception to Section 409A for short-term deferrals, each severance payment installment under Section 5(g) above will be treated as a separate payment for purposes of Section 409A. Accordingly, any severance payment paid
(i) within 2-1/2 months of the end of the Company’s taxable year containing Executive’s termination date, or (ii) within 2-1/2 months of Executive’s taxable year containing the termination date shall be exempt from
Section 409A and shall be paid as described above; 

 (ii) To the extent severance payments are not exempt from Section 409A under
subparagraph (i) above, if Executive’s severance payments otherwise payable in the first six months following Executive’s termination date are equal to or less than the lesser of the amounts described in Treasury Regulation
Section 1.409A-1(b)(9)(iii)(A)(1) and (2), such severance payments shall be exempt from Section 409A and shall be paid as described above; and 
 (iii) Only to the extent a portion of Executive’s severance payments are not exempt from Section 409A pursuant to subparagraphs (i) and (ii) above, then, any such remaining severance
payments will not be paid to Executive until the first payroll date of the 7th month following Executive’s termination date. Any deferred payments will be paid in a lump sum and shall be equal to the portion of the severance payment that
exceeds the Section 409A limit. Thereafter, the remainder of Employee’s severance payments will continue in monthly installments through completion of the Non-Interference Period (with each monthly installment being paid in the gross sum
of the Additional Severance Payment divided by 24). 
 If the Board (or its delegate) determines that Executive is a
“Specified Employee” and Executive is entitled to a lump sum severance payment, such payment shall be made on the first day of the 7th month following Executive’s termination date 

6. Release. Notwithstanding any other provision in this Agreement to the contrary, as a condition precedent to receiving any
payment set forth in Section 5 of this Agreement, Executive agrees to execute (and not revoke) a severance and release agreement acceptable to the Company (the “Release”). If Executive fails to execute and deliver the Release, or
revokes the Release, Executive agrees that he shall not be entitled to receive the above-stated severance payments. For purposes of this Agreement, the Release shall be considered to have been executed by Executive if it is signed by his legal
representative in the case of legal incompetence or on behalf of Executive’s estate in the case of his death. No payments shall be made under Section 5 until the period to revoke the release has terminated. 

7. Nondisclosure. 
 (a) The Company shall, immediately after executing this Agreement, provide Executive with some or all of the Company’s various trade secrets and confidential or proprietary information, including
information he has not received before, consisting of, but not limited to, all information: that is non-public or proprietary to the Company, or its affiliates including, but not limited to, information concerning its business activities including,
but not limited to, the present marketing and administration of certain insurance business and processes, including but not limited to any and all information concerning non-standard automobile insurance business, financial information,
administrative procedures, pricing methods and policies, client lists and information, business and marketing strategies, claims and underwriting procedures and guidelines, claims and underwriting files, utilization review and manuals, data format,
data gathering retrieval systems and methods, ideas about current and future services. Confidential Information shall not include: (i) information that Executive may furnish to third parties regarding his obligations under Sections 7 and 8; or
(ii) information that becomes generally available to the public by means other than Executive’s breach of Section 7 (for example, not as a result of Executive’s unauthorized release of marketing materials). 

 (b) Executive agrees that all Confidential Information, whether prepared by Executive or
otherwise coming into his possession, shall remain the exclusive property of the Company during Executive’s employment with the Company and thereafter. Executive further agrees that he shall not, without the prior written consent of the
Company, use or disclose to any third party any of the Confidential Information described herein, directly or indirectly, either during Executive’s employment with the Company or at any time following the termination of Executive’s
employment with the Company, except as Executive may be required by Court Order. If such Court Order is issued, Executive shall inform the Company a reasonable time prior to compliance. 

(c) Upon termination of this Agreement, Executive agrees that all Confidential Information and other files, documents, materials,
records, notebooks, customer lists, business proposals, contracts, agreements and other repositories containing information concerning the Company or the business of the Company (including all copies thereof) in Executive’s possession, custody
or control, whether prepared by Executive or others, shall remain with or be returned to the Company promptly (within seventy-two (72) hours) after the termination or expiration of this Agreement for any reason. 

8. Noncompete, Nonsolicitation, and Non-Disparagement. 
 (a) Business Relationships and Goodwill. Executive acknowledges and agrees that, as an employee and representative of the Company, Executive will be given Confidential Information. Executive acknowledges
and agrees that this creates a special relationship of trust and confidence between the Company, Executive and the Company’s current and prospective customers, limited partners, and investors. Executive further acknowledges and agrees that
there is a high risk and opportunity for any person given such responsibility and Confidential Information to misappropriate the relationship and goodwill existing between the Company and the Company’s current and prospective customers, limited
partners, and investors. Executive therefore acknowledges and agrees that it is fair and reasonable for the Company to take steps to protect itself from the risk of such misappropriation. Consequently, Executive agrees to the following
noncompetition and nonsolicitation covenants. 
 (b) Scope of Noncompetition Obligation. 

(i) Executive acknowledges and agrees that the period of one (1) year following the termination or expiration of this Agreement for
any reason will constitute the non-compete, non-solicit and non-divert period (the “Non-Interference Period”). During his employment and during the Non-Interference Period, Executive will not engage in duties or provide services to a
Competitor which are substantially similar to those Executive provided to the Company under this Agreement, in any capacity, upon the termination or expiration of this Agreement in states where the Company is doing business or has expended resources
in pursuit of, or in preparation to do, business (the “Prohibited Market”); provided, however, that the foregoing shall not apply in the event that the Term of this Agreement expires by reason of the Company’s election not to renew or
extend this Agreement. The term “Competitor” means (i) insurance companies providing non-standard automobile insurance coverage of any type or class as a primary line of business (in excess of fifteen percent (15%) of aggregate
revenues), (ii) underwriting agencies (or managing general agencies) that produce and administer non-standard automobile insurance as a primary line of business, and (iii) retail agencies that sell non-standard automobile insurance
policies as a primary line of business. 

 (ii) Executive agrees that he shall not at any time during his employment divert away or
attempt to divert away any business from the Company to another company, business, or individual. Additionally, Executive shall not, during the Non-Interference Period, solicit, divert away or attempt to divert away business from any Company
Customer, either directly or indirectly. “Company Customer” is defined as any person, company, or business that Executive contacted, solicited, serviced, or had access to Confidential Information about. “Solicit” is defined as
soliciting, inducing, attempting to induce, or assisting any other person, firm, entity, business or organization, whether direct or indirect, in any such solicitation, inducement or attempted inducement, in all cases regardless of whether the
initial contact was by Executive, the Company Customer, or any other person, firm, entity, business, or organization. 
 (iii)
Executive further agrees that during the Non-Interference Period, he will not directly or indirectly: (a) solicit, entice, persuade or induce any employee, agent or representative of the Company, who was an employee, agent or representative of
the Company upon the termination or expiration of this Agreement, to terminate such person’s relationship with the Company or to become employed by any business or person other than the Company; (b) approach any such person for any of the
foregoing purposes; (c) authorize, solicit or assist in the taking of such actions by any third party; or (d) hire or retain any such person. 
 (iv) Executive further agrees that, during the Non-Interference Period, he shall not own, manage, operate, control, invest or acquire an interest in, or otherwise similarly engage or participate in
(whether as a proprietor, owner, member, partner, stockholder, director, officer, employee, consultant, joint venturer, investor, sales representative or other participant) any Competitor or business or entity that owns or operates, or controls
another business or entity that owns or operates a Competitor located in the Prohibited Market; provided, however, that the foregoing provisions shall not prohibit the Employee from: (a) being a passive investor in any publicly traded entity,
as long as any such investment does not exceed ten percent (10%) of the outstanding equity securities of such entity; (b) continuing as a non controlling investor in any entity which subsequent to the date of the Executive’s
investment therein becomes the owner or operator of, or acquires control of another business or entity that owns or operates, a Competitor in a Prohibited Market (provided that if any entity in which the Executive is a non controlling investor
acquires a non-standard automobile insurance provider in a Prohibited Market, the Executive shall limit his participation in such entity to a passive role); or (c) investing in or becoming employed by any entity whose ownership, operation or
control of a Competitor is not material relative to its principal business activities provided Executive’s participation in such a Competitor is not a material part of Executive’s duties. 

(v) If Executive requests, the Company will notify Executive in writing within fourteen (14) business days of the request whether
any action proposed to be taken by Executive would be viewed by the Company in good faith to be inconsistent with Executive’s obligations in this Section 8(b). If the Company informs Executive that it would not consider such action to be a
violation of any of Executive’s obligations in this Section 8(b), then the Company shall have forever waived any claim that such action taken by Executive violates any of Executive’s obligations in this Section 8(b). 

 (vi) Nothing in this Section 8(b) shall be interpreted to restrict Executive from
engaging in the private practice of law. 
 (c) Non-Disparagement. During the term of Executive’s employment with
the Company and following the termination or expiration of this Agreement for any reason, Executive shall not disparage, discredit or otherwise criticize, directly or indirectly, verbally or in writing, the Company or any of its subsidiaries, or any
of their respective businesses, products, practices, trademarks, employees, officers, or directors. Further, during the term of Executive’s employment with the Company and following the termination or expiration of this Agreement, the Company
shall not disparage, discredit or otherwise criticize, directly or indirectly, verbally or in writing, Executive. 
 (d)
Acknowledgement. Executive acknowledges that the compensation and Confidential Information provided to Executive pursuant to this Agreement, give rise to the Company’s interest in restraining Executive from competing with the Company,
that the noncompetition and nonsolicitation covenants are designed to enforce such consideration and that any limitations as to time, geographic scope and scope of activity to be restrained as defined herein are reasonable and do not impose a
greater restraint than is necessary to protect the goodwill or other business interest of the Company. 
 (e) Survival of
Covenants. Sections 7 and 8 shall survive the expiration or termination of this Agreement for any reason. Executive agrees not to challenge the enforceability or scope of Sections 7 and 8. Executive further agrees to notify all future persons,
businesses, or other entities, with which he becomes affiliated or employed by, of the restrictions set forth in Sections 7 and 8, prior to the commencement of any such affiliation or employment. 

9. Severability and Reformation. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be
determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions shall remain in full force and effect, and the invalid, void or unenforceable provisions shall
be deemed severable. Moreover, if any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be reformed by limiting and
reducing it to the minimum extent necessary, so as to be enforceable to the extent compatible with the applicable law as it shall then appear. 
 10. Entire Agreement. This Agreement sets forth the entire agreement between the parties hereto and fully supersedes any and all prior agreements or understandings, written or oral, between the
parties hereto pertaining to the subject matter hereof. 
 11. Notices. All notices and other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by certified mail (return receipt requested) or sent by overnight delivery service, or electronic mail, or facsimile
transmission (with electronic confirmation of successful transmission) to the parties at the following addresses or at such other addresses as shall be specified by the parties by like notice, in order of preference of the recipient: 

			
	If to the Company:	  	Chief Executive Officer
		  	Affirmative Insurance Holdings, Inc.
		  	150 Harvester Drive, Suite 300
		  	Burr Ridge, Illinois 60527

  

			
	If to Executive:	  	Joseph G. Fisher
		  	To such address as specified by the
		  	Executive to the Company from time to time
		  	in writing.

 Notice so given shall, in the case of mail, be deemed to be given and received on the fifth calendar day after posting,
in the case of overnight delivery service, on the date of actual delivery and, in the case of facsimile transmission or personal delivery, on the date of actual transmission or, as the case may be, personal delivery. 

12. Governing Law and Venue. This Agreement will be governed by and construed in accordance with the laws of the State of
Illinois, without regard to any conflict of laws rule or principle which might refer the governance or construction of this Agreement to the laws of another jurisdiction. Any action or arbitration in regard to this Agreement or arising out of its
terms and conditions, pursuant to Sections 26 and 27, shall be instituted and litigated only in Chicago, Illinois. 
 13.
Assignment. This Agreement is personal to Executive and may not be assigned in any way by Executive without the prior written consent of the Company. The Company may assign its rights and obligations under this Agreement. 

14. Counterparts. This Agreement may be executed in counterparts, each of which will take effect as an original, and all of which
shall evidence one and the same Agreement. 
 15. Amendment. This Agreement may be amended only in writing signed by
Executive and by a duly authorized representative of the Company (other than Executive). 
 16. Construction. The
headings and captions of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement. The language in all parts of this Agreement shall be in all cases construed in accordance to
its fair meaning and not strictly for or against the Company or Executive. 
 17. Non-Waiver. The failure by either party
to insist upon the performance of any one or more terms, covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment of any right granted hereunder or of any future performance of any such term, covenant or
condition, and the obligation of either party with respect hereto shall continue in full force and effect, unless such waiver shall be in writing signed by the Company (other than Executive) and Executive. 

18. Announcement. Company shall have the right to make public announcements concerning the execution of this Agreement and the
terms contained herein, at the Company’s discretion. 

 19. Use of Name, Likeness and Biography. Company shall have the right (but not the
obligation) to use, publish and broadcast, and to authorize others to do so, the name, approved likeness and approved biographical material of Executive to advertise, publicize and promote the business of Company and its affiliates, but not for the
purposes of direct endorsement without Executive’s consent. This right shall terminate upon the termination of this Agreement. An “approved likeness” and “approved biographical material” shall be, respectively, any
photograph or other depiction of Executive, or any biographical information or life story concerning the professional career of Executive. 
 20. Corporate Opportunities. Executive acknowledges that during the course of Executive’s employment by Company, Executive may be offered or become aware of business or investment
opportunities in which Company may or might have an interest (a “Corporate Opportunity”) and that Executive has a duty to advise Company of any such Corporate Opportunities before acting upon them. Accordingly, Executive agrees:
(a) that Executive will disclose to the Board any Corporate Opportunity offered to Executive or of which Executive becomes aware, and (b) that Executive will not act upon any Corporate Opportunity for Executive’s own benefit or for
the benefit of any Person other than Company without first obtaining consent or approval of the Board (whose consent or approval may be granted or denied solely at the discretion of the Board; provided, that Executive, at Executive’s election,
may act upon any such Corporate Opportunity for Executive’s benefit or the benefit of any other Person if the Board has not caused Company to act upon any such Corporate Opportunity within sixty (60) days after disclosure of such Corporate
Opportunity to Company by Executive. 
 21. Right to Insure. Company shall have the right to secure, in its own name or
otherwise, and at its own expense, life, health, accident or other insurance covering Executive, and Executive shall have no right, title or interest in and to such insurance. Executive shall assist Company in procuring such insurance by submitting
to examinations and by signing such applications and other instruments as may be required by the insurance carriers to which application is made for any such insurance. 
 22. Assistance in Litigation. Executive shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the future
against or on behalf of the Company that relate to events or occurrences that transpired while Executive was employed by the Company. Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being
available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. Executive also shall cooperate fully with the Company in connection with any investigation or review by
any federal, state, or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company. The Company will pay Executive Two Thousand and no/100 dollars
($2,000) per eight-hour day for the Executive’s cooperation pursuant to this Section 22. 
 23. No Inconsistent
Obligations. Executive represents and warrants that to his knowledge he has no obligations, legal, in contract, or otherwise, inconsistent with the terms of this Agreement or with his undertaking employment with the Company to perform the duties
described herein. Executive will not disclose to the Company, or use, or induce the Company to use, any confidential, proprietary, or trade secret information of others. Executive represents and warrants that to his knowledge he has returned all
property and confidential information belonging to all prior employers, if he is obligated to do so. 

 24. Notification of New Employer. Upon termination of this Agreement for any reason,
or expiration of this Agreement, Executive hereby consents to the notification by the Company to Executive’s new employer of Executive’s rights and obligations under this Agreement. In addition, in the event that Executive plans to render
services to a company that works in a similar field as the Company, Executive agrees to provide the Company with as much notice as possible of Executive’s intention to join that company or business but in no event will Executive provide less
than two weeks notice of that intention; provided, however, the provision of such notice and the Company’s receipt thereof shall not constitute a waiver of any breach of any provision of this Agreement. 

25. Binding Agreement. This Agreement shall inure to the benefit of and be binding upon Executive, his heirs and personal
representatives, and the Company, its successors and assigns. 
 26. Remedies. The parties recognize and affirm that in
the event of a breach of Sections 7 and 8 of this Agreement, money damages would be inadequate and the Company would not have an adequate remedy at law. Accordingly, the parties agree that in the event of a breach or a threatened breach of Sections
7 and 8, the Company may, in addition and supplementary to other rights and remedies existing in its favor, apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce
or prevent any violations of the provisions hereof (without posting a bond or other security). In addition, Executive agrees that in the event a court of competent jurisdiction or an arbitrator finds that Executive violated Sections 7 or 8, the time
periods set forth in those Sections shall be tolled until such breach or violation has been cured. Executive further agrees that the Company shall have the right to offset the amount of any damages resulting from a breach by Executive of Sections 7
or 8 against any payments due Executive under this Agreement. The parties agree that if one of the parties is found to have breached this Agreement by a court of competent jurisdiction, the breaching party will be required to pay the non-breaching
party’s attorneys’ fees. 
 27. Arbitration. Other than as stated in Section 26, the parties agree that
any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be resolved by arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules. The
arbitration will take place in Chicago, Illinois. All disputes shall be resolved by a one (1) arbitrator. The method for selecting the arbitrator is set forth in the AAA’s Commercial Arbitration Rules. The arbitrator will have the
authority to award the same remedies, damages, and costs that a court could award, and will have the additional authority to award those remedies set forth in Section 26. The arbitrator shall issue a reasoned award explaining the decision, the
reasons for the decision, and any damages awarded, including those set forth in Section 26 where the arbitrator finds Executive violated Sections 7 or 8. The arbitrator’s decision will be final and binding. The judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction thereof. The arbitration proceedings, any record of the same, and the award shall be considered Confidential Information under this Agreement. This provision and any decision
and award hereunder can be enforced under the Federal Arbitration Act. 

 28. Indemnification. The Company agrees that if Executive is made a party to or
involved in, or is threatened to be made a party to or otherwise to be involved in, any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was an
officer or employee of the Company or is or was serving at the request of the Company as an officer, member, employee or agent of another corporation, limited liability corporation, partnership, joint venture, trust or other enterprise, including
service with respect to employee benefit plans, whether or not the basis of such Proceeding is Executive’s alleged action in an official capacity while serving as an officer, member, employee or agent, Executive shall be indemnified and held
harmless by the Company against any and all liabilities, losses, expenses, judgments, penalties, fines and amounts reasonably paid in settlement in connection therewith, to the fullest extent legally permitted or authorized by the Company’s
By-laws or, if greater, by the laws of the State of Delaware, as may be in effect from time to time, except that this Section 28 shall not apply to the following Proceedings: (a) any Proceeding initiated or brought voluntarily by Executive
against the Company or its directors, officers employees or other indemnitees, unless the Board of Directors has authorized or consented to the initiation of the Proceeding (or any part of the Proceeding), and (b) for an accounting of profits
made from the purchase and sale (or sale and purchase) by Executive of securities of the Company within the meaning of Section 16(b) of the Exchange Act or any similar successor statute. The rights conferred on Executive by this Section 28
shall not be exclusive of any other rights which Executive may have or hereafter acquire under any statute, the By-laws, agreement, vote of stockholders or disinterested directors, or otherwise. The indemnification provided for by this
Section 28 shall continue until and terminate upon the latest of: (a) the statute of limitations applicable to any claim that could be asserted against Executive with respect to which he may be entitled to indemnification under this
Section 28, (b) ten years after the date that Executive has ceased to serve as a director or officer of the Company or as a director, officer, employee, member, or agent of any other corporation, limited liability corporation, partnership,
joint venture, trust or other enterprise at the request of the Company, or (c) if, at the later of the dates referred to in (a) and (b) above, there is a pending Proceeding in respect of which Executive is granted rights of
indemnification under this Section 28, one year after the final termination of such Proceeding, including any and all appeals. The indemnification provided for by this Section 28 shall inure to the benefit of his heirs, executors and
administrator 
 29. Fees and Expenses. To induce the Executive to execute this Agreement and to provide the Executive
with reasonable assurance that the purposes of this Agreement will not be frustrated by the cost of its enforcement should the Company fail to perform its obligations under this Agreement: 

(a) In the event that the Executive’s employment is terminated by the Company prior to a Change in Control either for Cause or
without Cause, the Company shall reimburse the Executive for any reasonable attorneys’ fees, expenses and court costs incurred by the Executive as a result of any litigation by the Executive regarding the validity, enforceability or
interpretation of any provision of this Agreement (except as stated in Section 8(e), and including as a result of any litigation by the Executive regarding the benefits payable to the Executive pursuant to this Agreement); provided, however,
that such reimbursement shall only be payable by the Company (i) if the Executive prevails on any material issues involved in such litigation and (ii) upon receipt of proof of such expenses. 

 (b) In the event that the Executive’s employment is terminated after a Change in
Control either by the Company either for Cause or without Cause or by the Executive for Good Reason, the Company shall reimburse the Executive for any reasonable attorneys’ fees, expenses and court costs incurred by the Executive as a result of
any litigation by the Executive regarding the validity, enforceability or interpretation of any provision of this Agreement (except as stated in Section 8(e)), and including as a result of any litigation by the Executive regarding the benefits
payable to the Executive pursuant to this Agreement) upon receipt of proof of such expenses regardless of which party, if any, prevails in the contest. 
 (c) The term “Change in Control” shall mean a transaction or event (or series of transactions or events) as a result of which any “person” as such term is used in Section 13(d)
and 14(d) of the Exchange Act (other than any Excluded Person, the Company or any Company employee benefit plan, including its trustees) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of all of the securities of the Company held by New Affirmative LLC held immediately prior to such transaction or event (or series of transactions or events) and all director designees of New Affirmative LLC are no longer on the
Company’s Board; provided, however, that in no event shall the distribution, sale, transfer, or acquisition of securities of the Company held by New Affirmative LLC or any Excluded Persons (or any successor thereof) to any Excluded Person
trigger a “Change in Control.” “Excluded Person” shall mean any of New Affirmative LLC, Affirmative Investment LLC, The Enstar Group, Inc. and any of their respective stockholders, members, affiliates, subsidiaries, or any such
persons under common control. 
 30. Voluntary Agreement. Each party to this Agreement has read and fully understands the
terms and provisions hereof, has had an opportunity to review this Agreement with legal counsel, has executed this Agreement based upon such party’s own judgment and advice of counsel (if any), and knowingly, voluntarily, and without duress,
agrees to all of the terms set forth in this Agreement. The parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if
drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party because of authorship of any provision of this Agreement. Except as expressly set forth in this Agreement, neither the parties nor
their affiliates, advisors and/or their attorneys have made any representation or warranty, express or implied, at law or in equity with respect of the subject matter contained herein. Without limiting the generality of the previous sentence, the
Companies, their affiliates, advisors, and/or attorneys have made no representation or warranty to Executive concerning the state or federal tax consequences to Executive regarding the transactions contemplated by this Agreement. 

31. Section 409A. To the extent any amounts payable hereunder are deferred compensation within the meaning of
Section 409A, this Agreement is intended to comply with Section 409A and the terms of this Agreement shall be applied consistent with the requirements of Section 409A. To the extent that any provision of this Agreement is or will be
in violation of Section 409A, the Company and Executive agree to amend this Agreement so that it complies 

 
with Section 409A. If any amounts payable under this Agreement would be subject to any penalty tax by reason of the application of Section 409A, the Company will use commercially
reasonable efforts to take such reasonable steps as it may determine to be necessary or desirable, with Executive’s consent, to ensure that such amounts are not subject to such penalty tax. However, any such tax under Section 409A is
ultimately the responsibility of the Executive. Executive is advised to seek tax advice and agrees to assume such personal tax liability as may be incurred under this Agreement. 

Each amount to be paid or benefit to be provided to Executive pursuant to this Agreement shall be construed as a separate identified
payment for purposes of Section 409A. Amounts reimbursable under Section 5(a)(iii) and Section 28 of this Agreement shall be paid on or before the last day of the year following the year in which the applicable expense was incurred,
the amount of expenses eligible for reimbursement (and in-kind benefits provided to Executive) during any one year may not effect amounts reimbursable or provided in any subsequent year, and the right to reimbursement (and in-kind benefits provided
to Executive) shall not be subject to liquidation or exchange for another benefit. 
 <remainder of page intentionally left
blank> 
 IN WITNESS WHEREOF, the Company and Executive have executed this Agreement, as of the Effective Date. 

 
  

									
		 		 		 	COMPANY
					
	Dated:	 	January 4, 2011	 		 	By:	 	/s/ Gary Y. Kusumi
		 		 		 		 	Name: Gary Y. Kusumi
		 		 		 		 	Title: President & Chief Executive Officer
				
		 		 		 	EXECUTIVE
					
	Dated:	 	January 4, 2011	 		 	By:	 	/s/ Joseph G. Fisher
		 		 		 		 	Name: Joseph G. Fisher

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