Document:

Ex-10.16

Exhibit 10.16

Summary of Compensation for

Non-Employee Directors and Named Executive Officers

Non-Employee Director Compensation Summary

Annual Retainer

$20,000

Additional $5,000 for serving as chair of audit committee

Retainers are payable in cash in equal, quarterly installments in arrears

Board and Committee Meeting Fees

$2,000 per meeting for each Board of Directors meeting attended

$1,000 per meeting for each Board committee meeting attended

Annual Equity Award

1,000 shares of restricted stock are awarded to all non-employee directors (other than Gerald J.
Ford and Donald J. Edwards) pursuant to the 2002 Long Term Incentive Plan of First Acceptance
Corporation (the “Company”), on the date of each annual meeting of the Company’s stockholders.

Named Executive Officer Compensation Summary

Current salaries for named executive officers:

	 	 	 	 	 	 	 
	Name	 	Title	 	Salary
	Stephen J. Harrison
	 	Chief Executive Officer	 	$	500,000	 
	 
	 	 	 	 	 	 
	Edward L. Pierce
	 	President	 	 	400,000	 
	 
	 	 	 	 	 	 
	Thomas M. Harrison, Jr. (1)
	 	Former Executive Vice President and Secretary	 	 	300,000	 
	 
	 	 	 	 	 	 
	Kevin P. Cohn
	 	Senior Vice President and Chief Financial Officer	 	 	250,000	 
	 
	 	 	 	 	 	 
	Randy L. Reed (1)
	 	Former Senior Vice President — Sales	 	 	213,500	 
	 
	 	 	 	 	 	 
	Dan L. Walker
	 	Senior Vice President — Operations	 	 	207,500	 
	 
	 	 	 	 	 	 
	Keith E. Bornemann
	 	Corporate Controller	 	 	135,000	 

     Under the terms of his employment agreement, Stephen J. Harrison is entitled to receive an
annual bonus equal to up to 100% of his base salary, based upon the attainment of performance-based
objectives established by the Company’s Board of Directors. Under the terms of their respective
employment agreements, Edward L. Pierce, Kevin P. Cohn, Dan L. Walker and Keith E. Bornemann are
entitled to receive an annual bonus of up to 75%, 66.7%, 50% and 35%, respectively, of their base
salaries, provided that the annual bonus for Edward L. Pierce and Kevin P. Cohn will be no less
than $75,000 and $83,750, respectively, for fiscal 2008.

 

			
	(1)	 	Messrs. Thomas M. Harrison, Jr. and Reed entered into separation agreements
effective December 31, 2007 and May 22, 2008, respectively.

 

 

     The named executive officers of the Company may also receive bonuses as determined in the
discretion of the Compensation Committee.

     The named executive officers may also receive stock-based awards pursuant to the Company’s
stockholder-approved 2002 Long Term Incentive Plan as determined in the discretion of the
Compensation Committee.

Additional Information

     The foregoing information is summary in nature. Additional information regarding director and
named executive officer compensation will be provided in the Company’s Proxy Statement to be filed
in connection with the Company’s Annual Meeting of Stockholders to be held on November 5, 2008.Ex-10.38

Exhibit 10.38

WAIVER AND SIXTH AMENDMENT TO

REVOLVING CREDIT AND TERM LOAN AGREEMENT

     THIS WAIVER AND SIXTH AMENDMENT TO REVOLVING CREDIT AND TERM LOAN AGREEMENT (this “Waiver and
Amendment”) is dated the 10th day of September, 2008 by and among FIRST ACCEPTANCE
CORPORATION (the “Borrower”), SUNTRUST BANK as Administrative Agent and as a Lender and FIRST BANK
as a Lender.

RECITALS:

     A. The Borrower, Administrative Agent and Lenders are parties to a Revolving Credit and Term
Loan Agreement dated as of January 12, 2006 (as previously amended by the Waiver and First
Amendment to Revolving Credit and Term Loan Agreement, as previously amended by the Waiver and
Second Amendment to Revolving Credit and Term Loan Agreement, as previously amended by the Waiver
and Third Amendment to Revolving Credit and Term Loan Agreement, as previously amended by the
Waiver and Fourth Amendment to Revolving Credit and Term Loan Agreement, as previously amended by
the Waiver and Fifth Amendment to Revolving Credit and Term Loan Agreement, and as amended from
time to time, collectively, the “Credit Agreement”).

     B. Borrower has requested a waiver of compliance by the Borrower with certain provisions of
the Credit Agreement, wishes to permanently prepay principal amounts owed under the Credit
Agreement and has requested that certain provisions of the Credit Agreement be amended.

     C. Subject to the terms of this Sixth Amendment to Revolving Credit and Term Credit Agreement,
the Lenders have agreed to such waivers and amendments as set forth herein.

     D. Terms not defined herein shall have the meanings ascribed to such terms in the Credit
Agreement.

     NOW, THEREFORE, in consideration of the foregoing, the covenants and agreements contained
herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

     Section 1. Waiver of Compliance with Section 6.1 for Certain Period. Compliance by
the Borrower with the terms of Section 6.1 of the Credit Agreement for the quarter ending June 30,
2008 is hereby waived.

     Section 2. Waiver of Compliance with Section 6.2 for Certain Period. Compliance by the
Borrower with the terms of Section 6.2 of the Credit Agreement for the quarter ending June 30, 2008
is hereby waived.

     Section 3. Waiver of Compliance with Section 6.6 for Certain Period. Compliance by
the Borrower with the terms of Section 6.6 of the Credit Agreement for the quarter ending June 30,
2008 is hereby waived.

 

 

     Section 4. Financial Covenant Waiver. Compliance with the terms of Section 6.1, 6.2,
6.3, 6.5 and 6.6 of the Credit Agreement for the quarter ending September 30, 2008 is hereby
waived.

     Section 5. Cancellation of Revolving Loan Commitment. Effective as of the date
hereof, the Borrower shall not be entitled to request, and the Lenders shall not be required to
make, any Revolving Loans. The Revolving Commitments are hereby cancelled.

     Section 6. Mandatory Principal Prepayment. The parties acknowledge that the Borrower
made a principal prepayment of $1,000,000 with respect to the Term Loans on August 8, 2008.

     Section 7. Full Payment of Outstanding Term Loan. The outstanding principal balance of
the Term Loans, together with accrued interest, shall be paid in full by the Borrower on or before
October 31, 2008. In addition, the Borrower shall pay any and all other amounts due under the
Credit Agreement on or before October 31, 2008.

     Section 8. Representations and Warranties. To induce the Administrative Agent, the
Issuing Bank, the Swingline Lender and the Lenders to enter into this Waiver and Amendment, the
Borrower hereby represents and warrants to the Lenders that:

     (a) Reaffirmation. As of the date of this Waiver and Amendment and after
giving effect to this Waiver and Amendment, the representations and warranties set forth in
Article IV of the Credit Agreement are true and correct in all material respects
(except to the extent that any such representation or warranty expressly relates to a
specified earlier date, in which case such representation or warranty shall be true and
correct as of such earlier date, and except for changes in facts and circumstances which are
not prohibited by the terms of the Credit Agreement); and

     (b) No Default. As of the date hereof and after giving effect to this Waiver
and Amendment, no Default or Event of Default shall have occurred and be continuing.

     Section 9. Payment of Expenses. The Borrower agrees to pay or reimburse the
Administrative Agent for its reasonable out-of-pocket costs and expenses incurred in connection
with the preparation and execution of this Waiver and Amendment.

     Section 10. Conditions. The effectiveness of this Waiver and Amendment is subject to
the satisfaction of the following conditions precedent:

     (a) The Lenders shall have received this Waiver and Amendment (and any other documents
necessary to evidence the transactions relating thereto) duly executed by the Borrower and
the Guarantors, as applicable;

     (b) No Default or Event of Default shall exist; and

     (c) The Administrative Agent shall have received an incumbency certificate with respect
to the officer(s) of Borrower executing this Waiver and Amendment, a

2

 

certificate of existence for the Borrower and resolutions of the Board of Directors of
the Borrower.

     Section 11. Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

     Section 12. Severability; Headings. Any provision of this Waiver and Amendment which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability, without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. The section and
subsection headings used in this Amendment are for convenience of reference only and are not to
affect the construction hereof or to be taken into consideration in the interpretation hereof.

     Section 13. Continuing Effect of Other Documents. This Waiver and Amendment shall not
constitute an amendment or waiver of any other provision of the Credit Agreement not expressly
referred to herein and, except to the extent that the Credit Agreement expressly has been amended
hereby, shall not be construed as a waiver or consent to any further or future action on the part
of the Borrower that would require a waiver or consent of the Required Lenders or the
Administrative Agent. Except as expressly amended, modified or supplemented hereby, the provisions
of the Credit Agreement are and shall remain in full force and effect.

     Section 14. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

3

 

     IN WITNESS WHEREOF, the parties hereto have executed this Waiver and Sixth Amendment to
Revolving Credit and Term Loan Agreement as of the date first set forth above.

	 	 	 	 	 	 	 
	 	 	FIRST ACCEPTANCE CORPORATION
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Title:	 	Treasurer	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SUNTRUST BANK, as Administrative Agent and as a
Lender
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ William Christensen	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Title:	 	Director	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	FIRST BANK, as a Lender
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Doug Remke	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Title:	 	Vice President	 	 
	 
	 	 	 	 	 

4

 

CONSENT OF GUARANTORS

The undersigned, each a Guarantor, as defined in the Subsidiary Guarantee Agreement, hereby execute
this Waiver and Sixth Amendment to Revolving Credit and Term Loan Agreement to evidence their
consent thereto, as well as the transactions contemplated thereby, and agree that the Subsidiary
Guarantee Agreement dated January 12, 2006, remains in full force and effect.

	 	 	 	 	 	 	 
	 	 	USAUTO HOLDINGS, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSIT AUTOMOBILE CLUB, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ALABAMA ACCEPTANCE INSURANCE AGENCY, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ACCEPTANCE INSURANCE AGENCY OF TENNESSEE, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 

5

 

	 	 	 	 	 	 	 
	 	 	ACCEPTANCE INSURANCE AGENCY, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	FIRST ACCEPTANCE SERVICES, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ACCEPTANCE INSURANCE AGENCY OF ILLINOIS, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LNC HOLDINGS, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ACCEPTANCE INSURANCE AGENCY OF TEXAS, INC., as a Guarantor
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Michael Bodayle	 	 
	 
	 	 	 	 	 
	 
	 	 	 	Name: Michael Bodayle	 	 
	 
	 	 	 	Title: Treasurer	 	 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]