Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On July 16, 2012, the Board of Directors of First Acceptance Corporation, or the Company, appointed Joseph S. Borbely as President of the Company and Mark A. Kelly resigned from his role as President. Mr. Kelly will continue as Chief Executive Officer of the Company.

Mr. Borbely (age 55) has served as the Company's Senior Vice President of Sales and Marketing since July 2011 and has over thirty years of experience in the Financial Services Industry and Specialty Retail. Prior to joining the Company, Mr. Borbely served as President of EZMONEY, a division of EZCorp Inc., operating over 550 consumer financial service centers in the United States and Canada. From 2007 to 2009, Mr. Borbely served as Senior Vice President of Store Operations at Hancock Fabrics Inc., a national chain of retail stores offering textiles and related accessories. From 2005 to 2007, Mr. Borbely served as Executive Vice President - Head of Stores at Allied Cash Holdings, a national provider of consumer short term loans. Mr. Borbely served with Hollywood Video, a national chain of over 2,000 superstores, from 1996 to 2005 holding various executive positions that ultimately led to his promotion to National Vice President of Operations. Mr. Borbely has held the positions of Regional Vice President, District Manager and Training Manager for several major retailers such as J. Baker Inc. and the Woolworth Corporation.

Additionally, in connection with the appointment of Mr. Borbely as President, the Board of Directors of the Company increased the annual base salary of Mr. Borbely to $300,000 per year.

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