UNITED INSURANCE HOLDINGS CORP. A Delaware Corporation Employment Agreement

The Executive will be the Chief Executive Officer (“CEO”) of the Company and has the requisite experience to serve as such.

The Executive, in his duties, will come to possess intimate knowledge of the business and affairs of the Company and its Subsidiaries their policies, methods and personnel.

The Board of Directors (the “Board”) of the Company recognizes that the Executive's contribution, as CEO of the Company, to the growth and success of the Company and its Subsidiaries will be substantial and desires to assure the Company of the Executive's employment in an executive capacity and to compensate him therefore.

The Board has determined that this Agreement will reinforce and encourage the Executive's continued attention and dedication to the Company and its Subsidiaries.

The Executive is willing to make his services available to the Company and its Subsidiaries on the terms and conditions hereinafter set forth.

Term

Term of Employment. The Company shall employ the Executive and the Executive shall continue to serve the Company and its Subsidiaries, on the terms and conditions set forth herein, for an initial term of five (5) years from the date first written above, unless terminated earlier (“Initial Employment Term”). At the conclusion of the five (5) year period, the initial employment term shall be automatically extended consecutive one (1) year periods (“Employment Term”) unless either party provides at least ninety (90) days' written notice prior to the expiration of the Employment Term.

Duties of Executive. During the Employment Term, the Executive shall serve as CEO and shall perform the duties of an executive commensurate with such position, shall diligently perform all services as may be reasonably designated by the Board and shall exercise such power and authority as is necessary and customary to the performance of such duties and services. The Executive shall serve as a Director of the Corporation during the Employment Term, including any extension thereof. The Executive shall devote his services on a full-time basis to the business and affairs of the Company and the Subsidiaries. Notwithstanding the foregoing, the Executive may be involved with charitable organizations and serve as a Director of other non-competing companies with the express permission of the Board with said permission not to be unreasonably withheld. Additionally, the Executive may engage in such other pursuits, including, without limitation, personal, legal and financial affairs, as shall not interfere or conflict with the proper performance of his duties hereunder.

Base Salary. During the Employment Term, the Executive shall receive a minimum base salary at the annual rate of $450,000.00. The base salary shall be payable in substantially equal installments consistent with the Company's normal payroll schedule, subject to applicable withholding and other taxes. Base salary may be increased during the Employment Term but may not be decreased and the Board shall consider, on an annual basis, the nature, extent and advisability, if any, of an increase in the Executive's base salary.

Additional Cash Compensation. During the Employment Term, Executive shall be eligible to receive annual bonuses which, in the discretion of the Board, are payable to executive management. For calendar-year 2012, the Executive shall receive not less than $150,000.00 in bonus compensation. Annual bonuses will be based on achievement against goals established for the senior executive officer group including Executive by the Board in consultation with the Executive.

Long-Term Incentive Plan. The Executive shall develop and recommend to the Compensation Committee of the Company and the Board a long-term Executive Stock Based Incentive Plan to be considered by the Compensation Committee and the Board.

Initial Equity Stock Award Grant. The Executive shall receive an initial equity award in the Company equaling $500,000.00, valued at book value as of March 31, 2012 and granted as of the Effective Date of this Agreement, which shall vest in equal parts (twenty percent of initial equity stock award grant per year) on each annual anniversary of the Effective Date of this Agreement ending on the fifth (5^th) anniversary of this Agreement. Unless otherwise provided herein, each portion of the initial equity in the Company shall vest only if the Executive is employed by the Company at the conclusion of each annual anniversary of the Effective Date of this Agreement.

Other Benefits.

Expense Reimbursement. During the Employment Term, the Company, upon the submission of supporting documentation by the Executive, and in accordance with Company policies for its executives, shall reimburse the Executive for all expenses actually paid or incurred by the Executive in the course of and pursuant to the business of the Company and the Subsidiaries, including expenses for travel and entertainment, for which the Executive shall have an expense allowance as set by the Board of Managers from time to time.

Other Benefits. During the term, Executive will be eligible to participate, on terms which are generally available to the other senior executives of the Company and subject to the eligibility requirements of the applicable Company plans as in effect from time to time, in the Company's, deferred compensation, medical, dental, vacation, life insurance and disability programs, and other benefits generally available to the Company's senior executives from time to time.

Working Facilities. During the Employment Term, the Company shall furnish the Executive with an office, and such other facilities and services suitable to his position and adequate for the performance of his duties hereunder.

Vacation. During the Employment Term, Executive shall be entitled to reasonable vacations during each year of the Term, the time and duration thereof to be determined by mutual agreement between Executive and the Company.

Termination for Cause. Notwithstanding anything contained in this Agreement to the contrary, this Agreement may be terminated at any time by the Company for Cause. As used in this Agreement “Cause” shall only mean (i) any action or omission of the Executive which constitutes a material breach of this Agreement, (ii) willful failure to perform the duties assigned to the Executive by the Board, from time to time; (iii) fraud, breach of fiduciary duty, embezzlement or misappropriation as against the Company, or (iv) the conviction (from which no appeal can be taken) of Executive for any criminal act which is a felony. For purposes of this Paragraph 4.1, an act or failure to act shall be considered “willful” only if done or omitted to be done without a good faith reasonable belief that such act or failure to act was in the best interests of the Company. With respect to clause (i) and (ii) above, the Company shall provide Executive written notice of the alleged violation and allow Executive ten (10) business days to cure the violation. Upon a failure of Executive to cure the violation under clause (i) and (ii), above, the Company shall cause a special meeting of the Board to be called and held at a time mutually convenient to the Board and Executive, but in no event later than fifteen (15) business days after the occurrence of the alleged breach. Executive shall have the right to appear before such special meeting of the Board to refute any determination of Cause specified in such

Any payments under this paragraph shall be made on or before March 15^th of the year following Executive's Termination for cause.

Termination Due to Death or Disability. In the event of the Executive's death, Executive's employment shall automatically cease and terminate as of the date of death. If Executive becomes Disabled, the Company may terminate Executive's employment upon thirty (30) days written notice to Executive. For purposes of this Agreement, the terms “Disabled” or “Disability” means Executive's inability, because of physical or mental illness or injury, substantially to perform his duties hereunder as a result of physical incapacity for a continuous period of at least six (6) months, and any dispute as to the Executive's incapacitation shall be resolved by an independent physician selected by the Board and reasonably acceptable to the Executive, whose determination shall be final and binding upon both the Executive and the Company. In the event of the termination of employment due to Executive's death or Disability, Executive or his estate or legal representatives shall be entitled to receive:

payment for all accrued but unpaid Base Salary as of the date of Executive's termination of employment;

reimbursement for expenses incurred by the Executive pursuant to. Paragraph 3.1 hereof up to and including the date on which employment is terminated;

any earned benefits to which the Executive may be entitled as of the date of termination pursuant to the terms of any compensation or benefit plans to the extent permitted by such plans (with the payments described in subsections (i) through (iii) above collectively called the “Accrued Payments”);

any annual incentive bonuses earned but not yet paid for any completed full fiscal year immediately preceding the employment termination date;

if employment termination occurs prior to the end of any fiscal year, a pro rata annual incentive bonus for such fiscal year in which employment termination occurs (based on actual business days in such fiscal year prior to such employment termination, divided by the total annual business days) determined and paid based on actual performance achieved for that fiscal year against the performance goals for that fiscal year;

in the case of death of Executive, the Company shall continue in force all benefits applicable to Executive's family for six (6) months.

Any payments under this paragraph shall be made on or before March 15^th of the year following Executive's death or Disability.

Termination Without Cause or for Good Reason. The Company may terminate Executive's employment hereunder without Cause at any time, by providing Executive 30 days' prior written notice of such termination. Such notice shall specify the Effective Date of the termination of Executive's employment. The Executive may terminate his employment for Good Reason by providing 30 days' prior written notice to the Company. In the event of the termination of Executive's employment under this Paragraph 4.3 without Cause or by the Executive for Good Reason, then Executive shall be entitled to:

payment of the Accrued Payments in full within the next normal payroll period following Termination;

a separation allowance, payable in equal installments in accordance with normal payroll practices, prorated over a 12 month period beginning immediately following the date of termination as follows: (i) if the separation occurs within the initial five year term of employment, an allowance equal to the sum of Executive's annual Base Salary for the entire year of separation; or (ii) if the separation occurs beyond the

any annual incentive bonuses earned but not yet paid for any completed full fiscal year immediately preceding the employment termination date, to be paid in full within the next normal payroll period following Termination;

if employment termination occurs prior to the end of any fiscal year, the annual incentive bonus for such fiscal year in which employment termination occurs for which Executive would have been entitled if employed at the conclusion of the fiscal year determined and paid based on actual performance achieved for such fiscal year against the performance goals for that fiscal year, to be paid in full within ninety days following completion of the fiscal year;

Executive's remaining equity stock award for the year of separation (twenty percent of initial equity stock award grant referenced in section 2.4, herein) shall automatically and immediately vest in full;

the Company shall arrange for the Executive to continue to participate (through COBRA or otherwise), on substantially the same terms and conditions as in effect for the Executive (including any required contribution) immediately prior to such termination, in the medical, dental, disability and life insurance programs provided to the Executive hereof as follows: (i) if the separation occurs within the initial five year term of employment, until the earlier of (a) the end of the 24 month period beginning on the Effective Date of the termination of Executive's employment hereunder, or (b) such time as the Executive is eligible to be covered by comparable benefit(s) of a subsequent employer (determined on a benefit-by-benefit and coverage-by-coverage basis); or (ii) if the separation occurs beyond the initial five year term of employment and occurs without the at least ninety (90) days notice contemplated in Paragraph 1.1, until the earlier of (a) the end of the current Employment Term year in which the separation occurs; or (b) such time as the Executive is eligible to be covered by comparable benefit(s) of a subsequent employer (determined on a benefit-by-benefit and coverage-by-coverage basis). The foregoing is referred to as “Benefits Continuation”. The Executive agrees to notify the Company promptly if and when he begins employment with another employer and if and when he becomes eligible to participate in any benefit or other welfare plans, programs or arrangements of another employer.

a reduction by the Company in Executive's Base Salary or Target Bonus as in effect from time to time; or

the Board materially reduces (including as a result of any co-sharing of responsibilities arrangement), other than during any period of illness or incapacity, Executive's authority, responsibilities, or duties such that Executive no longer has the title of, or serves or functions as, chief executive officer of the Company; or

the Company fails to maintain an annual and long-term incentive program for senior executives in which Executive participates; or

failure of the Board to nominate Executive for election to the Board of Directors at an annual meeting of shareholders; or

the Company requiring Executive to be based at a location in excess of thirty-five (35) miles from the location of the Company's principal executive office as of the Effective Date of this Agreement, except for required travel on Company business; or

the Company fails to obtain the written assumption of its obligations under this Agreement by a successor not later than the consummation of a merger, consolidation or sale of the Company; or

a material breach by the Company of its obligations under this Agreement.

Termination with 90 Days Notice Pursuant to Paragraph 1.1 Not to Extend Employment Term. Upon any termination by the Executive or the Company with at least ninety (90) days written notice not to extend the Employment Term pursuant to paragraph 1.1, the Company shall pay to the Executive any unpaid Base Salary accrued through the completion of the term of employment. In addition, the Company shall pay any benefits, if any, owed to Executive under any plan provided for Executive under Paragraph 3 hereof in accordance with the terms of such plan as in effect on the date of termination of employment under this Paragraph 4.4, as well as any annual incentive bonuses pursuant to Paragraph 2.2 hereof earned but not yet paid for any completed full fiscal year immediately preceding the employment termination date. Except as provided above, the Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however to the provisions of Paragraph 3.1 hereof).

Voluntary Termination by the Executive without Good Reason. In the event Executive terminates his employment without Good Reason during the employment term, he shall provide 90 days' prior written notice of such termination to the Company and shall forego any further compensation, including but not limited to foregoing further vesting of any equity stock award not vested as of the date of termination, however, all Accrued Payments shall be made to Executive. A termination of employment by the Executive without Good Reason upon ninety (90) days prior written notice will not constitute a breach by the Executive of this Agreement.

Specified Employee. Notwithstanding anything to the contrary in this Agreement, if at the time of Employee's termination of employment Employee is a “specified employee,” as defined below, any and all amounts payable to Employee on account of such separation from service that would be nonqualified deferred compensation and would (but for this provision) be payable within six (6) months following the date of termination, shall instead be paid in a single sum on the next regular payday following the expiration of such six (6) month period or, if earlier, the date of Employee's death; except (A) to the extent of amounts that do not constitute a deferral of compensation within the meaning of Treasury regulation Section 1.409A-1(b), as determined by the Company in its discretion; (B) benefits which qualify as excepted welfare benefits pursuant to Treasury regulation Section 1.409A-1(a)(5); or (C) other amounts or benefits that are not subject to the requirements of Section 409A, shall not be subject to any such acceleration.

Separation from Service. For purposes of this Agreement, all references to “termination of employment” and correlative phrases shall be construed to require a “separation from service” (as defined in Section 1.409A-1 (h) of the Treasury regulations after giving effect to the presumptions contained therein), and the term “specified employee” means an individual determined by the Company to be a specified employee under Treasury regulation Section 1.409A-1(i).

409A Compliance. Payments under this Agreement are intended either to be exempt from the rules of Section 409A or to satisfy those rules, and the Agreement shall be construed accordingly.

Resignation from all Boards. Upon any termination or cessation of Executive's employment with the Company, for any reason, Executive agrees immediately to resign, and any notice of termination or actual termination or cessation of employment shall act automatically to effect such resignation, from any position on the Board and on any board of directors of any subsidiary or affiliate of the Company.

Release of Claims as Condition. The Company's obligation to pay the separation allowance and provide all other benefits and rights (including equity vesting) referred to in this Agreement shall be conditioned upon the Executive having delivered to the Company an executed full and unconditional release (that is not subject to revocation) of claims against the Company, its parent entities, affiliates, employee benefit plans and fiduciaries, officers, employees, directors, agents and representatives satisfactory in form and content to the Company's and Executive's counsel.

No Mitigation. In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by Executive as a result of subsequent employment unless otherwise provided herein.

Restrictive Covenants.

Confidentiality/Non-Disclosure. “Confidential Information” shall mean any intellectual property, information, or trade secrets (whether or not specifically labeled or identified as “confidential” or “private”), in any form or medium, that is disclosed to, or developed or learned by, the Executive, and that relates to the business plan, underwriting, products, services, research, or development of or by the Company or its Subsidiaries, suppliers, distributors, customers, investors, partners, and/or other business associates, and that has not become publicly known. Confidential Information includes, but is not limited to, the following:

Internal business information (including but not limited to information relating to strategy, staffing, financial data, training, marketing, promotional and sales plans and practices, costs, bidding activities and strategies, rate and pricing structures, and accounting and business methods);

Identities of, negotiations with, individual requirements of, specific contractual arrangements with, and information about, the Company's or its Subsidiaries' suppliers, distributors, customers, investors, partners and/or other business associates, their contact information, and their confidential information;

Compilations of data and analyses, underwriting process and parameters, material processes, technical data, specific program information, trade or industrial practices, computer programs, formulae, systems, research, records, reports, manuals, documentation, customer and supplier lists, data and databases relating thereto, and technology and methodology regarding specific projects; and

Intellectual Property not generally available to the public, or published by the Company or its Subsidiaries.

To use the Confidential Information for the singular purpose of benefiting the Company and its Subsidiaries, and specifically not use the Company's and its Subsidiaries' customer or prospective customer data to conduct

Not to disclose Confidential Information, except to the extent the Executive is required to disclose or use such Confidential Information in the performance of the Executive's assigned duties for the Company or its Subsidiaries, to any Person without the prior express written consent of the Board of the Company, or their successors as an action permitted under the operating agreement of the Company;

To tender all Confidential Information to the Company, and destroy any of the Executive's additional notes or records made from such Confidential Information, immediately upon request by the Company or upon termination of this Agreement either during the Employment Term;

To promptly disclose and assign any right, title and interest to the Company all IP authored, made, conceived or actually reduced to practice, alone or jointly with others, (a) while performing duties for the Company or its Subsidiaries, or (b) during the Employment Term of this Agreement, or (c) which results or is suggested by any work done for or at the request of the Company or its Subsidiaries, or (d) which was aided by the use of trade secret information, whether or not during working hours and regardless of location;

To use best efforts to safeguard the Confidential Information and protect it against disclosure, misuse, espionage, loss, misappropriation and theft;

Immediately notify the Board of any breach of this Agreement; and

Assist the Company or its Subsidiaries, both during and after the termination of this Agreement, in obtaining and enforcing any legal rights in IP of the Company or its Subsidiaries, or assigned or to be assigned by the Executive to the Company or its Subsidiaries.

Non-Competition. The Executive covenants and agrees with the Company that the Executive will not, directly or indirectly, through the period ending on the first (1^st) annual anniversary of the last day of the Executive's employment with the Company own, manage, operate, join, control, assist, participate in or be connected with, directly or indirectly, as an officer, director, shareholders, partner, proprietor, employee, consultant, independent contractor, lender or otherwise, any Person who is directly or indirectly engaged in the business of the Company or its Subsidiaries, namely property and casualty insurance (“Competitive Business”), doing business within or from the State of Florida, or in any other state, province or territory in which the Company or its Subsidiaries conduct business (the “Territory”). The Executive's engaging in the following activities will not be deemed to be engaging or participating in a Competitive Business: (a) investment banking; (b) passive ownership of less than 5% of any class of securities of a company; and (c) engaging or participating solely in a noncompetitive business of an entity which also separately operates a business which is a “Competitive Business”.

If the Executive's employment is terminated by the Company without cause or by Executive with Good Reason in any year subsequent to the Initial Employment Term, the terms of this paragraph 5.2 shall apply for only the remainder of the twelve month employment term during which Executive's employment is terminated.

If the Executive's employment is terminated by either party in any year subsequent to the Initial Employment Term by giving the notice required in Section 1.1, the terms of this paragraph 5.2 shall not apply.

For all reasons for, and circumstances surrounding, termination of Executive's employment either during or subsequent to the Executive's Initial Employment Term other than those described in subsections (i) and (ii), above, the terms of this paragraph 5.2 shall apply.

Non-Solicitation. The Executive covenants and agrees with the Company that the Executive will not, directly or indirectly, for any Person, through the period ending on the second (2nd) annual anniversary of the last day of the Executive's Employment Term with the Company attempt to employ, divert away an employee, or enter into any

Consent to Injunction. The Executive acknowledges that any breach of a covenant contained in Paragraph 5 of this Agreement will result in irreparable injury to the Company or its Subsidiaries and that the Company's or its Subsidiaries' remedy at law for such a breach may be inadequate and will be extremely difficult to calculate or determine. Accordingly, the Executive agrees and consents that upon any such breach, the Company or its Subsidiaries shall, in addition to all other remedies available at law and in equity, be entitled to (A) both preliminary and permanent injunctions to prevent or halt any such breach or threatened breach, and (B) recover the cost of such attorney's fees as the Company or its Subsidiaries may incur to enforce it rights hereunder if the Company is a prevailing party in such litigation. Further, the Executive agrees that in the event of any breach hereunder, the Company or its Subsidiaries shall have the right to seek restraining orders and/or injunctions and the Executive hereby waives the right that the Company or its Subsidiaries be obligated to post any related bond otherwise required by law to be posted in connection with any restraining order and/or injunction filed against the Executive.

Severability. In the event that the provisions of this Agreement should ever be deemed to exceed the time or geographic limitations permitted by applicable law, then the provisions will be reformed to the maximum time or geographic limitations permitted by applicable law. Every provision of this Agreement is intended to be severable, and, if any term or provision is determined to be illegal, invalid or unenforceable for any reason whatsoever, and cannot be reformed, such illegal, invalid or unenforceable provision shall be deemed severed herefrom and shall not affect the validity, legality or enforceability of the remainder of this Agreement.

Books and Records. All books, records, accounts and similar repositories of Confidential Information of the Company and its Subsidiaries, whether prepared by the Executive or otherwise coming into the Executive's possession, shall be the exclusive property of the Company and shall be returned immediately to the Company and its Subsidiaries on termination of this Agreement or on the Board's request at any time.

Survival. The restrictions and obligations of this paragraph 5 shall survive any expiration, termination, or cancellation of the Employment Term of this Agreement and shall continue to bind the Executive and the Executive's respective heirs, executors, successors, administrators, representatives and agents.

Consolidation, Merger or Sale of Assets. Nothing in this Agreement shall preclude the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation which assumes this Agreement, and all obligations of the Company hereunder, in writing. Upon such consolidation, merger, or transfer of assets and assumption, the term "the Company" as used herein, shall mean such other corporation and this Agreement shall continue in full force and effect, subject to the provisions of Paragraph 6 hereof.

Indemnification. The Company agrees that the Executive shall be covered and insured up to the full limits provided by all directors' and officers' insurance which the Company then maintains to indemnify its directors and officers (and to indemnify the Company for any obligations which it incurs as a result of its undertaking to indemnify its officers and directors), subject to applicable deductibles and to the terms and conditions of such policies as well as provided under any policy of indemnification then in effect for the Company.

Enforceability. It is the intention of the parties that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies of each state and jurisdiction in which such enforcement is sought, but that the unenforceability (or the modification to conform with such laws or public policies) of any provisions hereof, shall not render unenforceable or impair the remainder of this Agreement. Accordingly, if any provision of this Agreement shall be determined to be invalid or unenforceable, either in whole or in part, this Agreement shall be deemed amended to delete or modify, as necessary, the offending provisions and to alter the balance of this Agreement in order to render the same valid and enforceable to the fullest extent permissible.

Assignment. This Agreement is personal in nature to the Company and the rights and obligations of the Executive under this Agreement shall not be assigned or transferred by the Executive. This Agreement and all of the provisions hereof shall be binding upon, and inure to the benefit of, the parties hereto and their successors (including successors by merger, consolidation, sale or similar transaction, permitted assigns, executors, administrators, personal representatives, heirs and distributees).

Amendment. This Agreement may not be amended, supplemented or modified in whole or in part except by an instrument in writing signed by the party or parties against whom enforcement of any such amendment, supplement or modification is sought.

Survival. Anything hereof to the contrary notwithstanding, the provisions of Paragraphs 2 through 20 shall survive the expiration or termination of this Agreement, regardless of the reasons therefor.

Choice of Law. This Agreement will be interpreted, construed and enforced in accordance with the laws of the State of Florida, without giving effect to the application of the principles pertaining to conflicts of laws.

Effect of Waiver. The failure of any party at any time or times to require performance of any provision of this Agreement will in no manner affect the right to enforce the same. The waiver by any party of any breach of any provision of this Agreement will not be construed to be a waiver by any such party of any succeeding breach of that provision or a waiver by such party of any breach of any other provision.

Construction. The parties hereto and their respective legal counsel participated in the preparation of this Agreement; therefore, this Agreement shall be construed neither against nor in favor of any of the parties hereto, but rather in accordance with the fair meaning thereof.

Enforcement. Should it become necessary for any party to institute legal action to enforce the terms and conditions of this Agreement, the prevailing party will be awarded reasonable attorneys' fees at all trial and appellate levels, expenses and costs. Any suit, action or proceeding with respect to this Agreement shall be brought in the courts of the State of Florida within the County which the Company maintains its primary offices or in the U.S. District Court of Florida for the district in which the Company maintains its primary offices, whichever is applicable. The parties hereto hereby accept the exclusive jurisdiction of those courts for the purpose of any such suit, action or proceeding.

Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original.

Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered when sent by facsimile with receipt confirmed or when deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested, or by overnight courier, addressed to the parties at the address first stated herein, or to such other address as either party hereto shall from time to time designate to the other party by notice in writing as provided herein.

Entire Agreement. This Agreement contains the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes any prior or contemporaneous understandings and agreements, written or oral, between and among them respecting such subject matter, including, without limitation, the Term Sheet.

Expenses. All reasonable legal fees and expenses incurred by the Executive in negotiating and entering into the Term Sheet and this Agreement will be paid by the Company. All such fees and expenses will be paid by the Company within 30 days after the Company's receipt of the invoices therefor.