Document:

EXHIBIT 10.2

Registration Rights Agreement

Dated as of September 22, 2006 (the “Effective Date”)

          WHEREAS,
BabyUniverse, Inc., a Florida corporation (the “Company”), has
entered into a Subscription Agreement of even date herewith (the
“Subscription Agreement”) with Wyndcrest BabyUniverse Holdings
II, LLC and Wyndcrest BabyUniverse Holdings III, LLC (the
“Purchasers”);

          WHEREAS, the Company
desires to grant to Purchasers, in consideration for, among other things, the
financial accommodations provided for in the Subscription Agreement, the right
to have shares of its common stock purchased pursuant to the Subscription
Agreement (the “Common Stock”) registered pursuant to this
Registration Rights Agreement (the “Agreement”);

NOW, THEREFORE, in consideration of the Purchasers executing and delivering the
Subscription Agreement and purchasing the Common Stock as contemplated therein,
and in consideration of the mutual covenants and agreements contained herein,
the Company and Purchaser agree as follows:

     (I) The Company shall prepare, and, as soon
as possible but in no event later than the date that is 90 days after the date
of this Agreement, file with the SEC a Registration Statement on Form S-3 (or if
Form S-3 is unavailable then on a Form S-1 or other form reasonably acceptable
to Purchaser) for an offering to be made on a continuous basis pursuant to Rule
415 of the Securities Act of 1933, as amended (the “Securities Act”),
covering the resale of all of the Common Stock.  The Company shall use its
best efforts to have the Registration Statement declared effective by the SEC as
soon as possible, but in no event later than six months after the date hereof.
The Company shall pay all costs and expenses related to the registration of the
Common Stock, including without limitation the reasonable fees and expenses of
legal counsel to the Purchasers.  The Company shall use its best efforts to
keep such registration statement continuously effective under the Securities Act
until all of the Common Stock have been sold (the “Registration
Period”).  The Company shall promptly prepare and file with the SEC
such amendments (including post-effective amendments) and supplements to such
Registration Statement and any prospectus used in connection therewith, as may
be necessary to keep such Registration Statement effective at all times until
the expiration of the Registration Period.  If such a Registration
Statement is not (A) filed with the SEC on or before 90 days after the date of
this Agreement (a “Filing Failure”), (B) not declared effective by the
SEC on or before the date that is six months after the date hereof (an
“Effectiveness Failure”), or (C) kept continuously effective
throughout the Registration Period (a “Maintenance Failure”), then as
relief for the damages to the Purchasers or any holder under this Agreement, by
reason of any such failure, the Company shall pay to the Purchasers or any
holder under this Agreement an amount in cash equal to (x) three percent (3.0%)
of the aggregate Purchase Price of the Common Stock (the “Aggregate
Purchase Price”) on each of the following dates: (i) the day of a Filing
Failure; (ii) the day of an Effectiveness Failure; and (iii) the initial day of
a Maintenance Failure, and (y) three percent (3.0%) of the Aggregate Purchase
Price on each of the following dates: (i) on every thirtieth day after the day
of a Filing Failure and thereafter (pro rated for periods totaling less than
thirty days) until such Filing Failure is cured; (ii) on every thirtieth day
after the day of an Effectiveness Failure and thereafter (pro rated for periods
totaling less than thirty days) until such Effectiveness Failure is cured; (iii)
on every thirtieth day after the initial day of a Maintenance Failure and
thereafter (pro rated for periods totaling less than thirty days) until such
Maintenance Failure is cured (each of the above payments, the “Registration
Delay Payments”); provided, however, that in no case shall there be
aggregate Registration Delay Payments in an amount exceeding twenty-one percent
(21%) of the Aggregate Purchase Price, other than with respect to the final
sentence of this sub-paragraph.  Registration Delay Payments shall be paid
on the earlier of (aa) the last day of the calendar month during which such
Registration Delay Payments are incurred and (bb) the third Business Day after
the event or failure giving rise to the Registration Delay Payments is
cured.  In the event the Company fails to make Registration Delay Payments
in a timely manner, such Registration Delay Payments shall bear interest at the
rate of 2.0% per month (prorated for partial months) until paid in
full.

     (II) The Company shall, not less than three
(3) business days prior to the filing of the Registration Statement or any
related prospectus or any amendment or supplement thereto, (i) furnish to the
Purchasers or any holder under this Agreement copies of the Registration
Statement or prospectus proposed to be filed, which documents will be subject to
the review of the Purchasers or any holder under this Agreement, and
(ii) cause its officers and directors, counsel and independent certified
public accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of respective counsel to conduct a reasonable investigation
within the meaning of the Securities Act. Furthermore, the Company shall advise
the Purchasers or any holder under this Agreement, within two (2) business
days: (x) after it shall receive notice or obtain knowledge of the issuance
of any stop order by the SEC delaying or suspending the effectiveness of the
Registration Statement or of the initiation or threat of any proceeding for that
purpose, or any other order issued by any state securities commission or other
regulatory authority suspending the qualification or exemption from
qualification of any of the Common Stock under state securities or “blue
sky” laws; and it will promptly use its best efforts to prevent the
issuance of any stop order or other order or to obtain its withdrawal at the
earliest possible moment if such stop order or other order should be issued; and
(y) when the prospectus or any prospectus supplement or post-effective
amendment has been filed, and, with respect to the Registration Statement or any
post-effective amendment thereto, when the same has become effective.

     (III) (i) The Company agrees to
indemnify and hold harmless each Holder Indemnitee (as defined below) from and
against any losses, claims, damages, liabilities or expenses to which such
Holder Indemnitee may become subject (under the Securities Act or otherwise)
insofar as such losses, claims, damages, liabilities or expenses (or actions or
proceedings in respect thereof) arise out of, or are based upon (A) any
untrue statement of a material fact contained in the Registration Statement or
prospectus, (B) any failure by the Company to fulfill any undertaking
included in the Registration Statement, (C) any breach of any
representation, warranty or covenant made by the Company in this Agreement and
(D) any violation or alleged violation of the Securities Act, the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), any
other law, including, without limitation, any state securities law, or any rule
or regulation thereunder relating to the offer or sale of the Common Stock, and
the Company will promptly reimburse such Holder Indemnitee for any reasonable
legal or other expenses incurred in investigating, defending or preparing to
defend, settling, compromising or paying any such action, proceeding or claim;
provided, however, that the Company shall not be liable in any
such case to the extent that such loss, claim, damage, liability or expense
arises solely out of, or is based solely upon, an untrue statement made in such
Registration Statement in reliance upon and in conformity with written
information furnished to the Company by such Holder Indemnitee specifically for
use in preparation of the Registration Statement.

          (ii) The
Purchasers or any holder under this Agreement agrees (severally and not jointly
with any other holder under this Agreement) to indemnify and hold harmless the
Company (and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act, each officer of the Company who signs the
Registration Statement and each director of the Company) from and against any
losses, claims, damages, liabilities or expenses to which the Company (or any
such officer, director or controlling person) may become subject (under the
Securities Act or otherwise), insofar as such losses, claims, damages,
liabilities or expenses (or actions or proceedings in respect thereof) arise
solely out of, or are based solely upon, any untrue statement of a material fact
contained in the Registration Statement, but only if and to the extent that such
untrue statement was made in reliance upon and in conformity with written
information furnished by the Purchasers or any holder under this Agreement
specifically for use in preparation of the Registration Statement
(provided, however, that the Purchasers or any holder under this
Agreement shall not be liable in any such case for any untrue statement in any
Registration Statement or prospectus if such statement has been corrected in
writing by the Purchasers or any holder under this Agreement and delivered to
the Company at least three business days prior to the pertinent sale or sales by
the Purchasers or any holder under this Agreement). Notwithstanding the
foregoing, the aggregate liability of each of the Purchasers and any holder
under this Agreement pursuant to this subsection (ii) shall be limited to
the net amount received by the Purchasers or any holder under this Agreement
from the sale of the Common Stock. 

          (iii) Promptly
after receipt by any indemnified person of a notice of a claim or the beginning
of any action in respect of which indemnity is to be sought against an
indemnifying person pursuant to this Section III, such indemnified person
shall notify the indemnifying person in writing of such claim or of the
commencement of such action, but the omission to so notify the indemnifying
party will not relieve it from any liability which it may have to any
indemnified party under this Section III (except to the extent that such
omission materially and adversely affects the indemnifying party’s ability
to defend such action) or from any liability otherwise than under this
Section III. Subject to the provisions hereinafter stated, in case any such
action shall be brought against an indemnified person, the indemnifying person
shall be entitled to participate therein, and, to the extent that it shall elect
by written notice delivered to the indemnified party promptly after receiving
the aforesaid notice from such indemnified party, shall be entitled to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified
person. After notice from the indemnifying person to such indemnified person of
its election to assume the defense thereof, such indemnifying person shall not
be liable to such indemnified person for any legal expenses subsequently
incurred by such indemnified person in connection with the defense thereof,
provided however, that if there exists or shall exist a conflict
of interest that would make it inappropriate, in the opinion of counsel to the
indemnifying person, for the same counsel to represent both the indemnified
person and such indemnifying person or any affiliate or associate thereof, the
indemnified person shall be entitled to retain its own counsel at the expense of
such indemnifying person; provided, however, that no indemnifying
person shall be responsible for the fees and expenses of more than one separate
counsel (together with appropriate local counsel) for all indemnified parties.
In no event shall any indemnifying person be liable in respect of any amounts
paid in settlement of any action unless the indemnifying person shall have
approved the terms of such settlement; provided, that such consent shall
not be unreasonably withheld. No indemnifying person shall, without the prior
written consent of the indemnified person, effect any settlement of any pending
or threatened proceeding in respect of which any indemnified person is or could
have been a party and indemnification could have been sought hereunder by such
indemnified person, unless such settlement includes an unconditional release of
such indemnified person from all liability on claims that are the subject matter
of such proceeding.

          (iv) If the
indemnification provided for in this Section III is unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses,
claims, damages, liabilities or expenses (or actions or proceedings in respect
thereof) referred to herein, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or expenses (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the Company on the
one hand and the Purchasers or any holder under this Agreement on the other in
connection with the statements or omissions or other matters which resulted in
such losses, claims, damages, liabilities or expenses (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
fault shall be determined by reference to, among other things, in the case of an
untrue statement, whether the untrue statement relates to information supplied
by the Company on the one hand or the Purchasers or any holder under this
Agreement on the other and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such untrue statement. The
Company and the Purchasers and any holder under this Agreement agree that it
would not be just and equitable if contribution pursuant to this subsection
(iv) were determined by pro rata allocation (even if the Purchasers or any
holder under this Agreement were treated as one entity for such purpose) or by
any other method of allocation which does not take into account the equitable
considerations referred to above in this subsection (iv). The amount paid or
payable by an indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to above in this subsection
(iv) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending
any such action or claim. Notwithstanding the provisions of this subsection
(iv), the Purchasers or any holder under this Agreement shall not be required to
contribute any amount in excess of the net amount received by the Purchasers or
any holder under this Agreement from the sale of the Common Stock. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.  The obligations in this
subsection of the Purchasers or any holder under this Agreement to contribute
are several in proportion to the sales of Common Stock to which such loss
relates and not joint with any other holder under this Agreement. 

          (v) For
purposes of this Section III, the term “Holder Indemnitee” shall
include the Purchasers or any holder under this Agreement, its officers,
directors, employees, partners, members, agents and any person controlling the
Purchasers or any holder under this Agreement; the term “Registration
Statement” shall include any final prospectus, exhibit, supplement or
amendment included in or relating to the Registration Statement; and the term
“untrue statement” shall include (A) any untrue statement or
alleged untrue statement, or any omission or alleged omission to state in the
Registration Statement a material fact required to be stated therein or
necessary to make the statements therein not misleading and (B) any untrue
statement or alleged untrue statement, or any omission or alleged omission to
state in the prospectus a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

          (iv) The
miscellaneous provisions set forth in Sections 9.3, 9.4, 9.6, 9.7, 9.8, 9.10 and
9.11 of the Subscription Agreement shall apply to this Agreement, mutatis
mutandis, as if set forth herein.  Capitalized terms not otherwise
defined herein shall have the meanings respectively ascribed thereto in the
Subscription Agreement.

          IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by its officers
thereunto duly authorized as of the Effective Date.

	
            COMPANY:
  	
  
BabyUniverse,   Inc.
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ John C.   Textor
  	
  
 
  
	
  
 
  	
  
 
  	
  

  	
  
 
  
	
  
 
  	
  
Name:
  	
  
John C.   Textor
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
Chief   Executive Officer
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
          PURCHASERS:
  	
  
Wyndcrest   BabyUniverse Holdings II, LLC
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ John C.   Textor
  	
  
 
  
	
  
 
  	
  
 
  	
  

  	
  
 
  
	
  
 
  	
  
Name:
  	
  
John C.   Textor
  	
  
 
  
	
   
  	
  
Title:
  	
  
President of   Manager
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Wyndcrest   BabyUniverse Holdings III, LLC
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ John C.   Textor
  	
  
 
  
	
  
 
  	
  
 
  	
  

  	
  
 
  
	
   
  	
  Name:
  	
  John C.   Textor
  	
   
  
	
   
  	
  Title:
  	
  President of   ManagerEXHIBIT 10.1

FRANKLIN BANK CORP.
 RESTRICTED STOCK AGREEMENT

          This Restricted Stock Agreement (“Agreement”), entered into on the ____ day of ___________, 2006 (the “Effective Date”), which is the date on which the Grant described below was approved by the Compensation Committee (the “Committee”) of the Board of Directors of Franklin Bank Corp., is between Franklin Bank Corp., a Delaware corporation (the “Company”), and ____________________ (the “Participant”).

          WHEREAS, to carry out the purposes of the Franklin Bank Corp. 2006 Long-Term Incentive Plan (the “Plan”), shares of restricted Common Stock (as defined below) are hereby granted to Participant in accordance with this Restricted Stock Agreement; and

          WHEREAS, the Company and Participant agree as follows:

          1.        Award of Common Stock.  The Company hereby grants (the “Grant”) to Participant ________ shares (the “Shares”) of common stock, $0.01 par value, of the Company (“Common Stock”), which shall be subject to the restrictions on transferability set forth in Section 2(d) herein (the “Restrictions”) and to the other provisions of this Agreement.

          2.        Restricted Period.

                     (a)          For a period of ____________ (___) years and _________ (_____) days commencing on the Effective Date (the “Restricted Period”), the Shares shall be subject to the Restrictions and any other restrictions as set forth herein.  The Restrictions shall expire as to all of the Shares on _________________.  The Shares which are subject to the Restrictions shall hereinafter be referred to as “Restricted Shares.”  The Shares which are no longer subject to the Restrictions as set forth in paragraphs (f) or (g) below shall hereinafter be referred to as “Transferable Shares.”

                     (b)          The Company shall effect the issuance of the Shares out of authorized but unissued shares of Common Stock or out of treasury shares of Common Stock and shall also effect the issuance of a certificate or certificates for the Shares.  Each certificate issued for Restricted Shares to Participant shall be registered in Participant’s name and shall be either deposited with the Secretary of the Company or its designee in an escrow account or held by the Secretary of the Company, at the election of the Company, together with stock powers or other instruments of transfer appropriately endorsed in blank by Participant (Participant hereby agreeing to execute such stock powers or other instruments of transfer as requested by the Company).  Such certificate or certificates
shall remain in such escrow account or with the Secretary of the Company until the earlier to occur of (i) the termination of the Restricted Period or (ii) the expiration of the Restrictions as set forth in paragraphs (f) or (g) below.  Certificates representing the Restricted Shares shall bear a legend in substantially the following form:

	
  
 
  	
  
         THE   TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED   HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE   FRANKLIN BANK CORP. 2006 LONG-TERM INCENTIVE PLAN AND AN AWARD   AGREEMENT.  COPIES OF SUCH PLAN AND   AGREEMENT ARE ON FILE AT THE OFFICES OF FRANKLIN BANK CORP., 9800 RICHMOND   AVENUE, SUITE 680, HOUSTON, TEXAS 77042.
  

The Company may place appropriate stop transfer instructions with respect to the Restricted Shares with the transfer agent for the Common Stock.  Upon Restricted Shares becoming Transferable Shares, the Company shall effect, in exchange for the legended certificates, the issuance and delivery of a certificate or certificates for such Shares to Participant free of the legend set forth above.

                    (c)          Participant shall, during the Restricted Period, have all of the other rights of a stockholder with respect to the Shares including, but not limited to, the right to receive dividends, if any, as may be declared on such Restricted Shares from time to time, and the right to vote (in person or by proxy) such Restricted Shares at any meeting of stockholders of the Company.

                    (d)          The Restricted Shares and the right to vote the Restricted Shares and to receive dividends thereon may not be sold, assigned, transferred, exchanged, pledged, hypothecated, or otherwise encumbered and no such sale, assignment, transfer, exchange, pledge, hypothecation, or encumbrance, whether made or created by voluntary act of Participant or any agent of Participant or by operation of law, shall be recognized by, or be binding upon, or shall in any manner affect the rights of, the Company or any agent or any custodian holding certificates for the Restricted Shares during the Restricted Period, unless the Restrictions have then expired pursuant to the provisions of paragraphs (f) or (g) below.  This provision shall not prohibit Participant from granting revocable proxies in
customary form to vote the Shares.

                    (e)          If Participant ceases to be employed by, or ceases to serve on the Board of, the Company or its Affiliates (as defined in Section 6 herein) prior to the expiration of the Restricted Period for any reason other than the death, Disability, or Normal Retirement of Participant, or upon the occurrence of a Change in Control (which events are governed by Sections 2(f) or 2(g) hereof), then, in that event, any Restricted Shares outstanding shall thereupon be forfeited by Participant to the Company, without payment of any consideration or further consideration by the Company, and neither Participant not any successors, heirs, assigns or legal representatives of Participant shall thereafter have any further rights or interest in the Restricted Shares or certificates therefor, and
Participant’s name shall thereupon be deleted from the list of the Company’s stockholders with respect to the Restricted Shares.  

                    (f)          If Participant ceases to be employed by, or ceases to serve on the Board of, the Company or its Affiliates prior to the expiration of the Restricted Period by reason of death, Disability or Normal Retirement, any Restrictions on the Restricted Shares shall be deemed to have expired as to the Restricted Shares as of the date of any such occurrence, and the Restricted Shares shall thereby be Transferable Shares.  For purposes of this Agreement, “Normal Retirement” shall mean retirement from active employment with the Company at or after the age of 65 or such other age as may be established by the Committee.  

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                    (g)          Upon the occurrence of a Change in Control, any Restrictions on the Restricted Shares set forth in this Agreement shall be deemed to have expired, and the Restricted Shares shall thereby be Transferable Shares.  In addition, to the extent that the accelerated vesting of a Participant’s Restricted Shares upon a Change in Control (“C in C Vesting”) results in an amount subject to federal income tax (“Taxable Amount”) or the Excise Tax (as defined below), Participant shall be paid by the Company an aggregate amount (“Gross-Up Payment” or “Gross-Up Payments”) such that after deducting the Gross-Up Tax (as defined below) and any Excise Tax imposed upon the Gross-Up Payment, Participant shall retain an amount of the Gross-Up Payment equal to
the Taxes (as defined below), less the amount of the CIC Tax used by the Company to satisfy the Company’s federal income tax withholding obligations with respect to the Taxable Amount.  Participant shall be responsible for payment of all taxes imposed on the C in C Vesting and the Gross-Up Payments to the Internal Revenue Service, or any state, local or  other government authority.  A determination of whether the Excise Tax is incurred and the amount of any required Gross-Up Payment (“Determination”) shall be made by a tax accounting firm mutually acceptable to the Company and Participant (“Tax Accountants”).  After a Determination is made by the Tax Accountants, the Tax Accountants shall furnish Participant and the Company with an opinion that either no Excise Tax will be imposed or, if an Excise Tax will be imposed, the amount of the Excise Tax that will be imposed with respect to the C in C Vesting and the Gross-Up Payment (“Opinion”). 
The appropriate Gross-Up Payment remaining after the Company satisfying the federal income tax withholding obligation as set forth above, will be made by the Company to Participant as soon as administratively practicable after the Change in Control and the receipt by the Company of the Opinion.  For purposes of this Section 2(g),

	
  
 
  	
  
 
  	
  
          (1)          the   term “Gross-Up Tax” shall mean an amount equal to the product of (i) the   applicable flat rate for federal income tax withholding under Treasury   Regulation §31.3402(g)–1 and (ii) the Gross-Up Payment. If the Gross-Up   Payment is not subject to federal income tax, then the Gross-Up Tax shall be   zero.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (2)          the   term “CIC Tax” shall mean an amount equal to the product of (i) the   applicable flat rate for federal income tax withholding under Treasury   Regulation §31.3402(g)–1 and (ii) the Taxable Amount.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
          (3)          the   term “Excise Tax” shall only mean the excise tax imposed by Section 4999 of   the Internal Revenue Code of 1986, as amended and any interest and penalties   thereon.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (4)          the   term “Taxes” shall only mean the CIC Tax and the Excise Tax on the C in C   Vesting.
  

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                    (h)        If Participant ceases to be employed by, or ceases to serve on the Board of, the Company prior to the expiration of the Restricted Period, and there exists a dispute between Participant and the Company as to the satisfaction of the conditions to the release of the Shares from the Restrictions hereunder or the terms and conditions of the Grant, the Shares shall remain subject to the Restrictions until the resolution of such dispute, regardless of any intervening expiration of the Restricted Period, except that any dividends that may be payable to the holder of record of Common Stock as of a date during the period from termination of Participant’s employment to the resolution of such dispute shall:

	
  
 
  	
  
          (1)          to   the extent to which such dividends would have been payable to Participant on   the Shares, be held by the Company as part of its general funds, and shall be   paid to or for the account of Participant only upon, and in the event of, a   resolution of such dispute in a manner favorable to Participant, and
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (2)          be   canceled upon, and in the event of, a resolution of such dispute in a manner   unfavorable to Participant.
  

          3.          Taxes.  To the extent that the receipt of the Restricted Shares, Transferable Shares, payment of the Gross-Up Payment or the lapse of any Restrictions results in income to Participant for federal or state income tax purposes, Participant shall deliver to the Company at the time of such receipt or lapse, as the case may be, such amount of money or, if the Participant so elects, shares of unrestricted Common Stock as the Company may require to meet its obligation under applicable tax laws or regulations, and, if Participant fails to do so, the Company is authorized to withhold from any cash or Common Stock remuneration then or thereafter payable to Participant any tax required to be withheld by reasons of such resulting compensation income.  Participant understands and agrees that the Company shall use the CIC Tax portion of the
Gross-Up Payment to satisfy the Company’s federal income tax withholding obligations with respect to the Taxable Amount.  Participant agrees to notify the Company promptly of any tax election made by Participant with respect to the Shares.  The Company confirms to Participant that the right of Participant to deliver unrestricted shares in payment of taxes due in respect of the receipt or vesting of Restricted Shares has been approved by the Compensation Committee prior to the date of this Agreement as contemplated by SEC Rule 16b-3.

          4.          Changes in Capital Structure.  If the outstanding shares of Common Stock shall at any time be changed or exchanged or augmented by declaration of a stock dividend, stock split, combination of shares, merger, consolidation, recapitalization or similar event, the Shares, being outstanding shares of Common Stock, shall be treated in the same manner as all other issued and outstanding shares.  Any cash, property or securities into which the Shares are so changed or exchanged or so augmenting the Shares or so issued in respect of the Shares shall be subject to the Restrictions in the same manner as the Shares.

          5.          Compliance with Securities Laws.

                       (a)          If a registration statement under the Securities Act of 1933, as amended, is not effective with respect to the Shares, Participant (i) represents and warrants to the Company that Participant is acquiring the Shares for his own account, for investment, and without a view to any sale or distribution thereof in violation of any federal or state securities laws, and (ii) understands that the Grant of the Shares to Participant has not been registered under the Securities Act of 1933, as amended, or the securities laws of any state, and, accordingly, that in addition to the other restrictions placed on the Shares by this Agreement, the Shares may not be offered, sold, assigned, transferred, exchanged, pledged, hypothecated or otherwise encumbered in absence of either an
effective registration statement under the Securities Act of 1933, as amended, and applicable state securities laws or an opinion of counsel satisfactory to the Company that such registration is not required.

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                       (b)          If a registration statement under the Securities Act of 1933, as amended, is not effective with respect to the Shares, Participant agrees that the certificates representing the Shares (whether the Shares are Restricted Shares or Transferable Shares) may bear any legend required by law or which the Committee deems appropriate to reflect any restrictions on transfer.

                       (c)          Upon the execution of this Agreement and receipt of any certificates for the Shares pursuant to this Agreement, Participant (or Participant’s legal representative upon Participant’s death or disability) will make and enter into such additional written representations, warranties and agreements as the Company may reasonably request in order to comply with applicable securities laws or with this Agreement or the Plan.

          6.          Employment Relationship.  If Participant is an employee, Participant shall be considered to be in the employment of the Company as long as Participant remains as an employee of the Company or its Affiliates.  Any questions as to whether and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Company, with the advice of the employing corporation (if an Affiliate of the Company), and the Company’s determination shall be final.  For purposes of this Agreement, “Affiliates” shall mean any “parent corporation” of the Company and any “subsidiary corporation” of the Company within the meaning of Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986, as amended.  If Participant is an employee, nothing
contained herein shall be construed as conferring upon Participant the right to continue in the employ of the Company, nor shall anything contained herein be construed or interpreted to limit the “employment at will” relationship between Participant and the Company.

          7.          Binding Effect. The terms and conditions hereof shall be binding upon, and inure to the benefit of, all successors of Participant, including, without limitation, Participant’s estate and the executors, administrators, or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy, or representative of creditors of Participant.  This Agreement shall be binding upon and inure to the benefit of any successors to the Company.

          8.          Notice. All notices, requests, demands and other communications given under or by reason of this Agreement shall be in writing and shall be deemed given when delivered in person or when mailed, by certified mail (return receipt requested), postage prepaid, addressed as follows (or to such other address as a party may specify by notice pursuant to this provision):

-5-

	
  
 
  	
  
(a)
  	
  
To Company:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
Franklin Bank Corp.
  
	
  
 
  	
  
 
  	
  
9800 Richmond Avenue, Suite 680
  
	
  
 
  	
  
 
  	
  
Houston, Texas 77042
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
To Participant:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
_____________________
  
	
  
 
  	
  
 
  	
  
_____________________
  
	
  
 
  	
  
 
  	
  
_____________________
  

          9.          Resolution of Disputes.  As a condition to the granting of the Shares, Participant, his or her legal representatives, heirs, successors and other transferees agree that any dispute or disagreement which may arise hereunder shall be determined by the Committee in its sole discretion and judgment, and that any such determination any interpretation by the Committee of the terms of this Agreement shall be final and shall be binding and conclusive, for all purposes, upon the Company, Participant, his or her legal representatives, heirs, successors and other transferees.   

          10.          Entire Agreement and Amendments. This Agreement contains the entire agreement of the parties relating to the matters contained herein and supersedes all prior agreements and understandings, oral or written, between the parties with respect to the subject matter hereof.  This Agreement may be changed only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.

          11.          Separability.  If any provision of the Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted legislation or by the decision of any arbitrator or by decree of a court of last resort, the parties shall promptly meet and negotiate substitute provisions for those rendered or declared illegal or unenforceable to preserve the original intent of this Agreement to the extent legally possible, but all other provisions of this Agreement shall remain in full force and effect.

          12.          Agreement Subject to Plan.  This Agreement is subject to the Plan.  The terms and provisions of the Plan (including any subsequent amendments thereto) are hereby incorporated herein by reference thereto.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.  All definitions of words and terms contained in the Plan shall be applicable to this Agreement.

          13.          Governing Law.  The execution, validity, interpretation, and performance of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without reference to principles of conflict of laws, except to the extent preempted by federal law.

-6-

          IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by one of its officers thereunto duly authorized, and Participant has executed this Agreement, all as of the day and year first above written.

	
  
 
  	
  
FRANKLIN BANK CORP.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Authorized Officer
  
	
   
  	
   
  	
   
  
	
   
  	
   
  
	
   
  	
  PARTICIPANT
  
	
   
  	
   
  	
   
  
	
   
  	
   
  	
   
  
	
   
  	
   
  	
  

  
	
   
  	
  Name:
  	
   
  

-7-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]