Document:

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                                                                   EXHIBIT 10.26
                                      MICOA
                                AGENCY AGREEMENT

         Mutual Insurance Corporation of America, a Michigan insurance
corporation (MICOA) and Stratton, Cheeseman & Walsh-Nevada, Inc., a Nevada
corporation, ("Agency"), (sometimes commonly referred to as the Parties) agree
as follows:

A.       AUTHORITY OF AGENCY

         Subject to requirements imposed by law, the underwriting rules,
         procedures and regulations of MICOA and this agreement, the Agency is
         authorized to:

         1.       Solicit within the State of Nevada, receive and transmit
                  immediately and directly to MICOA, proposals for health care
                  liability insurance contracts for which a commission is
                  specified in the schedule of commissions provided by Exhibit
                  A, attached and as amended or supplemented by such attachments
                  from time to time.

         2.       Produce and deliver certificates of insurance and written
                  binders in accordance with MICOA underwriting requirements.
                  The Agency is not authorized to accept or bind any risk or to
                  otherwise obligate MICOA without specific authority from
                  MICOA.

         3.       Provide all usual and customary services of an Agency on all
                  policies placed with MICOA subject to the following:

                  a.       MICOA will not be responsible for Agency expenses
                           including but not limited to rent, transportation,
                           employee hire or solicitor's fees, postage,
                           telegrams, telephone, advertising, licensing fees or
                           any other Agency expenses whatsoever.

                  b.       The Agency will not undertake or initiate advertising
                           of any nature in connection with business or policies
                           related to MICOA without the approval of MICOA.

         4.       To promptly report all claims and losses of which the Agency
                  has knowledge and properly notify MICOA when the Agency
                  receives notice of the commencement of any related legal
                  action. Agency shall refrain from admitting or denying
                  liability on the part of the company in connection with any
                  claim or lawsuit.

         5.       In return for the exclusive appointment of Agency by MICOA to
                  sell its professional liability products listed on the
                  attached Commission Schedule

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                  in Nevada, Agency agrees not to sell any competing
                  professional liability products in Nevada, without the written
                  consent of MICOA. Provided that, if a particular risk has been
                  submitted to MICOA and MICOA has declined that risk, then
                  Agency may search appropriate markets for placement of that
                  risk, and may place that risk with another insurance company.

         6.       Designated Agent representatives upon request from MICOA will
                  be expected to participate in MICOA's Nevada Market Managers
                  Group activities and to attend all scheduled meetings.

         7.       MICOA will share on a project basis development costs of all
                  promotional materials and some advertising costs related to
                  Nevada sales, provided that all such expenditures or budgets
                  for them are approved by MICOA in writing in advance.

         8.       Agency may solicit subagencies for appointment, subject to
                  MICOA's prior written approval of each subagency following
                  disclosure to and review by MICOA of information requested by
                  MICOA for each proposed subagency. All such appointments by
                  Agent shall stipulate that MICOA may terminate the subagency
                  at any time without cause upon at least 90 days notice and
                  that the subagency shall comply with all MICOA requirements
                  and duties owed MICOA by Agency concerning solicitation,
                  communications, and service to insureds. Subagencies shall
                  also be required to submit all proposals immediately and
                  directly to MICOA.

B.       MICOA BILLED POLICIES

         For business subject to Exhibit A, placed with and billed by MICOA
         directly to the policyholder, the following shall apply in addition to
         all the other provisions of this agreement:

         1.       The processing and submittal of all such business shall be
                  subject to provisions outlined in MICOA's written requirements
                  and forms as they may be implemented by MICOA from time to
                  time;

         2.       Commissions on premiums shall be paid to the Agency within 30
                  business days of the month in which such premiums are received
                  and recorded by MICOA, subject to deduction by MICOA of any
                  return commissions due from the Agency.

         3.       Except as provided in Section D or unless authorized by the
                  Agency, MICOA or its affiliates shall not use its records of
                  business placed by the Agency with MICOA to solicit individual
                  policyholders for the sale of other lines of

                                      -2-
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                  insurance or other products or services. When the Agency
                  grants such authorization, Agency shall be paid the applicable
                  commission on such sales, provided an appropriate agreement is
                  in place with MICOA.

         4.       If this agreement is terminated, MICOA shall, at the Agency's
                  request, provide the Agency with a list of existing
                  MICOA-billed policies placed by the Agency including their
                  expiration dates.

         5.       The Agency's name shall appear on all policies, premium
                  notices, and cancellation notices to policyholders. Copies of
                  all such items sent to policyholders shall be provided by
                  MICOA to the Agency.

C.       POLICY CANCELLATION

         Cancellation of any policy in force, when requested in writing by the
         insured, will be honored by MICOA, except for those MICOA is not
         otherwise permitted to cancel.

D.       EXPIRATIONS

         1.       In the event this Agreement is terminated for any reason,
                  MICOA agrees to purchase from Agency, and Agency agrees to
                  sell to MICOA Agency's ownership interest in the expirations
                  for the MICOA insurance issued pursuant to this Agreement. The
                  purchase price shall be two times Agency's commissions on
                  business produced directly by Agency during the last 12 full
                  months preceding the termination date. The purchase shall be
                  completed within 60 calendar days after the termination date.
                  In return for this payment, for a two-year period following
                  the termination date, Agency will not directly or indirectly
                  sell any professional liability insurance to any individuals
                  or entities who were MICOA insureds in Nevada at the time of
                  termination of this Agreement.

         2.       If Agency enters into a subagency agreement under which the
                  subagency has the right to retain ownership of expirations on
                  business produced by the subagency, then the purchase of
                  expirations under subparagraph 1 above will not include the
                  purchase of those subagency expirations, and the purchase
                  price paid to Agency will not include the commissions paid for
                  such business produced by the subagency.

                                      -3-
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E.       AGENCY'S ERRORS AND OMISSION, AND FIDELITY & ELECTRONIC CRIME INSURANCE

         The Agency will maintain valid errors and omissions insurance, with
         minimum limits of $1,000,000 per incident, and a fidelity and
         electronic crime policy through an insurer, both of which shall contain
         terms and limits of coverage acceptable to MICOA covering the Agency's
         solicitors and each of its employees. The Agency shall provide MICOA a
         copy of each policy; doing so on a regular and current basis shall be a
         precondition to all of Agency's rights under this Agreement, including
         but not limited to the payment of all earned commissions.

F.       TERMINATION OF AGREEMENT

         1.       This agreement shall terminate:

                  a.       Automatically if any public authority cancels or
                           declines to renew the Agency's license or Certificate
                           of Authority.

                  b.       Immediately if either party gives detailed written
                           notice to the other of alleged gross and willful
                           misconduct, fraud or material misrepresentation.

         2.       This Agreement shall terminate, subject to any automatic
                  renewal or extension for one year as required by law, upon
                  either party giving at least one hundred twenty (120) days
                  advance written notice to the other, if not otherwise contrary
                  to applicable law or this Agreement.

         3.       If the Agency is delinquent in either accounting or payment of
                  monies due MICOA, MICOA may by written notice to the Agency
                  immediately terminate, suspend or modify any of the provisions
                  of this agreement. Such action shall not be taken by MICOA
                  over minor differences between the records of the Agency and
                  MICOA.

         4.       All supplies, including forms and policies furnished by MICOA
                  and any copies or other reproductions of them, shall remain
                  the property of MICOA and shall be returned to MICOA or its
                  representative upon demand.

G.       INDEMNIFICATION

         The respective parties shall indemnify and hold one another harmless as
         follows:

                                      -4-
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         1.       MICOA shall indemnify and hold Agency harmless against any
                  MICOA act or omission, except to the extent the Agency has
                  caused, compounded, or contributed to such error.

         2.       Agency shall indemnify and hold Agency harmless against any
                  act or omission of the Agency, except to the extent MICOA has
                  caused, compounded, or contributed to such error.

         3.       The Agency and MICOA shall properly notify one another upon
                  receiving notice of the commencement of any action related to
                  such liabilities. MICOA shall be entitled to participate in
                  any such action or in consultation with Agency and its carrier
                  to assume the defense of any such action. If MICOA assumes the
                  defense of any such action, it shall not be liable to the
                  Agency for any legal or other expenses subsequently incurred
                  on the Agency's behalf absent MICOA's advance approval of such
                  expenses.

         4.       Neither party shall, except at its own risk and expense,
                  voluntarily assume any liability, make any payment or incur
                  any expense without the prior written consent of the other.

H.       POTENTIAL OPPORTUNITIES

         1.       Other Programs. Agency and MICOA agree that Agency may be
                  offered the opportunity to support MICOA's workers'
                  compensation, and its other nonphysician professional
                  liability or product programs in Nevada when MICOA proceeds
                  with related marketing plans. Such plans may also include
                  Agency's involvement in sales of MICOA commercial and personal
                  products. Appropriate agreements must be negotiated separately
                  from this agreement for each such product, and for each such
                  territory, including but not limited to Nevada.

         2.       Territory. Agency and MICOA further agree to consider, subject
                  to successful negotiation of appropriate agreements separate
                  from this agreement, expansion of Agencies' sales territories
                  for MICOA beyond Nevada.

I.       MISCELLANEOUS

         1.       Amendment. This agreement may be amended only in writing by
                  mutual agreement of the Agency and MICOA, except that MICOA's
                  name herein shall be deemed changed automatically for purposes
                  of this agreement without written amendment upon approval of
                  any such change by MICOA's domiciliary regulator.

         2.       Non Waiver. Any failure by MICOA to insist upon compliance
                  with any provisions of this Agreement or of the rules and
                  regulations of MICOA shall not be construed as or constitute a
                  waiver of them by MICOA.

                                      -5-
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         3.       Integrated Agreement. This Agreement and its attachments as
                  modified from time to time supersedes and replaces as of its
                  effective date, all previous agreements, if any, between MICOA
                  and the Agency. There are other agreements between MICOA and
                  the Agency's parent corporation, SC&W, which are not
                  superceded.

         4.       Independent Contractor. The Agency is an independent insurance
                  Agency and independent contractor, and not an employee,
                  manager, officer or owner of MICOA.

         5.       Applicable Law. This Agreement shall be interpreted under the
                  laws of the State of Nevada. Any provisions of this Agreement
                  or any amendments to the Agreement that are or become in
                  conflict with any applicable statutes or regulations shall be
                  deemed to be amended to conform to those statutes or
                  regulations.

         6.       Counterparts. This Agreement and any Exhibits which require
                  signatures may be executed in counterparts which shall
                  together be regarded as binding upon the Parties.

         7.       Authority. The persons signing below represent and warrant
                  that they are duly authorized representatives of the
                  respective Parties, fully willing and able to execute this
                  Agreement.

         8.       Assignment. MICOA may assign this Agreement to its parent,
                  affiliate, or subsidiary corporations who are licensed
                  insurers upon written notice to Agency. Agency may not assign
                  this Agreement without the written permission of MICOA or its
                  successors or assigns.

         9.       Resolution of Disputes. In the event of any dispute arising
                  out of this Agreement, MICOA and Agency agree to submit such
                  dispute to arbitration as follows:

                  a.       There shall be three arbitrators; one shall be
                           selected by the Agency, one shall be selected by
                           MICOA, and a third shall be selected by those two
                           arbitrators. If the two arbitrators cannot agree on
                           the selection of a third, American Arbitration
                           Association's regional office closest to Agency's
                           main office shall be requested to appoint the third
                           arbitrator.

                  b.       The determination of the arbitrators shall be final
                           and binding upon the Agency and MICOA.

                  c.       Neither MICOA nor the Agency shall be entitled to
                           punitive and/or exemplary damages.

                                      -6-
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                  d.       The arbitration shall be conducted in accordance with
                           the procedures of the above referenced regional
                           office of the American Arbitration Association. The
                           Agency and MICOA shall pay the cost of their
                           arbitrator and share equally in the expense of the
                           third arbitrator.

                  e.       Either Party, may where permitted by the law of
                           Nevada, enter judgment upon the arbitrators' award.

         10.      Year 2000 Compliance. Agency must at times assure that any of
                  its computers, data processing systems, software components,
                  and network arrangements use for MICOA business completely and
                  accurately, present, produce, store and calculate all dates
                  after December 31, 1999; and that they will not produce
                  abnormally ending or incorrect results involving such dates as
                  used in any forward or regression data based functions. All
                  such items must yield date-related functionalities and date
                  fields which accurately indicate the century and millennium
                  and correctly perform all calculations involving a four digit
                  year field.

Signed and effective this 25th day of May, 1999.

                                         AGENCY

                                         By:  /s/ Terrence L. Walsh
                                            ------------------------------------

                                         Its:   President

                                         MICOA

                                         By:  /s/ Thomas C. Payne, M.D.
                                            ------------------------------------
                                            Thomas C. Payne, M.D.
                                            Secretary/Treasurer

                                      -7-
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                                    EXHIBIT A

                                AGENCY AGREEMENT
                   SCHEDULE OF COMMISSIONS AND WRITTEN PREMIUM

New Business Policies:             12% of the annual premium
Renewal Policies:                  12% of the annual premium

Appointed agents who are not a party to a current MICOA agency contract and/or
are not affiliated with an agency which has an agency contract will receive a 1%
commission rate for all lines of business stated above.

Commission will decrease by .5% effective 10/1/99 as part of a repayment program
under a project memorandum dated 4/7/99. This decrease will stay in effect until
SC&W reaches $10MM in premium or at a maximum of 10 years.

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April 7, 1999

Mr. Terrence Walsh
Stratton, Cheeseman & Walsh, Inc.
1301 N. Hagadorn
East Lansing, MI 48823

RE:      NEVADA DEPARTMENT
         PROJECT MEMORANDUM

Dear Terry:

In response to MICOA's request to develop a complete insurance distribution
system for Nevada, including physicians professional liability and personal and
commercial insurance by July 1999, Stratton, Cheeseman & Walsh, Inc. (SC&W) has
spent and will continue to spend a substantial amount of time and money. In
recognition that these expenditures will directly benefit MICOA, SC&W and MICOA
agree to the following:

-    During the first two years of developing the Nevada distribution system, a
     portion of the start up costs will be shared. Subject to compliance with a
     detailed budget developed by SC&W and MICOA, these reimbursable costs shall
     include:

     -    Salaries and benefits for SCW-Nevada, Inc. employees and agents.

     -    20% of your total personal benefits and salary, and 100% of your
          personal travel expenses incurred with respect to the Nevada office,
          which respective percentages are intended to recognize your personal
          support of MICOA's Nevada initiative.

     -    Legal expenses directly attributable to the Nevada initiative.

     -    Nevada office set up.

     -    Consultant's expenses paid by SC&W in direct support of the
          initiative.

     -    The above costs are to be designated and itemized in the preapproved
          budget and reimbursed by MICOA at 100% for the first full year of
          development and 50% for the second year. It is agreed that the first
          year began effective October 1, 1997.

-    All other costs attributable to the normal operation of the Nevada
     insurance agency site are the sole responsibility of SC&W.

-    After the first two years (i.e. after October 1, 1999) all expenses will
     be borne by SC&W and those amounts paid to SC&W during the first two years
     shall be repaid. Repayment shall be through reduction of commissions due
     SC&W by 0.5% or if

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     SC&W exceeds $10.0 million in premium revenues by offset in the event any
     money is owed the Agency by MICOA. Such reduction or offset shall occur for
     so long as necessary to repay amounts reimbursed by MICOA during the
     two-year period of development; but in no event will repayment be collected
     for a period of greater than ten years. Any unpaid amounts at the end of
     ten years shall be forgiven by MICOA.

-    Nevada rent expenses will be shared on a 50/50 basis between MICOA and
     SC&W.

-    In order to allow SC&W to expand the distribution system in Nevada with
     select and controlled subagents, an exclusive agency agreement will be
     negotiated which will spell out the terms and conditions of the
     relationship. A commission rate of 12% will be paid for both new and
     renewal physicians liability business. Other commission rates will be
     determined as products become available. This Agency Agreement should be
     finalized by April 30, 1999.

-    MICOA may pay future payments advanced pursuant to this letter on a monthly
     basis, unless doing so would be impractical, in which case another periodic
     form of payment will be arranged. Amounts owed for past time periods will
     be paid as follows: one-third by March 25, 1999; one-third by May 1, 1999;
     and one-third by June 1, 1999. All other amounts owed under this Project
     Memorandum to be paid by October 1, 1999.

SC&W's responsibilities, under this Project Memorandum, will include assisting
MICOA with market assessment, distribution, and sales integration into Nevada.
SC&W agrees not to serve in a strategic marketing capacity for another insurer
in Nevada while it is providing such services for MICOA or for a period of one
year thereafter.

Terry, please countersign and return this letter to indicate your acceptance.

Sincerely,

MUTUAL INSURANCE CORPORATION OF AMERICA

/s/ Thomas C. Payne, M.D.
-----------------------------------------
Thomas C. Payne, M.D.
Secretary/Treasurer

ACCEPTED AND AGREED TO:
STRATTON, CHEESEMAN & WALSH, INC.

/s/ Terrence L. Walsh
-----------------------------------------
Terrence L. Walsh
CEO<PAGE>
                                                                   EXHIBIT 10.18

                              EMPLOYMENT AGREEMENT

      This Employment Agreement ("Agreement") is entered into as of March 20,
2003 ("Effective Date") between Franklin Bank, N.A. ("Bank") and George Hall
("Hall").

                                    RECITALS

      Bank wishes to employ Hall as its President and Chief Executive Officer
and Hall wishes to accept such employment under the terms and conditions set
forth in this Agreement.

      IT IS AGREED as follows:

      1. EMPLOYMENT. Bank hereby employs Hall as its President and Chief
Executive Officer. Hall accepts such employment. Hall will be appointed to the
Board of Directors of Bank on the Effective Date. Hall shall also be elected
President and Chief Executive Officer, and appointed to the Board of Directors,
of Franklin Bancorp as such time as David Shelp shall retire, resign or be
replaced by the board of directors of Franklin Bancorp.

      2. TERM. The term of employment under this Agreement shall commence on the
Effective Date and shall continue, unless otherwise terminated earlier under
Section 11, until the third anniversary of the Effective Date (the "Term"),
provided that on each yearly anniversary commencing with the third anniversary
of the Effective Date, the Term shall be automatically extended for successive
additional one (1) year periods unless at least one hundred and twenty (120)
days prior to such anniversary date, either Bank or Hall furnishes the other
with written notice that the Term not be so extended.

      3. DUTIES. Hall shall devote his full-time efforts to the proper and
faithful performance of all duties customarily discharged by a President and
Chief Executive Officer for a financial institution, including without
limitation (a) supervision of day-to-day operations, (b) overseeing, recruiting,
assembling and/or training Bank's management team, (c) formulation and
implementation of operational policies, (d) management of all personnel
functions consistent with Bank's overall policies, (e) initiation and
supervision of inside and outside marketing activities and (f) any additional
duties assigned to him from time to time by the Board of Directors of Bank. Hall
agrees to use his best efforts and comply with all fiduciary and professional
standards in the performance of his duties hereunder. Hall shall serve as a
director and officer, to the extent appointed or elected, of Franklin Bancorp
(as set forth in Section 1), and of any subsidiary or affiliate of Bank or
Franklin Bancorp without additional compensation and benefits beyond those set
forth in this Agreement. Hall represents that his employment under this
Agreement will not conflict with or result in the breach of any agreement to
which Hall is bound.

      4. BASE SALARY. Hall shall be paid a base salary of Two Hundred Sixty
Thousand Dollars ($260,000.00) per annum for the first year of the Term payable,
less applicable withholding,

                                       23
<PAGE>
in equal monthly payments or more frequently in accordance with Bank's regular
practice. Salary for a portion of any period will be prorated. Following the
first year of the Term, Hall's base salary will be set following review each
year during the Term by the Compensation Committee of Bank.

      5. ANNUAL CASH BONUS. On or before March 31st following each calendar year
(except for calendar year 2002), Hall will be eligible to receive an annual
performance bonus based upon Bank's achieving (i) targeted financial results for
the prior year, taking into consideration the earnings set forth in the annual
budget approved by Bank's Board of Directors each year and/or (ii) such other
goals and objectives as mutually determined each year during the Term by Bank
and Hall. The amount of the annual cash bonus earned and payable for any year
shall be up to one hundred percent (100%) of Hall's base salary for such year.
Hall will be eligible for a prorated bonus for calendar year 2003 based on
mutually agreed upon financial and operational goals that shall be determined
within one hundred twenty (120) days after the Effective Date, as well as other
specific and agreed upon accomplishments, which may include without limitation
the following: (a) effective recruitment and training of a senior management
team acceptable to Bank's Board of Directors and federal regulatory agencies;
(b) due diligence on Bank's loans and other assets; (c) implementation of
effective action plans for all NPA's acceptable to Bank's Board of Directors as
well as an effective management plan for reducing past due loans; (d)
reorganization as necessary and complete review of policies and procedures to
ensure effective management of the loan portfolio (loan origination,
administration and servicing); and (e) action plans for the attainment of
profitability of Bank's Troy branch. If Hall's employment ends upon expiration
of the Term, he shall not be eligible for a bonus covering the approximate three
(3) months of the then current calendar year.

      6. LONG TERM INCENTIVE COMPENSATION. Bank anticipates the development of a
long-term incentive compensation plan which shall provide Hall with the
opportunity to earn awards under an equity and/or cash based system upon
achievement of long-term objectives. It is expected that such plan shall be
developed and implemented no later than the 2004 annual meeting of shareholders.

      7. STOCK OPTIONS.

      (a)   On the Effective Date, Franklin Bancorp will grant to Hall an option
            to purchase 15,000 shares of Franklin Bancorp common stock pursuant
            to the existing terms and conditions of the Key Executive Stock
            Option Plan, as amended from time to time (the "Plan"); provided,
            however, exercisability of such options shall terminate in
            accordance with the plan but in no event later than ninety (90) days
            after any termination of employment. The options shall vest as set
            forth in the Plan, as modified by Section 10, below.

      (b)   During the Term of his employment, Hall shall be entitled to fully
            participate in any future stock option plans, stock purchase plans,
            restricted stock plans or other similar plans which may be adopted
            by Bank or Franklin Bancorp in the future. The level of such
            participation shall be determined by the Compensation Committee of
            Bank.

                                       24

<PAGE>
      8. RELOCATION COSTS. Bank shall pay directly or reimburse Hall for all
reasonable out-of-pocket costs of moving his family to the Detroit area
including, without limitation, agreed upon temporary housing costs for Hall,
travel costs, packing and moving of all personal property from Albuquerque to
the Detroit area and up to two visits to the Detroit area by Hall and/or his
wife. Bank and Hall acknowledge that Hall may relocate in one or more phases and
shall obtain housing in the primary market area served by Bank in Oakland
County, Michigan. Hall agrees to obtain bids for moving costs subject to
approval by Bank. In addition to the foregoing and in recognition of the
additional time and non-monetary and indirect costs of moving from out-of-state
to the Oakland County area, Bank will pay Hall Twenty-Five Thousand Dollars
($25,000.00) payable on or about the Effective Date.

      9. BENEFITS.

      (a)   During the Term, Hall may participate in all Bank sponsored
            retirement plans, 401(k) plans, life insurance plans, medical
            insurance plans, disability insurance plans, employee stock
            ownership plans and such other benefit plans generally available
            from time to time to other executive employees of Bank or Franklin
            Bancorp for which he qualifies under the terms of the plans. Hall's
            participation in and benefits under any benefit plan shall be on the
            terms and subject to the conditions specified in such plan.

      (b)   Hall will receive four (4) weeks of paid vacation in each calendar
            year, prorated for periods less than one (1) year.

      (c)   Bank will pay or reimburse Hall for up to Three Thousand Five
            Hundred Dollars ($3,500.00) per year for membership in a mutually
            agreeable "city" club or, if Hall elects to become a member of a
            mutually agreeable country club, then Bank will pay for usual and
            customary annual dues and assessments of such country club.

      10. REIMBURSEMENT OF EXPENSES. Bank will reimburse Hall for the reasonable
and necessary expenses incurred by him in the performance of his duties under
this Agreement in accordance with Bank's policies in effect from time to time.

      11. PAYMENT UPON CHANGE IN CONTROL. If the event of a Qualifying Event
pursuant to a Change of Control (as those terms are defined below), Bank will
pay to Hall an amount equal to two and one-half (2.5) times the average of
Hall's previous three (3) years (or fewer years, if employment is less than
three (3) full years) of Cash Compensation; provided, however, that Bank shall
not be obligated to pay any portion of this amount if it would constitute an
"excess parachute payment" as defined in Section 280G of the Internal Revenue
Code or such successor provisions. In the event of a Qualifying Event pursuant
to a Change of Control, Hall will thereupon be considered one hundred percent
(100%) vested with respect to any unexercised options, warrants and restricted
stock grants.

      For purposes of this Section 10, "Cash Compensation" means the total of
Hall's base salary (Section 4) and annual cash bonus (Section 5), only.

                                       25

<PAGE>
      For purposes of this Section 10, "Change in Control" means the occurrence
of any of the following:

      (a)   any "person" or "group" (as such terms are used in Sections 13(d)
            and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
            "Exchange Act"), other than a trustee or other fiduciary under an
            employee benefit plan established or maintained by Bank or Franklin
            Bancorp, is or becomes the beneficial owner (within the meaning of
            Rule 13d-3 under the Exchange Act), directly or indirectly, of
            securities of Franklin Bancorp representing more than thirty percent
            (30%) of the combined voting power of Franklin Bancorp's then
            outstanding securities; provided, however, that such acquisition of
            more than thirty percent (30%) of the combined voting power of
            Franklin Bancorp's outstanding securities will not constitute a
            Change in Control if the excess is acquired in violation of law and
            the acquirer by court order, settlement or otherwise disposes or is
            required to dispose of all securities acquired in violation of law;
            or

      (b)   upon the first purchase of Franklin Bancorp's Common stock pursuant
            to a tender or exchange offer which results in the sale of more than
            thirty percent (30%) of the combined voting power of Franklin
            Bancorp's then outstanding securities (other than a tender or
            exchange offer initiated by Franklin Bancorp or a trustee or other
            fiduciary under an employee benefit plan established or maintained
            by Bank or Franklin Bancorp); or

      (c)   upon consummation and closing of a transaction resulting in (i) a
            merger or consolidation of Franklin Bancorp with or into another
            institution, other than a merger or consolidation which would result
            in the voting securities of Franklin Bancorp outstanding immediately
            prior thereto continuing to represent (either by remaining or by
            being converted into voting securities of the surviving entity) more
            than fifty percent (50%) of the combined voting power of the voting
            securities of Franklin Bancorp or such surviving entity outstanding
            immediately after such merger or consolidation); or (ii) a sale,
            exchange, lease, mortgage, pledge, transfer, or other disposition
            (in one transaction or a series of related transactions) of all or
            substantially all of the assets of Franklin Bancorp which shall
            include, without limitation, the sale of assets or earning power
            aggregating more than fifty percent (50%) of the assets or earning
            power of Franklin Bancorp on a consolidated basis; or (iii) any
            liquidation or dissolution of Franklin Bancorp; or (iv) any
            reorganization, reverse stock split, or recapitalization of Franklin
            Bancorp which would result in a Change in Control.

      For purposes of this Section 10, "Qualifying Event" means one of the
following events which occurs during the period commencing one hundred eighty
(180) days prior to the date of a Change in Control and ending on the first
anniversary of a Change in Control:

      (a)   the termination of Hall's employment by Bank without Cause (as
            defined in Section 11(e));

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<PAGE>
      (b)   resignation from employment by Hall as the result of his removal
            from the position of President and Chief Executive Officer of Bank
            or the material and substantial reduction of his duties in such
            positions; or

      (c)   the reduction of Hall's then current base salary or elimination of
            any existing benefits as described in Section 8.

TERMINATION OF EMPLOYMENT.

      (a)   Hall's employment under this Agreement may be terminated at any time
            by the Board of Directors of Bank (and by the Board of Directors of
            Franklin Bancorp and of any subsidiary or affiliated organization
            for employment with those entities), with or without Cause (as
            defined below). Hall's employment is "at-will."

      (b)   Hall's employment under this Agreement shall terminate upon
            expiration of the Term without extension as described in Section 2.

      (c)   Hall's employment under this Agreement shall terminate upon his
            retirement, resignation or death.

      (d)   Hall's employment under this Agreement shall terminate upon thirty
            (30) days written notice by Bank to Hall of a termination due to
            Disability, provided such notice is delivered during the period of
            Disability. The term "Disability" shall mean, for purposes of this
            Agreement, the inability of Hall, due to injury, illness, disease or
            bodily or mental infirmity to engage in the performance of his
            material duties of employment with Bank as contemplated by Section 3
            herein for (i) any period of ninety (90) consecutive days or (ii) a
            period of one hundred fifty days (150) in any consecutive twelve
            (12) months, provided that interim returns to work of less than ten
            (10) consecutive business days in duration shall not be deemed to
            interfere with a determination of consecutive absent days if the
            reason for absence before and after the interim return are the same.
            Benefits to which Hall is entitled under any disability policy or
            plan provided by Bank shall reduce the base salary paid to Hall
            during any period of Disability on a dollar-for-dollar basis.

      (e)   Bank shall have the right to terminate Hall's employment for Cause.
            For purposes of this Agreement, "Cause" shall consist of any of the
            following:

            (i)   Hall's willful misrepresentation, fraud, willful dishonesty or
                  willful breach of a fiduciary duty which is intended to
                  result, or does result, in his or any person's or entity's
                  enrichment at the expense of Bank;

            (ii)  willful misconduct;

            (iii) willful or reckless conduct of Hall which has an adverse
                  impact (economic or otherwise) on Bank;

                                       27
<PAGE>
           (iv)   failure to perform Hall's duties or failure to follow any
                  written policy or directive of the Board of Directors of Bank
                  or Franklin Bancorp, any of which is not remedied by Hall
                  after receipt by him of a written notice from the Board of
                  Directors of Bank or Franklin Bancorp specifying the required
                  action and the time period within which the action must be
                  taken, which period shall not be less than three (3) days;

           (v)    willful violation of any law, rule or regulation relating to
                  the operation of Bank or any of its subsidiaries or
                  affiliates;

           (vi)   the order of any court or supervising governmental agency with
                  jurisdiction over the affairs of Bank or any subsidiary or
                  affiliate;

           (vii)  Hall's willful violation of any provision of this Agreement,
                  including without limitation violation of Sections 12, 13, 14
                  or 15;

           (viii) Hall's conviction or no contest plea to a felony or crime
                  involving moral turpitude;

           (ix)   abuse of illegal drugs or other controlled substances or
                  habitual intoxication; or

           (x)    willful violation by Hall of Bank's published business conduct
                  guidelines, code of ethics, conflict of interest or other
                  similar policies.

      (f)  If Hall's employment terminates for any reason other than (i)
           termination by Bank without Cause under Section 11(a) or (ii) the
           occurrence of a Qualifying Event as the result of a Change in
           Control under Section 10, Bank shall be obligated only to continue
           to pay Hall's salary and incentive compensation and furnish the
           benefits referenced in this Agreement up to the date of termination
           (except as otherwise set forth in this Agreement).

      (g)  If Hall's employment is terminated by Bank as set forth in Section
           11(a) without Cause, Hall shall be entitled to receive his base
           salary (but not incentive compensation beyond the date of
           termination) and benefits for the remainder of the Term. Hall's
           salary shall continue to be payable without offset for earnings from
           subsequent employment during the remainder of the Term but all
           benefits provided by Bank shall cease upon subsequent employment of
           Hall.

      13. CONFIDENTIALITY. During Hall's employment with Bank and at all times
after the termination of such employment, regardless of the reason for such
termination, Hall shall hold all Confidential Information relating to Bank in
strict confidence and in trust for Bank and shall not disclose or otherwise
communicate, provide or reveal in any manner whatsoever any of the Confidential
Information to anyone other than Bank without the prior written consent of Bank.
"Confidential Information" includes, without limitation, financial information,
related trade secrets (including, without limitation, Bank's business plan,
methods and/or practices) and other proprietary business information of Bank
which may include, without limitation, market studies, customer and

                                       28

<PAGE>
client lists, referral lists and other items relative to the business of Bank.
"Confidential Information" shall not include information which is or becomes in
the public domain through no action by Hall or information which is generally
disclosed by Bank to third parties without restrictions on such third parties.

      14. SOLICITATION OF CUSTOMERS. During his employment with Bank and for a
period after the termination of his employment, regardless of the reason for the
termination, equal to the greater of (a) one (1) year or (b) the period for
which Hall receives payment of his base salary under Section 11(f) for
termination by Bank without Cause (the "Non-Competition Period"), Hall shall
not, whether directly or indirectly, for his own benefit or for the benefit of
any other person or entity, or as a partner, stockholder, member, manager,
officer, director, proprietor, employee, consultant, representative, agent of
any entity other than Bank, solicit, directly or indirectly, any customer of
Bank, or induce any customer of Bank to terminate any association with Bank, or
otherwise attempt to provide services to any customer of Bank. Hall shall
prevent such solicitation to the extent he has authority to prevent same and
otherwise shall not interfere with the relationship between Bank and its
customers.

      15. SOLICITATION OF EMPLOYEES AND OTHERS. During his employment with Bank
and during the Non-Competition Period, Hall shall not, whether directly or
indirectly, for his own benefit or for the benefit of any other person or
entity, or as a partner, stockholder, member, manager, officer, director,
proprietor, employee, consultant, representative, agent of any entity other than
Bank, solicit, for purposes of employment or association, any employee or agent
of Bank ("Solicited Person"), or induce any Solicited Person to terminate such
employment or association for purposes of becoming employed or associated
elsewhere, or hire or otherwise engage any Solicited Person as an employee or
agent of an entity with whom Hall may be affiliated or permit such, or otherwise
interfere with the relationship between Bank and its employees and agents. For
purposes of this Agreement, an employee or agent of Bank shall mean an
individual employed or retained by Bank during the Term and/or who terminates
such association with Bank within a period of six (6) months either prior to or
after the termination of Hall's employment with Bank.

      16. NON-COMPETITION. During his employment with Bank and during the
Non-Competition Period, Hall shall not, directly or indirectly, as an officer,
director, shareholder, member, partner, joint venturer, employee, independent
contractor, consultant, or in any other capacity:

      (a)   Engage, own or have any interest in;

      (b)   Manage, operate, join, participate in, accept employment with,
            render advice to, or become interested in or be connected with;

      (c)   Furnish consultation or advice to; or

      (d)   Permit his name to be used in connection with;

                                       29
<PAGE>

any person or entity engaged in the business of providing trust or banking
services within all geographic locations which are served now and in the future
by Bank offices (generally, without limitation, southeastern Michigan).

      17. REMEDIES. In the event of a material breach or threatened material
breach of Section 12, Section 13, Section 14 or Section 15, Bank, in addition to
its other remedies at law or in equity, shall be entitled to injunctive or other
equitable relief in order to enforce or prevent any violations of the
aforementioned Sections. In the event of any such material breach, Bank may
immediately cease payment of Hall's base salary and the providing to Hall of
benefits under Section 11(f), if applicable, for a termination by Bank without
Cause.

      18. SEVERABILITY AND SAVINGS. Each provision in this Agreement is
separate. If necessary to effectuate the purpose of a particular provision, the
Agreement shall survive the termination of Hall's employment with Bank. If any
provision of this Agreement, in whole or in part, is held to be invalid or
unenforceable, the parties agree that any such provision shall be deemed
modified to make such provision enforceable to the maximum extent permitted by
applicable law. As to any provision held to be invalid or unenforceable, the
remaining provisions of this Agreement shall remain in effect.

      19. BINDING EFFECT. This Agreement shall be binding upon and shall inure
to the benefit of Bank and its successors and assigns. This Agreement shall be
binding upon and inure to the benefit of Hall, his heirs and personal
representatives. This Agreement is not assignable by Hall.

      20. MISCELLANEOUS.

      (a)   No provision of this Agreement may be modified, waived or discharged
            unless such waiver, modification or discharge is agreed to in
            writing and signed by Bank and Hall. The waiver or nonenforcement by
            Bank of a breach by Hall of any provision of this Agreement shall
            not be construed as a waiver of any subsequent breach by Hall. This
            is the parties' entire Agreement relating to the subject matter
            hereof and any and all prior agreements, representations or
            promises, oral or otherwise, express or implied, are superseded by
            and/or merged into this Agreement.

      (b)   Any notice under this Agreement must be in writing and delivered
            personally or by overnight courier, sent by facsimile transmission
            or mailed by registered or certified mail to the parties at their
            respective addresses.

      (c)   This Agreement shall be governed by the laws of the State of
            Michigan.

      (d)   Although this Agreement was drafted by Bank, the parties agree that
            it accurately reflects the intent and understanding of each party
            and should not be construed against Bank for the sole reason that it
            was the drafter if there is any dispute over the meaning or intent
            of any provisions.

                                       30
<PAGE>
      (e)   This Agreement may be executed in counterparts, which together shall
            constitute one Agreement.

      (f)   By their signatures below, the parties acknowledge that they have
            had sufficient opportunity to read and consider, and that they have
            carefully read and considered, each provision of this Agreement and
            that they are voluntarily signing this Agreement.

                            [Signature Page Follows]

                                       31
<PAGE>
The parties have executed this Agreement as of the Effective Date.

WITNESS:

                                              /s/ George Hall
-----------------------------------     --------------------------------------
                                        George Hall

                                        FRANKLIN BANK, N.A.
-----------------------------------

                                        By    /s/ David F. Simon
                                          ------------------------------------

                                       Its      Chairman of the Board
                                          ------------------------------------

                                       32

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