Document:

Exhibit 10.2

Execution Copy

                       Supplemental Stock Option Agreement

Pursuant to the Nexity Financial Corporation Incentive Stock Compensation Plan

      This SUPPLEMENTAL  STOCK OPTION AGREEMENT (this "Agreement") is made as of
the ______ day of  ________________,  1999, by Nexity Financial  Corporation,  a
Delaware corporation, and ____________________ ("Holder").

                                   WITNESSETH:

      The Company has determined that it is in the best interests of the Company
and  its  shareholders  to  encourage  ownership  in the  Company  by  qualified
employees,  officers,  and members of the Board of  Directors  of the Company or
other individuals as may be determined,  thereby providing  additional incentive
for them to continue  in the employ of or to provide  services to the Company or
its affiliates. To that end, a Supplemental Stock Option is granted by the Board
of Directors to Holder pursuant,  and subject to, the Company's  Incentive Stock
Compensation Plan (the "Plan") on the following terms and conditions:

                                    SECTION I
                                  DEFINED TERMS

      Unless  otherwise  defined  herein  or,  unless  the  context  requires  a
different  definition,  capitalized  terms used herein  shall have the  meanings
assigned to them in the Plan.

                                   SECTION II
                   OPTIONS, OPTION PRICE AND TIME OF EXERCISE

      Effective as of the date hereof, the Company grants to Holder,  subject to
the terms and  provisions set forth  hereinafter  and in the Plan, the right and
option to purchase  all or any part of the number of shares set forth in Exhibit
A of the presently authorized but unissued common stock ("Common Stock"), of the
Company at the purchase price per share set forth as the option price in Exhibit
A.

      The Option  shall not be  considered  granted  (as of the  effective  date
described above) or become  exercisable  unless and until Holder delivers to the
Company a fully executed  counterpart  hereof.  Thereafter,  the Option shall be
granted  as of such  effective  date  and the  Option  shall be  exercisable  in
accordance  with the  exercise  schedule  set forth on Exhibit A, subject to any
termination,  acceleration or change in such exercise schedule set forth in this
Agreement apart from Exhibit A.

      Neither the Option nor any other rights  granted under this  Agreement may
be exercised  after the Expiration  Date set forth on Exhibit A and, before that
time, the Option may be terminated as hereinafter  provided.  If Holder does not
purchase  the full number of shares to which he is entitled in any one year,  he
may purchase  such shares in the next year  specified  in the exercise  schedule
hereto, in addition to the shares which he is otherwise  entitled to purchase in
the next year.

                                   SECTION III
                         EXERCISE PROCEDURE; WITHHOLDING

      Holder shall exercise the Option by notifying the Company of the number of
shares that he desires to purchase and by  delivering  with such notice the full
payment for the purchase price of the shares being purchased.

<PAGE>

Such  purchase  price  shall  be  payable  in  cash,  in  Common  Stock  or in a
combination of cash and Common Stock. For purposes of determining the amount, if
any, of the purchase  price  satisfied by payment in Common  Stock,  such Common
Stock  shall be  valued at its Fair  Market  Value on the date of  exercise,  as
determined  by the Board of Directors at the time of exercise.  Any Common Stock
delivered in  satisfaction  of all or a portion of the  purchase  price shall be
appropriately endorsed for transfer and assignment to the Company.

      The Company will, as soon as is reasonably possible,  notify the Holder of
the amount of withholding  tax, if any, that must be paid under  federal,  state
and  local  law  due to  exercise  of the  Option.  The  Company  shall  have no
obligation to deliver certificates for the shares purchased until Holder pays to
the Company the amount of withholding  specified in the Company's notice in cash
or in Common  Stock.  Alternatively,  Holder may direct the  Company to withhold
that number of shares of Common Stock (valued  according to the  procedures  set
forth in this  section on the date of  withholding)  sufficient  to satisfy such
obligation subject to the minimum statutory rate.

                                   SECTION IV
                        TERMINATION OF EMPLOYMENT/SERVICE

      If Holder's employment (or other service not including service as a member
of the Company's Board of Directors) with the Company  terminates for Cause, the
Option,  to the extent not previously  exercised,  will terminate on the date of
such  termination of employment (or service).  If Holder's  employment (or other
service  including service as a member of the Company's Board of Directors) with
the Company terminates for reasons other than (a) termination that is for Cause,
(b) termination by reason of Total and Permanent  Disability or (c) death,  this
Option  under  the Plan may be  exercised  not  later  than 90 days  after  such
termination,  but may be exercised only to the extent the Option was exercisable
on the date of  termination,  and in no event after ten (10) years from the date
of granting thereof. Except as may be otherwise provided in this Agreement,  the
Option  granted  hereunder  shall not be affected by any change of employment or
service  (including  service  on the Board of  Directors)  so long as the Holder
continues to be employed by or provide services to the Company.

      "Cause" shall mean, as determined  only by the Board of Directors,  in its
sole  discretion  exercised in a  nondiscriminatory  manner,  (i) the  continued
failure of the Holder to substantially  perform his duties to the Company (other
than any such failure resulting from Total and Permanent  Disability),  (ii) the
engaging by the Holder in  willful,  reckless  or grossly  negligent  misconduct
which is determined by the Board of Directors to be materially  injurious to the
Company or any of its affiliates, monetarily or otherwise, or (iii) the Holder's
pleading guilty to or conviction of a felony.

                                    SECTION V
                            ACCELERATION OF EXERCISE

      (a)   Retirement  And Total And  Permanent  Disability.  If Holder  should
            incur a Total and  Permanent  Disability  while holding this Option,
            this Option shall become fully  exercisable as to all shares subject
            to it and may be exercised at any time within 365 days following the
            date of such  disability.  If Holder  should retire with the written
            consent of the Company,  this Option shall become fully  exercisable
            as to all  shares  and  shall  expire  on the  90th day  after  such
            retirement,  but in no event after the Expiration  Date set forth on
            Exhibit A.

      (b)   Death.  If Holder should die while holding this Option,  this Option
            may be exercised at any time within 365 days  following  the date of
            death. Such Option may be exercised by the beneficiary designated by
            the Holder on Exhibit B hereto, in accordance with Section X hereto,
            or, if no beneficiary is designated on Exhibit B, by the executor or
            administrator  of the  Holder's  estate,  but in no event  after the
            earlier  of (i) the date 365 days  following  the  Holder's  date of
            death, or (ii) the Expiration Date set forth on Exhibit A hereto.

                                       2
<PAGE>

      (c)   Change of Control.  This Option shall become fully  exercisable upon
            the circumstances stated in Section 2.4 of the Plan.

                                   SECTION VI
                      NON-ASSIGNABILITY AND TERM OF OPTION

      The  Option  shall  not be  transferrable  or  assignable  by the  Holder,
otherwise  than by will or the laws of descent and  distribution  and the Option
shall be  exercisable,  during the  Holder's  lifetime,  only by him or,  during
periods of legal  disability,  by his legal  representative.  No Option shall be
subject to execution, attachment, or similar process.

      In no event may the Option be  exercisable  to any extent by anyone  after
the  Expiration  Date  specified  in Exhibit  A. It is  expressly  agreed  that,
anything contained herein to the contrary notwithstanding,  this Agreement shall
not constitute,  or be evidence of, any agreement or  understanding,  express or
implied,  that the Company  will employ  Holder for any period of time or in any
position or for any particular compensation.

                                   SECTION VII
                            RIGHTS OF HOLDER IN STOCK

      Neither  Holder,  nor his  successor  in  interest,  shall have any of the
rights of a  shareholder  of the Company with  respect to shares  subject to the
Option until such shares are issued by the Company following the exercise of the
Option.

                                  SECTION VIII
                                     NOTICES

      Any  notice  to be  given  hereunder  shall  be in  writing  and  shall be
addressed to the Company, at 2100 South Bridge Parkway,  Suite 650,  Birmingham,
Alabama 35209, attention David E. Long, and any notice to be given to the Holder
shall be  addressed  to the address  designated  below the  signature  appearing
hereinafter, or at such other address as either party may hereafter designate in
writing to the other.  Any such  notice  shall have been  deemed duly given upon
three (3) days of sending such notice  enclosed in a properly  sealed  envelope,
addressed as aforesaid,  registered or certified and deposited  (with the proper
postage and registration or certificate fee prepaid) in the United States mail.

                                   SECTION IX
                      SUCCESSORS OR ASSIGNS OF THE COMPANY

      The Option  shall be binding  upon and shall  inure to the  benefit of any
successor of the Company.

                                    SECTION X
                                  MISCELLANEOUS

      (a)   Designation  of  Beneficiary.  The  Holder  shall  have the right to
            appoint any  individual  or legal  entity in  writing,  on Exhibit B
            hereto,  as his beneficiary to receive any Option (to the extent not
            previously  terminated or forfeited)  under this  Agreement upon the
            Holder's death. Such designation under this Agreement may be revoked
            by the Holder at any time and a new beneficiary may be designated by
            the Holder by execution and  submission to the Board of Directors of
            a revised Exhibit B to this Agreement.  In order to be effective,  a
            designation of

                                       3
<PAGE>

            beneficiary  must  be  completed  by the  Holder  on  Exhibit  B and
            received by the Board of Directors,  or its  designee,  prior to the
            date of the Holder's death. In the absence of such designation,  the
            Holder's  beneficiary  shall  be  the  legal  representative  of the
            Holder's estate.

      (b)   Incapacity  of Holder or  Beneficiary.  If any person  entitled to a
            distribution  under  this  Agreement  is  deemed  by  the  Board  of
            Directors  to be  incapable  of making an election  hereunder  or of
            personally   receiving   and  giving  a  valid   receipt   for  such
            distribution hereunder,  then, unless and until an election or claim
            therefor shall have been made by a duly appointed  guardian or other
            legal  representative  of such person,  the Board of  Directors  may
            provide for such election or  distribution or any part thereof to be
            made to any other person or institution then contributing  toward or
            providing  for the care and  maintenance  of such  person.  Any such
            distribution  shall be a distribution for the account of such person
            and a complete discharge of any liability of the Board of Directors,
            the Company and the Plan therefor.

      (c)   Incorporation  of the Plan. The terms and provisions of the Plan are
            hereby incorporated in this Agreement. Unless otherwise specifically
            stated herein,  such terms and provisions shall control in the event
            of any inconsistency between the Plan and this Agreement.

      (d)   Gender. Reference to the masculine herein shall be deemed to include
            the feminine, wherever appropriate.

      (e)   Counterparts.  This  Agreement  may  be  executed  in  one  or  more
            counterparts,  which shall  together  constitute a valid and binding
            agreement.

      (f)   Restrictions on Transfer.  Neither this Option nor the securities to
            be issued  pursuant  hereto have been  registered for sale under the
            Securities  Act of 1933 or any state law. The shares of common stock
            to be issued  pursuant  to this  Option  will be issued  pursuant to
            exemptions from registration  under such laws and may not be sold or
            otherwise  transferred by the Holder absent such  registration or an
            appropriate exemption from registration.

      (g)   Regulatory Capital Requirements. The Employee hereby agrees that all
            Options subject to this Agreement, to the extent not exercised,  may
            be  canceled  at any time by the  Company,  or the  Employee  may be
            required  to  exercise  such  Options,  to the  extent  they  may be
            exercised, in accordance with Section 4.9 of the Plan.

                                       4
<PAGE>

      IN WITNESS  WHEREOF,  this  Agreement has been executed by the Company and
the Holder as of the date and year first written above.

Holder: _________________________            NEXITY FINANCIAL CORPORATION
                                               a Delaware corporation

Address: ________________________         By: _____________________________
                                                     David E. Long
                                                     Its: President

                                       5
<PAGE>

                                    EXHIBIT A

                       SUPPLEMENTAL STOCK OPTION AGREEMENT
                  PURSUANT TO THE NEXITY FINANCIAL CORPORATION
                        INCENTIVE STOCK COMPENSATION PLAN

1.    Date of Grant:            ___________________________________________

2.    Holder:                   ___________________________________________

3.    Number of Shares:         ______________ shares of Common Stock

4.    Option Price Per Share:   One Dollar ($1.00)

5.    Exercise Schedule:        Twenty-five percent (25%) of the Options subject
to this  Agreement  shall first be exercisable on the Date of Grant stated above
and  twenty-five  percent (25%) of the Options  subject to this Agreement  shall
thereafter  be  exercisable  on  each  anniversary  date of the  Date  of  Grant
specified above until the Options are fully exercisable.

6.    Expiration Date: Ten years from the Date of Grant stated above.

                                       6
<PAGE>

                                    EXHIBIT B

                       DESIGNATION OF BENEFICIARY FOR THE
                       SUPPLEMENTAL STOCK OPTION AGREEMENT
                  PURSUANT TO THE NEXITY FINANCIAL CORPORATION
                        INCENTIVE STOCK COMPENSATION PLAN

Name of Holder: ___________________________________________________

Original Date of Agreement: _______________________________________

If I shall  cease to be  employed  or engaged as a  director  by the  Company by
reason of my death,  or if I shall die after I have  terminated my employment or
engagement  with the  Company  but,  prior to the  expiration  of the Option (as
provided in the  Agreement),  then all rights to the Option  granted  under this
Agreement  that I hereby  hold  upon my  death,  to the  extent  not  previously
terminated or  forfeited,  shall be  transferred  to  ___________________  as my
primary  beneficiary,  or  to  ____________________________,  as  may  secondary
beneficiary  if my  primary  beneficiary  is unable to accept  transfer,  in the
manner provided for in the Plan and the Agreement.

______________________________________

______________________________________
Date

Receipt acknowledged by:

______________________________________

______________________________________
Date

                                       7Exhibit 10.3

               NONCOMPETITION, SEVERANCE AND EMPLOYMENT AGREEMENT

      This Noncompetition, Severance and Employment Agreement (this "Agreement")
is made and entered into as of this 13th day of December 2000, by and between
Greg L. Lee, an individual (the "Executive"), and Nexity Financial Corporation,
a Delaware corporation and financial institution holding company headquartered
in Birmingham, Alabama (the "Company"). As used herein, the term "Company" shall
include the Company and any and all of its subsidiaries where the context so
applies.

                                   WITNESSETH

      WHEREAS the Company's Board of Directors (the "Board") believes that the
Executive has been instrumental in the success of the Company since its
inception in 1999;

      WHEREAS the Company desires to continue to employ the Executive as
Chairman of the Board and Chief Executive Officer of the Company and in such
other capacities as the Executive is currently employed as of the date hereof;

      WHEREAS the terms hereof are consistent with the executive compensation
objectives of the Company as established by the Board;

      WHEREAS the Executive is willing to accept the employment contemplated
herein under the terms and conditions set forth herein;

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

      1. Employment. Subject to the terms and conditions hereof, the Company
hereby employs the Executive and Executive hereby accepts such employment as the
Chairman of the Board and Chief Executive Officer of the Company having such
duties and responsibilities as are set forth in Section 3 below.

      2. Definitions. For purposes of this Agreement, the following terms shall
have the meanings specified below.

      "Change in Control" shall mean:

            (i)   The acquisition, directly or indirectly, by any Person [other
                  than (A) any employee plan established by the Company, (B) the
                  Company or any of its affiliates (as defined in Rule 12b-2
                  promulgated under the Exchange Act), (C) an underwriter
                  temporarily holding securities pursuant to an offering of such
                  securities, or (D) a corporation owned, directly or
                  indirectly, by stockholders of the Company in substantially
                  the same proportions as their ownership of the Company], of
                  securities of the Company (not including in the securities
                  beneficially owned by such Person any securities acquired
                  directly from the Company) representing an aggregate of 20% or
                  more of the combined voting power of the Company's then
                  outstanding voting securities;

            (ii)  During any period of up to two consecutive years, individuals
                  who, at the beginning of such period, constitute the Board
                  cease for any reason to constitute at least a majority
                  thereof, provided that any person who becomes a director
                  subsequent to the beginning of such period and whose
                  nomination for election is

<PAGE>

                  approved by at least two-thirds of the directors then still in
                  office who either were directors at the beginning of such
                  period or whose election or nomination for election was
                  previously so approved (other than a director (A) whose
                  initial assumption of office is in connection with an actual
                  or threatened election contest relating to the election of the
                  directors of the Company, as such terms are used in Rule
                  14a-11 of Regulation 14A under the Exchange Act, or (B) who
                  was designated by a Person who has entered into an agreement
                  with the Company to effect a transaction described in clause
                  (i), (iii) or (iv) of this definition) shall be deemed a
                  director as of the beginning of such period;

            (iii) (A) The stockholders of the Company approve a merger or
                  consolidation of the Company with any other corporation other
                  than (1) a merger or consolidation that would result in the
                  voting securities of the Company outstanding immediately prior
                  thereto continuing to represent (either by remaining
                  outstanding or by being converted into voting securities of
                  the surviving entity or any parent thereof), in combination
                  with the ownership of any trustee or other fiduciary holding
                  securities under an employee benefit plan of the Company, at
                  least 51% of the combined voting power of the voting
                  securities of the Company or such surviving entity or any
                  parent thereof outstanding immediately after such merger or
                  consolidation, or (2) a merger or consolidation effected to
                  implement a recapitalization of the Company (or similar
                  transaction) in which no Person is or becomes the beneficial
                  owner (as defined in clause (i) above), directly or
                  indirectly, of securities of the Company (not including in the
                  securities beneficially owned by such Person any securities
                  acquired directly from the Company) representing 20% or more
                  of the combined voting power of the Company's then outstanding
                  voting securities; or (B) A plan of complete liquidation of
                  the Company or an agreement for the sale or disposition by the
                  Company of all or substantially all of the Company's assets;
                  or

            (iv)  The occurrence of any other event or circumstance which is not
                  covered by (i) through (iii) above which the Board determines
                  affects control of the Company and, in order to implement the
                  purposes of this Agreement as set forth above, adopts a
                  resolution that such event or circumstance constitutes a
                  Change in Control for the purposes of this Agreement.

      "Cause" shall mean (a) fraud; (b) embezzlement; (c) conviction of the
Executive of any felony; (d) a material breach of, or the willful failure or
refusal by the Executive to perform and discharge the Executive's duties,
responsibilities and obligations under this Agreement; (e) any act of moral
turpitude or willful misconduct by the Executive intended to result in personal
enrichment of the Executive at the expense of the Company, or any of its
affiliates or which has a material adverse impact on the business or reputation
of the Company or any of its affiliates (such determination to be made by the
Board in its reasonable judgment); (f) intentional material damage to the
property or business of the Company; (g) gross negligence; or (h) the
ineligibility of the Executive to perform his duties because of a ruling,
directive or other action by any agency of the United States or any state of the
United States having regulatory authority over the Company; but only if (1) the
Executive has been provided with written notice of any assertion that there is a
basis for termination for cause which notice shall specify in reasonable detail
specific facts regarding any such assertion, (2) such written notice is provided
to the Executive a reasonable time before the Board meets to consider any
possible termination for cause, (3) at or prior to the meeting of the Board to
consider the matters described in the written notice, an opportunity is provided
to the

                                       2
<PAGE>

Executive and his counsel to be heard before the Board with respect to the
matters described in the written notice, (4) any resolution or other Board
action held with respect to any deliberation regarding or decision to terminate
the Executive for cause is duly adopted by a vote of a majority of the entire
Board of the Company at a meeting of the Board called and held and (5) the
Executive is promptly provided with a copy of the resolution or other corporate
action taken with respect to such termination. No act or failure to act by the
Executive shall be considered willful unless done or omitted to be done by him
not in good faith and without reasonable belief that his action or omission was
in the best interests of the Company. The unwillingness of the Executive to
accept any or all of a material change in the nature or scope of his position,
authorities or duties, a reduction in his total compensation or benefits, a
relocation that he deems unreasonable in light of his personal circumstances, or
other action by or request of the Company in respect of his position, authority,
or responsibility that he reasonably deems to be contrary to this Agreement, may
not be considered by the Board to be a failure to perform or misconduct by the
Executive.

      "Code" shall mean the Internal Revenue Code of 1986, as amended, or any
successor statute, rule or regulation of similar effect.

      "Confidential Information" shall mean all business and other information
relating to the business of the Company, including without limitation, technical
or nontechnical data, programs, methods, techniques, processes, financial data,
financial plans, product plans, and lists of actual or potential customers,
which (i) derives economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other Persons,
and (ii) is the subject of efforts that are reasonable under the circumstances
to maintain its secrecy or confidentiality. Such information and compilations of
information shall be contractually subject to protection under this Agreement
whether or not such information constitutes a trade secret and is separately
protectable at law or in equity as a trade secret. Confidential Information does
not include confidential business information which does not constitute a trade
secret under applicable law two years after any expiration or termination of
this Agreement.

      "Disability" or "Disabled" shall mean the Executive's inability as a
result of physical or mental incapacity to substantially perform his duties for
the Company on a full-time basis, with or without accommodation, for a period of
six (6) months.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

      "Involuntary Termination" shall mean the termination of Executive's
employment by the Executive following a Change in Control which, in the sole
judgment of the Executive, is due to (i) a change of the Executive's
responsibilities, position (including status as Chairman of the Board and Chief
Executive Officer of the Company, its successor or ultimate parent entity,
office, title, reporting relationships or working conditions) authority or
duties (including changes resulting from the assignment to the Executive of any
duties inconsistent with his positions, duties or responsibilities as in effect
immediately prior to the Change in Control); or (ii) a change in the terms or
status (including the rolling three year termination date) of this Agreement; or
(iii) a reduction in the Executive's compensation or benefits; or (iv) a forced
relocation of the Executive outside the Birmingham, Alabama metropolitan area;
or (v) a significant increase in the Executive's travel requirements.

      "Person" shall mean any individual, corporation, bank, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
other entity.

                                       3
<PAGE>

      "Voluntary Termination" shall mean the termination by Executive of
Executive's employment following a Change in Control which is not the result of
any of clauses (i) through (v) set forth in the definition of Involuntary
Termination above.

      3. Duties. During the term hereof, the Executive shall have such duties
and authority as are typical of the Chairman of the Board and Chief Executive
Officer of a company such as the Company, including, without limitation, those
specified in the Company's Bylaws. Executive agrees that during the Term hereof,
he will devote his full time, attention and energies to the diligent performance
of his duties. Nothing contained in this Agreement is intended to prohibit
Executive from expending a reasonable amount of time managing his personal
investments and discharging his civic responsibilities as long as such
activities do not materially interfere with Executive's duties and obligations
under this Agreement. Executive shall not, without the prior written consent of
the Company, at any time during the Term hereof (i) accept employment with, or
render services of a business, professional or commercial nature to, any Person
other than the Company, (ii) engage in any venture or activity which the Company
may in good faith consider to be competitive with or adverse to the business of
the Company or of any affiliate of the Company, whether alone, as a partner, or
as an officer, director, employee or shareholder or otherwise, except that the
ownership of not more than 5% of the stock or other equity interest of any
publicly traded corporation or other entity shall not be deemed a violation of
this Section, or (iii) engage in any venture or activity which the Board may in
good faith consider to interfere with Executive's performance of his duties
hereunder.

      4. Term. Unless earlier terminated as provided herein, the Executive's
employment hereunder shall be for a rolling term of three years (the "Term")
commencing on the date hereof. This Agreement shall be deemed to extend each day
for an additional day automatically and without any action on behalf of either
party hereto until Executive turns sixty; upon Executive's sixtieth birthday,
such "Term" shall be converted to a fixed term of three years and shall expire
(without any action on behalf of either party hereto) on Executive's sixty-third
birthday; this Agreement shall terminate upon the expiration of such Term.
Either party may, by notice to the other, cause this Agreement to cease to
extend automatically and, upon such notice, the "Term" of this Agreement shall
be the three years following the date of such notice, and this Agreement shall
terminate upon the expiration of such Term.

      5. Termination. This Agreement may be terminated as follows:

            5.1   The Company. The Company shall have the right to terminate
                  Executive's employment hereunder at any time during the Term
                  hereof (i) for Cause, (ii) if the Executive becomes Disabled,
                  (iii) upon the Executive's death, or (iv) without Cause.

            5.1.1 If the Company terminates Executive's employment under this
                  Agreement for Cause pursuant to clause (i) of Section 5.1, the
                  Company's obligations under this Agreement, including any
                  obligations of the Company under Section 5.2 hereof, shall
                  cease as of the date of termination; provided, however, if
                  Executive is terminated for Cause after a Change in Control,
                  then such termination shall be treated as a Voluntary
                  Termination as contemplated in Section 5.2.1 below.

            5.1.2 If the Company terminates Executive's employment under this
                  Agreement pursuant to clauses (ii) or (iii) of Section 5.1,
                  the Company's obligations hereunder, including the obligations
                  under Sections 6.1 and 6.4 hereof, shall only c ease 180

                                       4
<PAGE>

                  days after the event giving rise to such termination. The
                  termination shall be deemed to occur on the date of death or
                  Disability, as appropriate.

            5.1.3 If the Company terminates Executive without Cause pursuant to
                  clause (iv) of Section 5.1, Executive shall be entitled to
                  receive immediately as severance upon such termination, less
                  applicable taxes and other deductions, a lump sum equal to the
                  aggregate cash compensation provided in Sections 6.1 and 6.2
                  equal to 1.5 times Executive's annual compensation being paid
                  at the time of termination, plus the benefits provided in
                  Section 6.4 for 18 months. For purposes of determining
                  compensation which is not fixed (such as a bonus), the annual
                  amount of such unfixed compensation shall be deemed to be
                  equal to the average of such compensation over the three year
                  period immediately prior to the termination.

            5.1.4 In the event of termination without Cause pursuant to clause
                  (iv) of Section 5.1, (A) all rights of Executive pursuant to
                  awards of share grants or options granted by the Company shall
                  be deemed to have vested and shall be released from all
                  conditions and restrictions, except for restrictions on
                  transfer pursuant to the Securities Act of 1933, as amended,
                  (B) the Executive shall be deemed to be credited with service
                  with the Company for such remaining Term for the purposes of
                  the Company's benefit plans, (C) the Executive shall be deemed
                  to have retired from the Company and shall be entitled as of
                  the termination date, or at such later time as he may elect to
                  commence receiving the total combined qualified and
                  non-qualified retirement benefit to which he is entitled
                  hereunder, or his total non-qualified retirement benefit
                  hereunder if under the terms of the Company's qualified
                  retirement plan for salaried employees he is not entitled to a
                  qualified benefit, and (D) if any provision of this Section
                  5.1.4 cannot, in whole or in part, be implemented and carried
                  out under the terms of the applicable compensation, benefit,
                  or other plan or arrangement of the Company because the
                  Executive has ceased to be an actual employee of the Company,
                  because the Executive has insufficient or reduced credited
                  service based upon his actual employment by the Company,
                  because the plan or arrangement has been terminated or amended
                  after the effective date of this Agreement, or because of any
                  other reason, the Company itself shall pay or otherwise
                  provide the equivalent of such rights, benefits and credits
                  for such benefits to Executive, his dependents, beneficiaries
                  and estate.

            5.2   By Executive. Except when Executive's employment is terminated
                  for Cause prior to a Change in Control or for death or
                  Disability, under Section 5.1(i), (ii) or (iii), Executive
                  shall have the right to terminate his employment hereunder if
                  (i) the Executive at any time gives written notice of
                  termination (for any reason) to the Company; (ii) there is a
                  Voluntary Termination; (iii) there is an Involuntary
                  Termination, or (iv) the Company materially breaches this
                  Agreement and such breach is not cured within 30 days after
                  written notice of such breach is given by the Executive to the
                  Company.

            5.2.1 If Executive terminates his employment hereunder pursuant to
                  clauses (i) or (ii) of Section 5.2, Executive shall be
                  entitled to receive immediately as severance upon such
                  termination, less applicable taxes and other deductions, a
                  lump sum equal to the aggregate cash compensation provided in
                  Sections 6.1 and 6.2 equal to 1.5 times Executive's annual
                  compensation being paid at the time of termination, plus

                                       5
<PAGE>

                  the benefits provided in Section 6.4 for 18 months. For
                  purposes of determining compensation which is not fixed (such
                  as a bonus), the annual amount of such unfixed compensation
                  shall be deemed to be the equal to the average of such
                  compensation over the three year period immediately prior to
                  the termination.

            5.2.2 If Executive terminates his employment hereunder pursuant to
                  clauses (iii) or (iv) of Section 5.2, Executive shall be
                  entitled to receive immediately as severance upon such
                  termination, less applicable taxes and other deductions, a
                  lump sum equal to the aggregate cash compensation provided in
                  Sections 6.1 and 6.2 equal to 3 times Executive's annual
                  compensation being paid at the time of termination plus the
                  benefits provided in Section 6.4 for 36 months. For purposes
                  of determining compensation which is not fixed (such as a
                  bonus), the annual amount of such unfixed compensation shall
                  be deemed to be the equal to the average of such compensation
                  over the three year period immediately prior to the
                  termination.

            5.2.3 In addition, in the event of termination pursuant to any of
                  clauses (i) through (iv) of this Section 5.2, (A) all rights
                  of Executive pursuant to awards of share grants or options
                  granted by the Company shall be deemed to have vested and
                  shall be released from all conditions and restrictions, except
                  for restrictions on transfer pursuant to the Securities Act of
                  1933, as amended, (B) the Executive shall be deemed to be
                  credited with service with the Company for such remaining Term
                  for the purposes of the Company's benefit plans, (C) the
                  Executive shall be deemed to have retired from the Company and
                  shall be entitled as of the termination date, or at such later
                  time as he may elect to commence receiving the total combined
                  qualified and non-qualified retirement benefit to which he is
                  entitled hereunder, or his total non-qualified retirement
                  benefit hereunder if under the terms of the Company's
                  qualified retirement plan for salaried employees he is not
                  entitled to a qualified benefit, and (D) if any provision of
                  this Section 5.2.3 cannot, in whole or in part, be implemented
                  and carried out under the terms of the applicable
                  compensation, benefit, or other plan or arrangement of the
                  Company because the Executive has ceased to be an actual
                  employee of the Company, because the Executive has
                  insufficient or reduced credited service based upon his actual
                  employment by the Company, because the plan or arrangement has
                  been terminated or amended after the effective date of this
                  Agreement, or because of any other reason, the Company itself
                  shall pay or otherwise provide the equivalent of such rights,
                  benefits and credits for such benefits to Executive, his
                  dependents, beneficiaries and estate.

      6. Compensation. In consideration of Executive's services and covenants
hereunder, Company shall pay to Executive the compensation and benefits
described below (which compensation shall be paid in accordance with the normal
compensation practices of the Company and shall be subject to such deductions
and withholdings as are required by law or policies of the Company in effect
from time to time, provided that his salary pursuant to Section 6.1 shall be
payable not less frequently than monthly):

            6.1   Annual Salary. During the Term hereof, the Company shall pay
                  to Executive a base salary established by the Board which for
                  the first year of the Term shall be not less than the salary
                  of the Executive for any of the past three years. Executive's
                  salary will be reviewed by the Board each fiscal year and, in
                  the sole discretion of the Board, may be increased for such
                  year; provided, however, that following a

                                       6
<PAGE>

                  Change in Control, the base salary shall be increased annually
                  by a percentage at least equal to the average annual increase
                  over the past three years.

            6.2   Annual Incentive Bonus. During the Term hereof, the Board may
                  pay to Executive an annual incentive cash bonus determined by
                  the Board.

            6.3   Stock Options and Restricted Stock. During the Term hereof,
                  the Board shall grant Executive options to purchase Company
                  Common Stock in accordance with the terms of the Company's
                  Incentive Stock Compensation Plan.

            6.4   Other Benefits. Executive shall be entitled to share in any
                  other employee benefits generally provided by the Company to
                  its most highly ranking executives for so long as the Company
                  provides such benefits. The Company also agrees to provide
                  Executive with a Company-paid automobile, reasonable club dues
                  for one country club and a $500,000 whole life insurance
                  policy and such disability insurance as is in force on the
                  date of this Agreement. Executive shall also be entitled to
                  participate in all other benefits accorded general Company
                  employees.

      7. Excess Parachute Payments.

            7.1   It is the intention of the parties hereto that the severance
                  payments and other compensation provided for herein (other
                  than payments pursuant to Section 9) are reasonable
                  compensation for Executive's services to the Company and shall
                  not constitute "excess parachute payments" within the meaning
                  of Section 280G of the Code and any regulations hereunder. In
                  the event that the Company's independent accountants acting as
                  auditors for the Company on the date of a Change in Control
                  determine that the payments provided for herein constitute
                  "excess parachute payments," then the compensation payable
                  hereunder shall be reduced to the point that such compensation
                  shall not qualify as "excess parachute payments."

            7.2   To the extent that payments under Section 9 cause a "parachute
                  payment," as defined in Section 280G(b)(2) of the Code, the
                  Company shall indemnify Executive and hold him harmless
                  against all claims, losses, damages, penalties, expenses, and
                  excise taxes relating thereto. To effect this indemnification,
                  the Company shall pay Executive an additional amount that is
                  sufficient to pay any excise tax imposed by Section 4999 of
                  the Code on the payments and benefits to which Executive is
                  entitled without the additional amount plus any penalties or
                  interest imposed by the Internal Revenue Service in regard to
                  such amounts, plus another additional amount sufficient to pay
                  all the excise and income taxes on the additional amounts. The
                  determination of any additional amount that must be paid under
                  this section at any time shall be made in good faith by the
                  independent auditors then employed by the Company.

      8. Confidentiality. Executive shall hold in a fiduciary capacity for the
benefit of the Company all Confidential Information relating to the Company or
any of its affiliated companies, and their respective businesses, which shall
have been obtained by the Executive during the Executive's employment by the
Company or any of its affiliated companies. After termination of Executive's
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise

                                       7
<PAGE>

be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it. Upon the termination or expiration of his employment
hereunder, Executive agrees to deliver promptly to the Company all Company
files, customer lists, management reports, memoranda, research, Company forms,
financial data and reports and other documents supplied to or created by him in
connection with his employment hereunder (including all copies of the foregoing)
in his possession or control and all of the Company's equipment and other
materials in his possession or control. In no event shall an asserted violation
of the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this Agreement.

      9. Noncompetition and Nonsolicitation Agreement. If this Agreement is
terminated by the Company for Cause pursuant to Section 5.1(i) or by Executive
for any reason other than pursuant to clauses (iii) or (iv) of Section 5.2,
Executive shall not enter into an employment relationship or a consulting
arrangement with any other bank, thrift, lending or financial institution which
has as its primary business strategy Internet banking (hereinafter a
"competitor") within one year of the anniversary of the date of such termination
(the "Noncompete Period"). The obligations contained in this Section 9 shall not
prohibit Executive from being an owner of not more than 5% of the outstanding
stock of any class of a corporation, which is publicly traded, so long as
Executive has no active participation in the business of such corporation.

            9.1   During the Noncompete Period, Executive shall not directly or
                  indirectly through another entity (i) induce or attempt to
                  induce any employee of Company to leave the employ of Company,
                  including but not limited to a competitor, or in any way
                  interfere with the relationship between Company and any
                  employee thereof, (ii) hire any person who was an employee of
                  Company or any subsidiary at any time during the time that
                  Executive was employed by Company, or (iii) induce or attempt
                  to induce any customer, supplier, or other entity in a
                  business relation of Company to cease doing business with the
                  Company, or in any way interfere with the relationship between
                  any such customer, supplier, or business relation and the
                  Company or do business with a competitor.

            9.2   The severance payments and benefits to which Executive is
                  entitled under this Agreement shall be deemed adequate
                  consideration for Executive's obligations under Sections 8 and
                  9 hereof.

            9.3   If, at the time of enforcement of this Section 9, a court
                  shall hold that the duration, scope or area restrictions
                  stated herein are unreasonable under circumstances then
                  existing, the parties agree that the maximum duration, scope
                  or area reasonable under such circumstances shall be
                  substituted for the stated duration, scope or area and that
                  the court shall be allowed to revise the restrictions
                  contained herein to cover the maximum period, scope and area
                  permitted by law. Executive agrees that the restrictions
                  contained in this Section 9 are reasonable.

            9.4   In the event of the breach or a threatened breach by Executive
                  of any of the provisions of this Section 9, the Company, in
                  addition and supplementary to other rights and remedies
                  existing in its favor, may apply to any court of law or equity
                  of competent jurisdiction for specific performance and/or
                  injunctive or other relief in order to enforce or prevent any
                  violations of the provisions hereof (without posting a bond or
                  other security). In addition, in the event of an alleged
                  breach or

                                       8
<PAGE>

                  violation by Executive of this Section 9, the Noncompete
                  Period shall be tolled until such breach or violation has been
                  duly cured.

      10. Superceded Agreements. This Agreement supercedes and replaces any
previous Agreement between the Executive and the Company regarding employment of
Executive.

      11. Assignment. The parties acknowledge that this Agreement has been
entered into due to, among other things, the special skills of Executive, and
agree that this Agreement may not be assigned or transferred by Executive, in
whole or in part, without the prior written consent of the Company.

      12. Notices. All notices, requests, demands, and other communications
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given if delivered or seven days after mailing if mailed, first class,
certified mail postage prepaid:

      To the Company:     Nexity Financial Corporation
                          3500 Blue Lake Drive
                          Suite 330
                          Birmingham, Alabama 35243
                          Attn: President

      To Executive:       Greg L. Lee

                          ________________________________
                          ________________________________

      Any party may change the address to which notices, requests, demands, and
other communications shall be delivered or mailed by giving notice thereof to
the other party in the same manner provided herein.

      13. Provisions Severable. If any provision or covenant, or any part
thereof, of this Agreement should be held by any court to be invalid, illegal or
unenforceable, either in whole or in part, such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of
the remaining provisions or covenants, or any part thereof, of this Agreement,
all of which shall remain in full force and effect.

      14. Remedies in the Absence of a Change in Control. The terms of this
Section 14 will apply in the absence of a Change in Control.

            14.1  The Executive acknowledges that if he breaches or threatens to
                  breach his covenants and agreements in this Agreement, such
                  actions may cause irreparable harm and damage to the Company
                  which could not be compensated in damages. Accordingly, if
                  Executive breaches or threatens to breach this Agreement, the
                  Company shall be entitled to injunctive relief, in addition to
                  any other rights or remedies of the Company.

            14.2  All claims, disputes and other matters in question between the
                  Executive and the Company arising out of or related to the
                  interpretation of this Agreement or the breach of this
                  Agreement, except as specifically governed by the foregoing
                  provisions where there may be irreparable harm and damage to
                  the Company

                                       9
<PAGE>

                  which could not be compensated in damages, shall be decided by
                  arbitration in accordance with the rules of the American
                  Arbitration Association. This agreement to arbitrate shall be
                  specifically enforceable under applicable law in any court
                  having jurisdiction. The award rendered by the arbitrator
                  shall be final and judgment may be entered upon it in
                  accordance with the applicable law of any court having
                  jurisdiction thereof.

            14.3  In the event that the Executive is reasonably required to
                  engage legal counsel to enforce his rights hereunder against
                  the Company, Executive shall be entitled to receive from the
                  Company his reasonable attorneys' fees and costs; provided
                  that Executive shall not be entitled to receive those fees and
                  costs related to matters, if any, which were the subject of
                  litigation and with respect to which a judgment is rendered
                  against Executive.

      15. Remedies in the Event of a Change in Control. The terms of this
Section 15 shall apply in the event of a Change of Control.

            15.1  The Executive acknowledges that if he breaches or threatens to
                  breach his covenants and agreements in this Agreement, such
                  actions may cause irreparable harm and damage to the Company
                  which could not be compensated in damages. Accordingly, if
                  Executive breaches or threatens to breach this Agreement, the
                  Company shall be entitled to injunctive relief, in addition to
                  any other rights or remedies of the Company. All claims,
                  disputes and other matters in question between the Executive
                  and the Company arising out of or related to the
                  interpretation of this Agreement or the breach of this
                  Agreement shall be decided under and governed by the laws of
                  the State of Alabama.

            15.2  The Company is aware that upon the occurrence of a Change in
                  Control, the Board or a stockholder of the Company may then
                  cause or attempt to cause the Company to refuse to comply with
                  its obligations under this Agreement, or may cause or attempt
                  to cause the Company to institute, or may institute,
                  litigation seeking to have this Agreement declared
                  unenforceable, or may take, or attempt to take, other action
                  to deny the Executive the benefits intended under this
                  Agreement. In these circumstances, the purpose of this
                  Agreement could be frustrated. It is the intent of the parties
                  that the Executive not be required to incur the legal fees and
                  expenses associated with the protection or enforcement of his
                  rights under this Agreement by litigation or other legal
                  action because such costs would substantially detract from the
                  benefits intended to be extended to the Executive hereunder,
                  nor be bound to negotiate any settlement of his rights
                  hereunder under threat of incurring such costs. Accordingly,
                  if at any time after a Change of Control, it should appear to
                  the Executive that the Company is or has acted contrary to or
                  is failing or has failed to comply with any of its obligations
                  under this Agreement for the reason that it regards this
                  Agreement to be void or unenforceable or for any other reason,
                  or that the Company has purported to terminate his employment
                  for cause or is in the course of doing so in either case
                  contrary to this Agreement, or in the event that the Company
                  or any other person takes any action to declare this Agreement
                  void or unenforceable, or institutes any litigation or other
                  legal action designed to deny, diminish or to recover from the
                  Executive the benefits provided or intended to be provided to
                  him hereunder, and the Executive has acted in good

                                       10
<PAGE>

                  faith to perform his obligations under this Agreement, the
                  Company irrevocably authorizes the Executive from time to time
                  to retain counsel of his choice at the expense of the Company
                  to represent him in connection with the protection and
                  enforcement of his rights hereunder, including without
                  limitation representation in connection with termination of
                  his employment contrary to this Agreement or with the
                  initiation or defense of any litigation or other legal action,
                  whether by or against the Executive or the Company or any
                  director, officer, stockholder or other person affiliated with
                  the Company, in any jurisdiction. The reasonable fees and
                  expenses of counsel selected from time to time by the
                  Executive as hereinabove provided shall be paid or reimbursed
                  to the Executive by the Company on a regular, periodic basis
                  upon presentation by the Executive of a statement or
                  statements prepared by such counsel representing other
                  officers or key executives of the Company in connection with
                  the protection and enforcement of their rights under similar
                  agreements between them and the Company, and, unless in his
                  sole judgment use of common counsel could be prejudicial to
                  him or would not be likely to reduce the fees and expenses
                  chargeable hereunder to the Company, the Executive agrees to
                  use his best efforts to agree with such other officers or
                  executives to retain common counsel.

      16. Waiver. Failure of either party to insist, in one or more instances,
on performance by the other in strict accordance with the terms and conditions
of this Agreement shall not be deemed a waiver or relinquishment of any right
granted in this Agreement or of the future performance of any such term or
condition or of any other term or condition of this Agreement, unless such
waiver is contained in a writing signed by the party making the waiver.

      17. Amendments and Modifications. This Agreement may be amended or
modified only by a writing signed by other parties hereto.

      18. Governing Law. The validity and effect of this agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Alabama.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.

EXECUTIVE

/s/ Greg L. Lee
------------------------
Greg L. Lee

NEXITY FINANCIAL CORPORATION

/s/ David E. Long
------------------------
By: David E. Long
    President

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]