Document:

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                                                                    EXHIBIT 10.2

                              SEPARATION AGREEMENT

         AGREEMENT dated as of September 14, 2000 between Internet Pictures
Corporation, a Delaware corporation with its principal offices at 1009 Commerce
Park Drive, Oak Ridge, Tennessee, 37830 (the "COMPANY") and Jeffrey D. Peters
("EMPLOYEE").

         WHEREAS, Interactive Pictures Corporation, a Tennessee corporation and
successor to the Company, and Employee entered into an employment and non
competition agreement dated as of August 17, 1998, as amended by the Amendment
to the Employment and Non Competition Agreement, dated as of September 14, 2000,
between the Company and Employee (the "EMPLOYMENT AGREEMENT");

         WHEREAS, the Company and Employee desire to terminate the Employment
Agreement; and

         WHEREAS, the Company and Employee desire to enter into this Agreement;

          NOW, THEREFORE, in consideration of the premises and mutual covenants
herein and for other good and valuable consideration, the parties agree as
follows:

         Section 1.    Termination of Employment Agreement. The Company and
Employee mutually agree to terminate the Employment Agreement, and all rights
and duties arising from it or under it, effective as of December 31, 2000 (the
"TERMINATION DATE"), except as specifically provided herein.

         Section 2.    Severance Payments to Employee.

         (a)      Within ten (10) days of the Termination Date, the Company
shall pay to Employee a lump sum severance payment in cash (the "SEVERANCE
PAYMENT") equal to the sum of:

                  (i)      the Employee's annual base salary as in effect on the
         date hereof; and

                  (ii)     Any portion of Employee's Base Salary, vacation time
         and travel, entertainment or other business expenses incurred or
         accrued but not paid, as of the Termination Date.

         (b)      The Company may withhold from any amounts payable under this
Agreement any U.S. federal, state and local taxes as may be required to be
withheld pursuant to any applicable law or regulation. The Company's obligations
to make any payments pursuant to this Section 2 are expressly conditioned on
Employee's continued compliance with the provisions of this Agreement. Employee
will provide to the Company within ten (10) days of the Termination Date
documentation reasonably required to substantiate the business-related expenses
described in Section 2(a)(ii) of this Agreement.

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         Section 3.        Conditional Nature of the Severance Payment;
Non-Competition Agreement.

         (a)      Conditional Nature of the Severance Payment; Non-Competition.
Notwithstanding anything in this Agreement, Employee acknowledges that the
provisions of Section 7 of the Employment Agreement and the Confidentiality and
Invention Assignment Agreement dated as of _______, 1998 (the "Confidentiality
Agreement") shall remain in full force and effect for the time periods specified
therein. Employee agrees and acknowledges that the Employee's right to receive
and keep the severance payments and other benefits set forth in Section 2 is
conditioned upon Employee continuing to observe, and not be in breach of, the
provisions of Section 7 of the Employment Agreement and all provisions of the
Confidentiality Agreement. Upon any breach of Section 7 of the Employment
Agreement or the Confidentiality Agreement, all severance payments pursuant to
Section 2 of this Agreement shall immediately cease, or if already paid, shall
be recoverable in full by the Company.

         (b)      Exclusions. No provision of this Agreement shall be construed
to preclude Employee from performing the same services which the Company hereby
retains Employee to perform for any person or entity which is not a Competitor
of the Company upon the expiration or termination of Employee's employment (or
any post-employment consultation) so long as Employee does not thereby violate
any term of the Employment Agreement or the Confidentiality Agreement.

         Section 4.        Remedies. Employee's obligations under Section 3 of
this Agreement shall survive the Termination Date. Employee acknowledges that a
remedy at law for any breach or threatened breach by Employee of Section 3 of
this Agreement would be inadequate and Employee therefore agrees that the
Company shall be entitled to injunctive relief in any court of competent
jurisdiction in the case of any such breach or threatened breach. Employee
acknowledges that this Section 4 does not limit the Company's right to seek
monetary damages for breach of this Agreement.

         Section 5.        Golden Parachute Excise Tax.

         (a)      Reimbursement. In the event that it shall be determined that
any payment or other benefit by the Company to or for the benefit of Employee
under this Agreement or otherwise, whether paid or payable, but determined
without regard to any additional payments required under this Section (the
"PAYMENTS"), would be subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code (the "EXCISE TAX"), then Employee shall be entitled to
receive (i) an additional payment from the Company (the "REIMBURSEMENT PAYMENT")
sufficient to pay the Excise Tax, and (ii) an additional payment from the
Company sufficient to pay the Excise Tax and federal and state income taxes
arising from the payments made by the Company to Employee pursuant to this
sentence.

         (b)      Determination. Unless the Company and Employee otherwise agree
in writing, any determination required under this Section 5 shall be made in
writing by the Company's primary independent public accounting firm (the
"ACCOUNTANTS"), whose determination shall be conclusive and binding upon
Employee and the Company for all purposes. For purposes of making the
calculations required by this Section 5, the Accountants may make reasonable

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assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Sections
280G and 4999 of the Internal Revenue Code. The Company and Employee shall
furnish to the Accountants such information and documents as the Accountants may
reasonably request in order to make their determination under this Section. The
Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section.

         Section 6.        Release. For and in consideration of the payment to
be made and for other valuable consideration to be provided to Employee pursuant
to this Agreement, Employee, for himself, his heirs, executors, administrators,
trustees, legal representatives, successors and assigns (hereinafter,
collectively referred to as "Releasors"), hereby forever releases and discharges
the Company and any of its past, present or future parent entities, and all of
the partners, subsidiaries, affiliates, divisions, employee benefit and/or
pension plans or funds, successors and assigns of each and any of its or their
past, present or future directors, officers, attorneys, agents, trustees,
administrators, employees, or assigns (whether acting as agents for the Company
or in their individual capacities) (hereinafter collectively referred to as
"Releasees") from any and all claims, demands, causes of action, and liabilities
of any kind whatsoever (upon any legal or equitable theory, whether contractual,
common-law, statutory, federal, state, local, or otherwise), whether known or
unknown, by reason of any act, omission, transaction or occurrence which
Releasors ever had, now have or hereafter can, shall or may have against
Releasees up to and including the Termination Date. Without limiting the
generality of the foregoing, Releasors hereby release and discharge Releasees
from:

         (a)      any and all claims relating to Employee's employment
("employment" in this Agreement refers to any remunerative relationship,
including without limitation, any form of independent contractor or consultant
relationship);

         (b)      any and all claims of employment discrimination, harassment
and/or retaliation under any federal, state or local statute or ordinance,
including without limitation, any and all claims under Title VII of the Civil
Rights Act, the Age Discrimination in Employment Act, the Fair Labor Standards
Act, the Family and Medical Leave Act, the Americans with Disabilities Act, the
Employee Retirement Income Security Act, the New York State Executive Law, the
New York City Administrative Code;

         (c)      any and all claims for tortious conduct, wrongful discharge
and/or breach of employment contract or commission agreement; and

         (d)      any all claims for attorney's fees, costs, disbursements and
the like which Employee ever had, now has or hereafter can, shall or may have
against Releasees for, upon or by reason of any act, omission, transaction or
occurrence up to and including the Termination Date.

          Section 7.       Miscellaneous.

         (a)      Governing Law/Jurisdiction. This Agreement shall be governed
by and construed in accordance with the laws of the state of Tennessee, without
reference to principles of conflict of laws.

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         (b)      Entire Agreement/Amendments. This Agreement shall supersede
the Employment Agreement in its entirety and contains the entire understanding
of the parties with respect to the termination of the Employment Agreement and
any rights and duties arising under or from it. There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein or therein. This Agreement may not be altered, modified, or amended
except by written instrument signed by the parties hereto.

         (c)      No Waiver. The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver of such party's rights or deprive such party of the right thereafter to
insist upon strict adherence to that term or any other term of this Agreement.

         (d)      Severability. In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.

         (e)      Assignment. This Agreement shall not be assignable by Employee
and may be assigned by the Company without the consent of Employee; provided,
however, that the Company shall require any successor to substantially all of
the stock, assets or business of the Company to assume this Agreement.

         (f)      Successors; Binding Agreement. This Agreement shall inure to
the benefit of and be binding upon the personal or legal representatives,
executors, administrators, successors, including successors to all or
substantially all of the stock, business and/or assets of the Company, heirs,
distributees, devisees and legatees of the parties.

         (g)      Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth on the execution page of this Agreement, provided
that all notices to the Company shall be directed to the attention of the
General Counsel of the Company, or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon receipt.

         (h)      Counterparts. This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

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

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                                 By:
                                    -------------------------------------------
                                            Internet Pictures Corporation

                                     Title:    Chairman and Chief Executive
                                               Officer

                                     Address:  1009 Commerce Park Dr.
                                               Oak Ridge, Tennessee 37830

                                 -----------------------------------------
                                 JEFFREY D. PETERS

                                 Address:

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                                                                 EXHIBIT 10.5(B)

                           CHANGE OF CONTROL AGREEMENT

         AGREEMENT by and between Resource Bancshares Mortgage Group, Inc., a
Delaware corporation ("RBMG"), and Steven F. Herbert (the "Executive"), dated as
of the 27th day of July, 2000.

         The Board of Directors of RBMG (the "Board") has determined that it is
in the best interests of RBMG and its shareholders to assure that the Company
(as defined below) will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of RBMG. The Board believes it is imperative to diminish the
inevitable distraction of the Executive by virtue of the personal uncertainties
and risks created by a pending or threatened Change of Control and to encourage
the Executive's full attention and dedication to the Company currently and in
the event of any threatened or pending Change of Control. Therefore, in order to
accomplish these objectives, the Board has caused RBMG to enter into this
Agreement.

         NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

         1. Certain Definitions. As used in this Agreement, the following terms
shall have the meanings set forth below:

         (a) "AFR" shall have the meaning set forth in Section 6.

         (b) "Affiliated Company" shall mean any corporation, partnership or
other entity which controls, is controlled by or is under common control with
RBMG.

         (c) "Annual Base Salary" shall have the meaning set forth in Section
1(q)(i).

         (d) "Board" shall have the meaning set forth in the recitals to this
Agreement.

         (e) "Business Combination" shall have the meaning set forth in Section
1(g)(iii).

         (f) "Cause" shall mean:

                  (i) the willful and continued failure of the Executive to
perform substantially the Executive's duties with the Company (other than any
such failure resulting from incapacity due to physical or mental illness), after
a written demand for substantial performance is delivered to the Executive by
the Board or the Chief Executive Officer of RBMG which specifically identifies
the manner in which the Board or Chief Executive Officer believes that the
Executive has not substantially performed the Executive's duties; or

                  (ii) the willful engaging by the Executive in illegal conduct
or gross misconduct which is materially and demonstrably injurious to the
Company.

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         For purposes of this provision, no act, or failure to act, on the part
of the Executive shall be considered "willful" unless it is done, or omitted to
be done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer or
a senior officer of RBMG or based upon the advice of counsel for RBMG shall be
conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company. The cessation of employment
of the Executive shall not be deemed to be for Cause unless and until there
shall have been delivered to the Executive a copy of a resolution duly adopted
by the affirmative vote of not less than three-quarters of the entire membership
of the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding that,
in the good faith opinion of the Board, the Executive is guilty of the conduct
described in Section 1(f)(i) or 1(f)(ii) above, and specifying the particulars
thereof in detail.

         (g) "Change of Control" shall mean:

                  (i) The acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act")) (a "Person") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or
more of either (A) the then outstanding shares of common stock of RBMG (the
"Outstanding RBMG Common Stock") or (B) the combined voting power of the then
outstanding voting securities of RBMG entitled to vote generally in the election
of directors (the "Outstanding RBMG Voting Securities"); provided, however, that
for purposes of this Section 1(g)(i), the following acquisitions shall not
constitute a Change of Control: (W) any acquisition directly from RBMG or any
corporation controlled by RBMG, (X) any acquisition by RBMG or any corporation
controlled by RBMG, (Y) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by RBMG or any corporation controlled by RBMG or
(Z) any acquisition by any corporation pursuant to a transaction which complies
with clauses (A), (B) and (C) of Section 1(g)(iii); or

                  (ii) That individuals who, as of the date hereof, constitute
the Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by RBMG's shareholders, was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board, but excluding, for
this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

                  (iii) Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of RBMG or the acquisition of assets of another corporation (a "Business
Combination"), in each case, unless, following such Business Combination, (A)
all or substantially all of the individuals and entities who were the beneficial

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owners, respectively, of the Outstanding RBMG Common Stock and Outstanding RBMG
Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns RBMG or all or substantially all of RBMG's assets either
directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business Combination,
of the Outstanding RBMG Common Stock and Outstanding RBMG Voting Securities, as
the case may be, (B) no Person (excluding any corporation resulting from such
Business Combination or any employee benefit plan (or related trust) of RBMG or
such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock or the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as
the case may be, of the corporation resulting from such Business Combination
(including, without limitation, a corporation which as a result of such
transaction owns RBMG or all or substantially all of RBMG's assets either
directly or through one or more subsidiaries) except to the extent that such
ownership existed prior to the Business Combination and (C) at least a majority
of the members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for
such Business Combination; or

                  (iv) Approval by the shareholders of RBMG of a complete
liquidation or dissolution of RBMG.

         (h) "Change of Control Period" shall mean the period commencing on the
Effective Date and ending on the second anniversary of the Effective Date.

         (i) "Code" shall mean the Internal Revenue Code of 1986, as amended.

         (j) "Company" shall include RBMG and its Affiliated Companies.

         (k) "Date of Termination" means (i) if the Executive's employment is
terminated by RBMG for Cause, or by the Executive for Good Reason, the date of
receipt of the Notice of Termination or any later date specified therein, as the
case may be, (ii) if the Executive's employment is terminated by RBMG other than
for Cause or Disability, the Date of Termination shall be the date on which RBMG
notifies the Executive of such termination and (iii) if the Executive's
employment is terminated by reason of death or Disability, the Date of
Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

         (l) "Disability" shall mean the absence of the Executive from the
Executive's duties with the Company on a full-time basis for 120 consecutive
business days as a result of incapacity due to mental or physical illness which
is determined to be total and permanent by a physician selected by RBMG or its
insurers and acceptable to the Executive or the Executive's legal
representatives.

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         (m) "Disability Effective Date" shall have the meaning set forth in
Section 3.

         (n) "Effective Date" shall mean the first date on which a Change of
Control occurs. If a Change of Control occurs and the Executive's employment
with the Company is terminated prior to the date on which the Change of Control
occurs, and if it is reasonably demonstrated by the Executive that such
termination of employment arose in connection with or anticipation of a Change
of Control, then "Effective Date" shall mean the date immediately prior to the
date of such termination of employment.

         (o) "Exchange Act" shall have the meaning set forth in Section 1(g)(i).

         (p) "Executive" shall have the meaning set forth in the recitals to
this Agreement.

         (q) "Good Reason" shall mean:

                  (i) a reduction by the Company in the Executive's annual base
salary as in effect immediately prior to the Effective Date (the "Annual Base
Salary");

                  (ii) the Company requiring the Executive to be based at a
location more than 100 miles from the location at which he is based immediately
prior to the Effective Date (except for required travel which is substantially
consistent with travel obligations as of the date of this Agreement);

                  (iii) the failure by the Company to pay the Executive any
portion of the Executive's current compensation within seven days of the date
such compensation is due, other than an isolated, insubstantial and inadvertent
failure not occurring in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by the Executive;

                  (iv) the failure by the Company to continue any material
benefit plan in which the Executive participates immediately prior to the
Effective Date (unless the failure did not occur in bad faith and is remedied by
the Company, promptly after receipt of notice thereof given by the Executive, by
the Company providing an equitable arrangement with respect to such plan);

                  (v) any purported termination by the Company of the
Executive's employment otherwise than as expressly permitted by this Agreement;
or

                  (vi) any failure by RBMG to comply with and satisfy Section
8(c) of this Agreement.

         For purposes of this Section 1(q), any good faith determination of
"Good Reason" made by the Executive shall be conclusive.

         (r) "Incumbent Board" shall have the meaning set forth in Section
1(g)(ii).

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         (s) "Most Recent Annual Bonus" shall have the meaning set forth in
Section 4(a)(i)(A)(2)(x).

         (t) "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination is other than
the date of receipt of such notice, specifies the termination date (which date
shall be not more than 30 days after the giving of such notice). The failure by
the Executive or RBMG to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or RBMG, respectively, hereunder or preclude
the Executive or RBMG, respectively, from asserting such fact or circumstance in
enforcing the Executive's or RBMG's rights hereunder.

         (u) "Outstanding RBMG Common Stock" shall have the meaning set forth in
Section 1(g)(i).

         (v) "Outstanding RBMG Voting Securities" shall have the meaning set
forth in Section 1(g)(i).

         (w) "Payment" shall have the meaning set forth in Section 4(c).

         (x) "Person" shall have the meaning set forth in Section 1(g)(i).

         (y) "RBMG" shall have the meaning set forth in the recitals to this
Agreement.

         2. Termination for Cause or Good Reason; Notice of Termination. RBMG
may terminate the Executive's employment with the Company during the Change of
Control Period for Cause and the Executive may terminate employment during the
Change of Control Period for Good Reason. Any termination by RBMG for Cause, or
by the Executive for Good Reason, shall be communicated by Notice of Termination
to the other party hereto in accordance with Section 9(b) of this Agreement.

         3. Termination by Reason of Death or Disability. The Executive's
employment shall terminate automatically upon the Executive's death. If RBMG
determines in good faith during the Change of Control Period that the Disability
of the Executive has occurred, it may give to the Executive written notice in
accordance with Section 9(b) of its intention to terminate the Executive's
employment. In such event, the Executive's employment with the Company shall
terminate effective on the 30th day after receipt of such notice by the
Executive (the "Disability Effective Date"), provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties.

         4. Obligations of RBMG upon Termination. (a) Good Reason; Without
Cause; Death or Disability. If, during the Change of Control Period, RBMG shall
terminate the Executive's employment without Cause, the Executive shall
terminate employment for Good

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Reason or the Executive's employment terminates for death or Disability, and
subject to the limitation set forth in Section 4(c):

                  (i) RBMG shall pay to the Executive in a lump sum in cash
within 30 days after the Date of Termination the aggregate of the following
amounts:

                  A. the sum of (1) the Executive's Annual Base Salary through
the Date of Termination to the extent not theretofore paid and (2) the product
of (x) the Executive's annual bonus paid or payable, including any bonus or
portion thereof which has been earned but deferred, (and annualized for any
fiscal year consisting of less than twelve full months or during which the
Executive was employed for less than twelve full months) for the most recently
completed fiscal year, if any (the "Most Recent Annual Bonus") and (y) a
fraction, the numerator of which is the number of days in the current fiscal
year through the Date of Termination, and the denominator of which is 365;
provided, that, such amount shall not be paid if duplicative of any amounts
payable under the Company's annual incentive plans, and (3) any compensation
previously deferred by the Executive (together with any accrued interest or
earnings thereon) and any unused annual vacation pay, in each case to the extent
not theretofore paid; and

                  B. an amount equal to the sum of (1) the Executive's Annual
Base Salary and (2) the lesser of (I) the Executive's Most Recent Annual Bonus
or (II) $100,000; and

                  (ii) RBMG shall provide medical, dental and vision insurance
coverage for the Executive and his current spouse and eligible dependents until
the first to occur of (A) the first anniversary of the Date of Termination or
(B) the death of the Executive and his spouse, that is comparable to the most
favorable medical, dental and vision insurance coverage provided by the Company
for the Executive (and such spouse and dependents) during the 120-day period
immediately prior to the Change of Control, with the Executive (or such spouse)
continuing to pay the employee portion of the premiums for such coverage (in the
same pro rata amount as during the 120-day period prior to the Change of
Control).

         (b) Cause; Without Good Reason. If the Executive's employment shall be
terminated for Cause during the Change of Control Period or if the Executive
voluntarily terminates employment during the Change of Control Period without
Good Reason, this Agreement shall terminate without further obligation to the
Executive other than the obligation to pay to the Executive (i) his Annual Base
Salary through the Date of Termination, and (ii) the amount of any compensation
previously deferred by the Executive.

         (c) Notwithstanding anything in this Agreement to the contrary, if it
shall be determined that any payment or distribution by the Company to or for
the benefit of the Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise) (a
"Payment") would constitute an "excess parachute payment" within the meaning of
Section 280G of the Code, then the Payments, in the aggregate, shall be reduced
(in a manner elected by the Executive, or by RBMG if the Executive fails to make
such an election) to the greatest amount that could be paid to the Executive
such that the receipt of Payments would not constitute an "excess parachute
payment."

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         5. Non-exclusivity of Rights. Subject to the limitation set forth in
Section 4(c), nothing in this Agreement shall prevent or limit the Executive's
continuing or future participation in any pension, profit sharing, 401(k),
supplemental executive retirement or stock option plan provided by the Company
and for which the Executive may qualify, nor, subject to Section 9(f), shall
anything herein limit or otherwise affect such rights as the Executive may have
under any contract or agreement with the Company. Amounts which are vested
benefits or which the Executive is otherwise entitled to receive under any
pension, profit sharing, 401(k), supplemental executive retirement or stock
option plan or any contract or agreement with the Company at or subsequent to
the Date of Termination shall be payable in accordance with such plan or
contract or agreement except as explicitly modified by this Agreement.

         6. Full Settlement. RBMG's obligation to make the payments provided for
in this Agreement and otherwise to perform its obligations hereunder shall not
be affected by any set-off, counterclaim, recoupment, defense or other claim,
right or action which the Company may have against the Executive or others. In
no event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and such amounts shall not be reduced
whether or not the Executive obtains other employment. RBMG agrees to pay as
incurred, to the full extent permitted by law, all legal fees and expenses which
the Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by RBMG, the Executive or others of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (including as a result of any contest by the
Executive about the amount of any payment pursuant to this Agreement), plus in
each case interest on any delayed payment at the applicable Federal rate
provided for in Section 7872(f)(2)(A) of the Code ( the "AFR"). The Executive
shall repay (with interest at the AFR) any such advanced legal fees and expenses
in the event a court determines that the Executive's claim or action was in bad
faith.

         7. Confidential Information. (a) The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company which shall have been
obtained by the Executive during the Executive's employment by the Company and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement).
After termination of the Executive's employment with the Company, the Executive
shall not, without the prior written consent of RBMG or as may otherwise 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 RBMG.
In no event shall an asserted violation of the provisions of this Section 7
constitute a basis for deferring or withholding any amounts otherwise payable to
the Executive under this Agreement.

         (b) The Executive agrees and acknowledges that a violation of the
covenants contained in this Section 7 will cause irreparable damage to the
Company, and that it is and will be impossible to estimate or determine the
damage that will be suffered by the Company in the event of a breach by the
Executive of any such covenant. Therefore, the Executive further agrees that in
the event of any violation or threatened violation of such covenants, the
Company shall be entitled as a matter of course to an injunction issued by any
court of competent jurisdiction

                                       7

<PAGE>   8

restraining such violation or threatened violation by the Executive, such right
to an injunction to be cumulative and in addition to whatever other remedies the
Company may have.

         8. Successors. (a) This Agreement is personal to the Executive and
without the prior written consent of RBMG shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

         (b) This Agreement shall inure to the benefit of and be binding upon
RBMG and its successors and assigns.

         (c) RBMG will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of RBMG to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that RBMG would be required
to perform it if no such succession had taken place. As used in this Agreement,
"RBMG" shall mean RBMG as hereinbefore defined and any successor to its business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

         9. Miscellaneous. (a) This Agreement shall be governed by and construed
in accordance with the laws of the State of South Carolina, without reference to
principles of conflict of laws. The captions of this Agreement are not part of
the provisions hereof and shall have no force or effect. This Agreement may not
be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

         (b) All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

         If to the Executive:

                  Steven F. Herbert
                  ________________________________________
                  ________________________________________

         If to RBMG:

                  Resource Bancshares Mortgage Group, Inc.
                  7909 Parklane Road
                  Columbia, SC  29223
                  Attention:  Chief Executive Officer

                                       8

<PAGE>   9

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

         (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

         (d) RBMG may withhold from any amounts payable under this Agreement
such Federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

         (e) The Executive's or RBMG's failure to insist upon strict compliance
with any provision of this Agreement or the failure to assert any right the
Executive or RBMG may have hereunder, including, without limitation, the right
of the Executive to terminate employment for Good Reason pursuant to Section 2,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

         (f) The Executive and RBMG acknowledge that, except as may otherwise be
provided under any other written agreement between the Executive and the
Company, the employment of the Executive by the Company is "at will" and,
subject to Section 1(n), the Executive's employment may be terminated by either
the Executive or the Company at any time prior to the Effective Date, in which
case the Executive shall have no further rights under this Agreement. This
Agreement shall supersede any other agreement between the parties with respect
to the subject matter hereof.

         (g) This Agreement shall terminate and be of no further force or effect
if a Change of Control does not occur on or before December 31, 2001.

         IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from its Board of Directors, RBMG has caused
these presents to be executed in its name on its behalf, all as of the day and
year first above written.

                                         _______________________________________
                                                    Steven F. Herbert

                                         RESOURCE BANCSHARES MORTGAGE
                                           GROUP, INC.

                                         By_____________________________________
                                               Douglas K. Freeman
                                               Chief Executive Officer

                                       9

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