Document:

Exhibit 10.1.1

      WHEREAS,  the board of directors of the corporation  deems it advisable to
increase the number of shares of common stock available under the  corporation's
Incentive Stock Compensation Plan;

      BE IT:

      RESOLVED,  that the  number of shares  available  under the Plan  shall be
increased from 7,500,000 to 9,000,000; and further

      RESOLVED,  that  section  1.3(a) of the Plan is hereby  deleted  and a new
section 1.3(a) is inserted in lieu thereof, as follows:

      (a)   The number of shares of Common Stock with  respect to which  Options
            and Restricted Stock Awards may be granted shall be 9,000,000 shares
            of Common Stock, subject to Section 3.1 and subject to adjustment in
            accordance with the remaining provisions of this Section 1.3 and the
            provisions of Section 4.1.

      and further,

      RESOLVED,   that  the  foregoing  amendment  shall  be  presented  to  the
stockholders of the corporation for approval at its annual meeting to be held on
March 24, 2000.

                                    Signed _______________________

                                           Greg L. Lee
                                           Chairman of the Board of DirectorsExhibit 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

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