Document:

Exhibit 10.1

                          NEXITY FINANCIAL CORPORATION
                        INCENTIVE STOCK COMPENSATION PLAN

                                    ARTICLE I
                  PURPOSE, SCOPE AND ADMINISTRATION OF THE PLAN

1.1   Purpose

      The purpose of the Plan is to promote the long-term success of the Company
      by providing  financial  incentives  to employees and directors who are in
      positions to make significant  contributions toward such success. The Plan
      is designed to attract  individuals of  outstanding  ability to employment
      with the Company,  to serve as directors of the Company,  and to encourage
      such persons to acquire a proprietary interest in the Company, and thereby
      to render superior performance for the Company.

1.2   Definitions

      Unless the context clearly indicates otherwise,  for purposes of this Plan
      the following terms have the respective meanings set forth below:

      (a)   "Board  of  Directors"  means  the  Board  of  Directors  of  Nexity
            Financial Corporation

      (b)   "Code" means the Internal Revenue Code of 1986, as amended.

      (c)   "Committee"  means  the  Compensation  Committee  of  the  Board  of
            Directors  (or any successor  committee  thereto),  which  committee
            shall be  composed  of not less  than two  members  of the  Board of
            Directors.

      (d)   "Common Stock" means the common stock of the Company, par value $.01
            per share,  or such  other  class of shares or other  securities  to
            which the  provisions of the Plan may be applicable by reason of the
            operation of Section 4.1 hereof.

      (e)   "Company" means Nexity Financial  Corporation and its majority owned
            subsidiaries including subsidiaries which become such after the date
            of adoption of this Plan.

      (f)   "Fair  Market  Value" of a share of Common  Stock on any  particular
            date means the average between the bid and ask prices quoted on such
            date by the National  Daily  Quotation  Service,  or on the National
            Association of Securities  Dealers  Automated  Quotation  ("NASDAQ")
            System or a registered  securities  exchange,  if listed thereon. In
            the event that both bid and ask  prices are not so quoted,  then the
            Fair Market Value shall be the bid price  determined by the National
            Association of Securities  Dealers,  Inc.  ("NASD") local quotations
            committee as most recently published in a daily newspaper of general
            circulation in Jefferson County,  Alabama. In the event that no such
            bid price is  published,  then Fair  Market  Value shall be the fair
            market value as determined by the Board of Directors.

      (g)   "Grant  Date,"  as used  with  respect  to a  particular  Option  or
            Restricted Stock Award means the date as of which such Option, right
            or award is granted by the Committee pursuant to the Plan.

      (h)   "Grantee"  means the  person to whom an Option or  Restricted  Stock
            Award is granted by the Committee pursuant to the Plan.

      (i)   "Incentive  Stock  Option"  means an  Option  that  qualifies  as an
            incentive stock option as described in Section 422(b) of the Code.

<PAGE>

      (j)   "Option"  means an  option  granted  by the  Committee  pursuant  to
            Article  II to  purchase  shares of  Common  Stock,  which  shall be
            designated at the time of grant as either an Incentive  Stock Option
            or a Supplemental Stock Option, as provided in Section 2.1 hereof.

      (k)   "Option  Agreement"  means the  agreement  between the Company and a
            Grantee under which the Grantee is granted an Option pursuant to the
            Plan.

      (l)   "Option Period" means the period fixed by the Committee during which
            an Option may be exercised,  provided that no Incentive Stock Option
            shall, under any  circumstances,  be exercisable more than ten years
            after the Grant Date.

      (m)   "Plan"  means  the  Nexity  Financial  Corporation  Incentive  Stock
            Compensation  Plan as set forth  herein and as amended  from time to
            time.

      (n)   "Restricted Stock Agreement" means the agreement between the Company
            and a Grantee under which the Grantee is granted a Restricted  Stock
            Award pursuant to the Plan.

      (o)   "Restricted  Stock  Award"  means an award of Common  Stock which is
            granted  by the  Committee  pursuant  to  Article  III and  which is
            restricted  against  sale or other  transfer  in a manner  and for a
            specified period of time determined by the Committee.

      (p)   "Restriction  Period" means,  with respect to any  Restricted  Stock
            Award granted hereunder,  the period beginning on the Grant Date and
            ending at such time as the Committee, in its sole discretion,  shall
            determine  and  during  which  the  shares of  Restricted  Stock are
            subject to forfeiture,  provided that after the period is determined
            by the  Committee,  it may,  in its sole  discretion,  lengthen  the
            period by as much as one calendar month or shorten it to any extent.

      (q)   "Retirement,"   as  applied  to  a  Grantee,   means  the  Grantee's
            termination of employment in a manner which qualifies the Grantee to
            receive immediately payable retirement benefits under any retirement
            plan  hereafter  adopted by the Company,  or which in the absence of
            any  such   retirement  plan  is  determined  by  the  Committee  to
            constitute retirement.

      (r)   "Supplemental  Stock  Option"  means any Option  granted  under this
            Plan, other than an Incentive Stock Option.

      (s)   "Total and  Permanent  Disability,"  as applied to a Grantee,  means
            that the  Grantee (1) has  established  to the  satisfaction  of the
            Committee  that the  Grantee is unable to engage in any  substantial
            gainful activity by reason of any medically determinable physical or
            mental  impairment  which can be expected  to last for a  continuous
            period of not less than 12 months (all within the meaning of Section
            22(e)(3) of the Code), and (2) has satisfied any requirement imposed
            by the Committee in regard to evidence of such disability.

1.3   Shares Available Under the Plan

      (a)   The number of shares of Common Stock with  respect to which  Options
            and Restricted Stock Awards may be granted shall be 7,500,000 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.

      (b)   In the event that any Option expires or otherwise  terminates  prior
            to  being  fully  exercised,   or  any  Restricted  Stock  Award  is
            forfeited,  the  Committee  may,  without  decreasing  the number of
            shares  authorized  above in this Section 1.3, grant new Options and
            Restricted  Stock Awards  hereunder to any eligible  Grantee for the
            shares with  respect to which the expired or  terminated  Option was
            not

                                       2
<PAGE>

            exercised or which were  forfeited  when the terms and conditions of
            the Restricted Stock Award were not satisfied.

      (c)   Any shares of Common  Stock to be  delivered by the Company upon the
            grant of Restricted  Stock Awards or the exercise of Options may, at
            the  discretion  of the  Board  of  Directors,  be  issued  from the
            Company's  authorized  but  unissued  shares of  Common  Stock or be
            transferred from any available treasury stock.

1.4   Administration of the Plan

      (a)   Except as provided in Section 1.4(c), the Plan shall be administered
            by the Committee which shall have the authority:

            (1)   To determine  those  persons to whom,  and the times at which,
                  Options  and/or  Restricted  Stock Awards shall be granted and
                  the  number of shares of Common  Stock to be  subject  to each
                  such Option and/or award, taking into consideration the nature
                  of the  services  rendered  by the  particular  employee,  the
                  employee's potential  contribution to the long term success of
                  the Company  and such other  factors as the  Committee  in its
                  discretion shall deem relevant;

            (2)   To interpret  and construe the  provisions  of the Plan and to
                  establish rules and regulations relating to it;

            (3)   To prescribe the terms and conditions of the Option Agreements
                  for the grant of  Options  (which  need not be  identical)  in
                  accordance and consistent  with the  requirements  of the Plan
                  including the provision in Section 1.2(1) allowing adjustments
                  to  the  duration  of  the  Option  Period  after  the  Option
                  Agreement has been entered into;

            (4)   To prescribe the terms and conditions of the Restricted  Stock
                  Agreements  (which need not be identical)  in  accordance  and
                  consistent  with the  requirements  of the Plan  including the
                  provision  in  Section  1.2(1)  allowing  adjustments  to  the
                  duration of the Restriction  Period after the Restricted Stock
                  Agreement has been entered into; and

            (5)   To make all other  determinations  necessary  or  advisable to
                  administer the Plan in a proper and effective manner.

      (b)   All   decisions   and   determinations   of  the  Committee  in  the
            administration  of the  Plan  and in  response  to  questions  or in
            connection  with other matters  concerning the Plan or any Option or
            Restricted  Stock  Award  shall  (whether  or not so  stated  in the
            particular instance in the Plan) be final, conclusive and binding on
            all  persons,  including,   without  limitation,  the  Company,  the
            shareholders and directors of the Company and any persons having any
            interest  in any Options or  Restricted  Stock  Awards  which may be
            granted under the Plan.

      (c)   In all cases in this Plan in which the  Committee is  authorized  or
            directed  to take  action,  such action may be taken by the Board of
            Directors  as a whole.  It is the  intention  of this  Plan that the
            Committee may be appointed by the Board of Directors for convenience
            and efficiency of administration.

1.5   Eligibility for Awards

      The  Committee  shall  designate  from  time to  time  the  employees  and
      directors of the Company who are to be granted  Options and/or  Restricted
      Stock  Awards.  All salaried  employees  and  directors of the Company are
      eligible to participate.

                                       3
<PAGE>

1.6   Effective Date of Plan

      Subject to the  receipt of all  required  regulatory  approvals,  the Plan
      shall  become  effective  upon its  adoption  by the  Board of  Directors,
      provided  that any grant of Options or  Restricted  Stock Awards under the
      Plan prior to approval of the Plan by the  shareholders  of the Company is
      subject to such  shareholder  approval within twelve months of adoption of
      the Plan by the Board of Directors.

                                   ARTICLE II
                                  STOCK OPTIONS

2.1   Grant of Options

      (a)   The  Committee may from time to time,  subject to the  provisions of
            the Plan, grant Options to employees or directors under  appropriate
            Option Agreements to purchase shares of Common Stock.

      (b)   The  Committee   may  designate  any  Option  which   satisfies  the
            requirements  of Section 2.3 hereof as an Incentive Stock Option and
            may designate any Option granted  hereunder as a Supplemental  Stock
            Option,  or the Committee may designate a portion of an Option as an
            Incentive  Stock  Option  (so  long as that  portion  satisfies  the
            requirements  of Section 2.3 hereof) and the remaining  portion as a
            Supplemental  Stock  Option.  Any  portion of an Option  that is not
            designated  as an Incentive  Stock  Option  shall be a  Supplemental
            Stock  Option.   A  Supplemental   Stock  Option  must  satisfy  the
            requirements of Section 2.2 hereof,  but shall not be subject to the
            requirements of Section 2.3.

2.2   Option Requirements

      (a)   An Option shall be evidenced by an Option  Agreement  specifying the
            number  of shares of Common  Stock  that may be  purchased  upon its
            exercise and containing  such terms and conditions not  inconsistent
            with the  Plan and  based on such  factors  as the  Committee  shall
            determine,  in  its  sole  discretion,  to  be  applicable  to  that
            particular Option.

      (b)   An Option shall be  exercisable at such time or times and subject to
            such terms and  conditions  as shall be  determined by the Committee
            and  stated in the  Option  Agreement;  provided,  however,  that an
            Option shall  become  immediately  exercisable  upon the death of an
            employee  or upon  employment  with the Company  ceasing  because of
            Total and Permanent Disability or upon the application of any change
            in  control   provisions  which  may  be  contained  in  the  Option
            Agreement.  If the Committee provides that any Option is exercisable
            only in  installments  or provides other vesting  requirements,  the
            Committee  may waive  such  provisions  at any time,  in whole or in
            part,  based on such  factors as the  Committee  shall,  in its sole
            discretion, determine.

      (c)   An Option shall expire by its terms at the  expiration of the Option
            Period and shall not be exercisable thereafter;  provided,  however,
            that an Option may be  exercised  immediately  upon the death of the
            Grantee  and for a period  of up to 365 days  after the death of the
            Grantee  despite  the  expiration  during  that  time of the  Option
            Period, except that an Incentive Stock Option can never be exercised
            more than 10 years after its Grant Date.

      (d)   The Committee may provide in the Option Agreement for the expiration
            or  termination  of the Option prior to the expiration of the Option
            Period, upon the occurrence of any event specified by the Committee.

                                       4
<PAGE>

      (e)   The option  price per share of Common Stock shall be  determined  by
            the  Committee  at the time of grant but shall be not less than 100%
            of the Fair  Market  Value of a share of  Common  Stock on the Grant
            Date.

      (f)   An Option shall not be  transferable  other than by will or the laws
            of descent and distribution and, during the Grantee's  lifetime,  an
            Option shall be exercisable  only by the Grantee,  or if the Grantee
            is disabled and the Option remains  exercisable,  by his or her duly
            appointed guardian or other legal representative.

      (g)   An Option,  to the extent that it has not previously been exercised,
            shall  terminate upon the earliest to occur of (1) the expiration of
            the  applicable  Option Period as set forth in the Option  Agreement
            granting  such  Option,  (2) the  expiration  of 90 days  after  the
            Grantee's  Retirement,  (3) the  expiration  of one year  after  the
            Grantee  ceases to be an  employee or director of the Company due to
            Total and Permanent  Disability,  (4) subject to the  application of
            the  provisions of subsection  (c) above the  expiration of one year
            after  the  Grantee  ceases to be an  employee  or  director  of the
            Company  due to the death of the  Grantee,  or (5) thirty days after
            the date on which a Grantee  ceases to be an employee or director of
            the  Company  for  any  reason  other  than  Retirement,  Total  and
            Permanent  Disability or death, unless the Option Agreement provides
            for earlier termination.

      (h)   A person electing to exercise an Option shall give written notice of
            such  election to the  Company,  in such form as the  Committee  may
            require,  accompanied  by payment in cash or in such other manner as
            may be approved by the Committee,  of the full purchase price of the
            shares of Common Stock for which the election is made. As determined
            by the Committee,  in its sole  discretion,  whether before or after
            the Grant  Date,  payment in full or in part may be made in the form
            of unrestricted  Common Stock already owned by the Grantee or in the
            form of Restricted  Stock which is the subject of a Restricted Stock
            Award under the Plan or in the form of a  withholding  of sufficient
            shares of Common Stock  otherwise  issuable upon the exercise of the
            Option to constitute  payment of the purchase  price based,  in each
            case,  on the Fair Market  Value of the Common Stock on the date the
            Option is exercised;  provided that an election to make such payment
            in Common Stock or  Restricted  Stock or to have shares so withheld,
            in addition to being subject to the approval of the Committee, shall
            be irrevocable. If payment of the purchase price is made in whole or
            in part in the form of Restricted  Stock, a replacement  certificate
            for the  number  of  shares  of  Restricted  Stock  used to make the
            purchase  shall be issued  from the  shares  of  Common  Stock to be
            issued as a result of the  exercise  of the  Option  and the  shares
            represented by the  replacement  certificate  shall be restricted in
            accordance   with  the  original  terms  of  the  Restricted   Stock
            Agreement.

            Further,  upon written request and  authorization of the Grantee and
            to the extent  permitted by applicable  law, the Committee may allow
            arrangements  whereby an Option may be  exercised  and the  exercise
            price (together with any tax withholding obligations of the Grantee)
            paid pursuant to  arrangements  with brokerage firms permitted under
            Regulation T of the Board of Governors of the Federal Reserve System
            (or successor  regulations or statutes).  In no event,  however, may
            such  transaction  or  arrangement  take place if a violation by the
            Grantee  of the  provisions  of  Section  16(b)  of  the  Securities
            Exchange Act of 1934 ("Section 16(b)"), if applicable,  would result
            therefrom.

2.3   Incentive Stock Option Requirements

      (a)   An Option  designated by the Committee as an Incentive  Stock Option
            is intended to qualify as an  "incentive  stock  option"  within the
            meaning of Section 422(b) of the Code and shall satisfy, in addition
            to the conditions of Section 2.2 above,  the conditions set forth in
            this Section 2.3.

                                       5
<PAGE>

      (b)   An Incentive Stock Option shall not be granted to an individual who,
            on the Grant Date,  owns stock  possessing  more than ten percent of
            the  total  combined  voting  power of all  classes  of stock of the
            Company,  unless the Committee provides in the Option Agreement with
            any such  individual that the option price per share of Common Stock
            will not be less  than 110% of the Fair  Market  Value of a share of
            Common  Stock on the Grant Date and that the Option  Period will not
            extend beyond five years from the Grant Date.

      (c)   The aggregate  Fair Market  Value,  determined on the Grant Date, of
            the shares of Common Stock as to which  Incentive  Stock Options are
            exercisable  for the first time by any Grantee  with  respect to the
            Plan and  incentive  stock  options  (within  the meaning of Section
            422(b) of the  Code)  under any  other  plan of the  Company  or any
            parent or subsidiary  thereof, in any calendar year shall not exceed
            $100,000.00.  To the extent that the aggregate  Fair Market Value of
            Common  Stock with  respect to which  Incentive  Stock  Options  are
            exercisable for the first time by an individual  during any calendar
            year under all incentive  stock option plans of the Company  exceeds
            $100,000  (within  the  meaning  of Section  422 of the Code),  such
            excess  Incentive Stock Options shall be treated as Options which do
            not constitute Incentive Stock Options. The Board of Directors shall
            determine,  in accordance  with  applicable  provisions of the Code,
            Treasury regulations and other administrative pronouncements,  which
            of  an  Optionee's  Incentive  Stock  Options  will  not  constitute
            Incentive  Stock Options because of such limitation and shall notify
            the Optionee of such determination as soon as practicable after such
            determination.

                                   ARTICLE III
                             RESTRICTED STOCK AWARDS

3.1   Grant of Awards

            The Committee  may, from time to time,  subject to the provisions of
            the Plan,  grant  Restricted  Stock  Awards to key  employees  under
            appropriate Restricted Stock Agreements.  The total number of shares
            of Common Stock which may be issued as Restricted Stock Awards under
            the plan may not exceed 500,000 shares.

3.2   Award Requirements

      (a)   An  award  shall  be  evidenced  by  a  Restricted  Stock  Agreement
            specifying the number of shares of Common Stock that are awarded and
            containing such terms and conditions not inconsistent  with the Plan
            as the Committee shall determine to be applicable to that particular
            award,  which  agreement  shall  contain in  substance  at least the
            following terms and conditions:

            (1)   Shares  awarded  pursuant to Restricted  Stock Awards shall be
                  subject to such conditions, terms and restrictions (including,
                  for example,  continuation  of  employment in the same or in a
                  higher  level  position)  and for such  Restriction  Period or
                  Periods  (including the lapse of restrictions in installments)
                  as may be determined by the Committee.

            (2)   Shares  awarded,  and the  right to vote  such  shares  and to
                  receive  dividends  thereon,   may  not  be  sold,   assigned,
                  transferred,  exchanged,  pledged,  hypothecated, or otherwise
                  encumbered,  except as herein  provided  for use in paying the
                  purchase  price  required to exercise  Options  under  Section
                  2.2(h) or otherwise,  during the Restriction Period applicable
                  to such shares;  provided, that the Grantee awarded Restricted
                  Stock  shall  have the  right to  execute  a proxy to vote the
                  Restricted Stock. Notwithstanding the foregoing, and except as
                  otherwise  provided in the Plan, a Grantee awarded  Restricted
                  Stock  shall  have  all the  other  rights  of a  stockholder,
                  including the right to receive dividends and the right to vote
                  such shares.

                                       6
<PAGE>

            (3)   Each certificate  issued in respect of Common Stock awarded to
                  a  Grantee  shall  be  deposited  with  the  Company,  or  its
                  designee,  or in the Committee's  discretion  delivered to the
                  Grantee,  and shall  bear an  appropriate  legend  noting  the
                  existence  of  restrictions  upon the  transfer of such Common
                  Stock.

            (4)   The  Restricted  Stock  Agreement  shall specify the terms and
                  conditions  upon which any  restrictions  upon shares  awarded
                  under the Plan shall lapse,  as  determined  by the  Committee
                  (including,  for example,  employment  in the same or a higher
                  level  position  at  the  end  of the  Restriction  Period  or
                  occurrence of a change in control, as defined by the Committee
                  from time to time, during the Restriction Period).  Upon lapse
                  of such  restrictions,  certificates  representing  shares  of
                  Common Stock free of any restrictive legend, other than as may
                  be  required  under  Article  IV  hereof,  shall be issued and
                  delivered to the Grantee or his legal representative.

      (b)   If a Grantee's employment  terminates during a Restriction Period as
            a result  of death of the  Grantee,  all  restrictions  upon  shares
            awarded under the Plan shall lapse and the certificates representing
            shares awarded as a Restricted Stock Award,  free of any restrictive
            legend other than as may be required under Article IV hereof,  shall
            be issued and delivered to the Grantee's legal representative.  If a
            Grantee's  employment  terminates  during a Restriction  Period as a
            result of Retirement or Total and Permanent Disability the Committee
            shall  in  its  sole  discretion   determine  the  extent  to  which
            restrictions  shall be deemed to have lapsed,  which may include the
            determination  that all  restrictions  shall have lapsed,  but in no
            event  shall the  Committee  determine  that the  restrictions  have
            lapsed to a lesser  extent than is  determined  by  multiplying  the
            amount of the Restricted Stock Award by a fraction, the numerator of
            which is the  full  number  of  calendar  months  such  Grantee  was
            employed during the Restriction  Period and the denominator of which
            is the total  number  of full  calendar  months  in the  Restriction
            Period.  If a Grantee's  employment  terminates for any reason other
            than as described in the preceding two sentences,  the Grantee shall
            be deemed not to have satisfied the restrictions associated with the
            Restricted Stock Award unless the Committee  determines otherwise in
            its sole discretion (in which event the extent to which restrictions
            will be deemed to have lapsed shall not exceed the amount determined
            pursuant to the formula set forth in the preceding sentence).

                                   ARTICLE IV
                               GENERAL PROVISIONS

4.1   Adjustment Provisions

      (a)   In the event of (1) any dividend  payable in shares of Common Stock;
            (2)   any    recapitalization,    reclassification,    split-up   or
            consolidation  of, or other change in, the Common  Stock;  or (3) an
            exchange of the  outstanding  shares of Common Stock,  in connection
            with a merger, consolidation or other reorganization of or involving
            the  Company  or a sale by the  Company  of all or a portion  of its
            assets,  for a different number or class of shares of stock or other
            securities  of the  Company  or for  shares  of the  stock  or other
            securities of any other  corporation  (whether issued to the Company
            or to its  shareholders);  the  number of  shares  of  Common  Stock
            available  under the Plan  pursuant to Section 1.3 shall be adjusted
            to  appropriately  reflect the occurrence of the event  specified in
            clauses  (1),  (2) or (3) above  and the  Committee  shall,  in such
            manner as it shall determine in its sole  discretion,  appropriately
            adjust  the  number  and class of shares or other  securities  which
            shall be subject to Options and  Restricted  Stock Awards and/or the
            purchase price per share which must be paid thereafter upon exercise
            of any Option.  Any such  adjustments made by the Committee shall be
            final, conclusive and binding upon all persons,  including,  without
            limitation,  the  Company,  the  shareholders  and  directors of the
            Company  and any  persons  having  any  interest  in any  Options or
            Restricted Stock Awards which may be granted under the Plan.

                                       7
<PAGE>

      (b)   Except as provided in paragraph (a) immediately  above,  issuance by
            the  Company  of  shares  of  stock  of  any  class  or   securities
            convertible  into  shares of stock of any class shall not affect the
            Options or Restricted Stock Awards.

4.2   Additional Conditions

      (a)   Any shares of Common Stock issued or transferred under any provision
            of the Plan may be issued or transferred subject to such conditions,
            in  addition  to those  specifically  provided  in the Plan,  as the
            Committee or the Company may impose.

      (b)   If  prior to the time a  Grantee  has  exercised  all  Options,  the
            Committee or the  Corporate  Secretary of the Company  receives from
            the Company  notice of suspected  dishonesty  of the Grantee,  or of
            suspected  conduct by the Grantee which causes or reasonably  may be
            expected to cause  substantial  damage to the Company or one or more
            of its  subsidiaries,  each  Option,  to the extent  not  previously
            exercised,  shall terminate  immediately and neither the Grantee nor
            any one claiming under him shall have any rights thereto.

4.3   No Rights as Shareholder or to Employment

      No Grantee or any other person  authorized  to purchase  Common Stock upon
      exercise of an Option  shall have any  interest in or  shareholder  rights
      with respect to any shares of Common Stock which are subject to any Option
      until such  shares have been  issued and  delivered  to the Grantee or any
      such person pursuant to the exercise of such Option. Furthermore, the Plan
      shall not  confer  upon any  Grantee  any  rights of  employment  with the
      Company,  including without limitation any right to continue in the employ
      of the  Company,  or affect  the right of the  Company  to  terminate  the
      employment of a Grantee at any time, with or without cause.

4.4   General Restrictions

      Each award under the Plan shall be subject to the requirement  that, if at
      any time the Committee shall determine that (a) the listing,  registration
      or  qualification of the shares of Common Stock subject or related thereto
      upon any securities exchange or under any state or federal law, or (b) the
      consent or approval of any government regulatory body, or (c) an agreement
      by the recipient of an award with respect to the  disposition of shares of
      Common  Stock,  is  necessary  or  desirable  as a  condition  of,  or  in
      connection  with,  the  granting of such award or the issue or purchase of
      shares of Common Stock  thereunder,  such award may not be  consummated in
      whole  or  in  part  unless  such  listing,  registration,  qualification,
      consent,  approval or agreement  shall have been effected or obtained free
      of any conditions not  acceptable to the  Committee.  A participant  shall
      agree,  as a condition of receiving  any award under the Plan,  to execute
      any documents,  make any  representations,  agree to restrictions on stock
      transferability and take any actions which in the opinion of legal counsel
      to the Company are required by any applicable  law,  ruling or regulation.
      The Company is in no event  obligated  to  register  any such  shares,  to
      comply with any exemption from  registration  requirements  or to take any
      other  action  which may be required  in order to permit,  or to remedy or
      remove any  prohibition  or  limitation  on, the  issuance or sale of such
      shares to any Grantee or other authorized person.

4.5   Rights Unaffected

      The existence of the Options and Restricted Stock Awards shall not affect:
      the right or power of the Company or its shareholders to make adjustments,
      recapitalizations,  reorganizations  or  other  changes  in the  Company's
      capital  structure  or its  business;  any  issue  of  bonds,  debentures,
      preferred or prior  preference  stocks  affecting  the Common Stock or the
      rights thereof; the dissolution or liquidation of the Company, or

                                       8
<PAGE>

      sale or  transfer  of any part of its  assets  or  business;  or any other
      corporate act, whether of a similar character or otherwise.

      (a)   As a condition of grant,  exercise or lapse of  restrictions  on any
            Option or  Restricted  Stock  Award,  the  Company  may, in its sole
            discretion,  withhold or require the Grantee to pay or reimburse the
            Company for any taxes which the Company  determines  are required to
            be withheld (including, without limitation, any required FICA or AMT
            payments),  in connection with the grant of or lapse of restrictions
            on a  Restricted  Stock Award or the grant of or any  exercise of an
            Option.  Whenever  payment or withholding of such taxes is required,
            the  Grantee may satisfy  the  obligation,  in whole or in part,  by
            electing to deliver to the Company  shares of Common  Stock  already
            owned by the Grantee or electing to have the Company withhold shares
            of Common  Stock which would  otherwise be delivered to the Grantee,
            in each  case  having a value  equal to the  amount  required  to be
            withheld,  and provided that such shares may be surrendered  only at
            the minimum  statutory  rate. For these  purposes,  the value of the
            shares to be withheld is the Fair Market  Value on the date that the
            amount of tax to be withheld is to be determined (the "Tax Date").

      (b)   An election by a Grantee to deliver  shares of Common Stock  already
            owned by the  Grantee or to have  shares  withheld  for  purposes of
            subsection  (a) of  this  section  (an  "Election")  must  meet  the
            following requirements in order to be effective:

            (1)   the Election must be made prior to the Tax Date;

            (2)   the Election is irrevocable; and

            (3)   the Election may be  disapproved  by the Committee in its sole
                  discretion.

4.6   Choice of Law

      The validity,  interpretation  and  administration of the Plan, the Option
      Agreement,  the Restricted Stock Agreement and of any rules,  regulations,
      determinations or decisions made thereunder, and the rights of any and all
      persons  having or claiming to have any  interest  therein or  thereunder,
      shall be determined  exclusively in accordance  with the laws of the State
      of Alabama,  except as the Delaware  General  Corporation Law may apply to
      corporate law requirements imposed on the Plan.

      Without limiting the generality of the foregoing,  the period within which
      any action in connection with the Plan must be commenced shall be governed
      by the Laws of the State of Alabama, without regard to the place where the
      act or omission  complained  of took place,  the residence of any party to
      such action or the place where the action may be brought or maintained.

4.7   Amendment, Suspension and Termination or Plan.

      (a)   The Plan may be terminated, suspended or amended, from time to time,
            by the  Board  of  Directors  in  such  respects  as it  shall  deem
            advisable; provided, however, that (i) any such amendment that would
            require shareholder approval in order to ensure compliance with Rule
            16b-3 under the  Securities  Exchange Act of 1934,  or any successor
            rule thereto, or any other applicable rules or regulations, shall be
            subject to approval by the  shareholders of the Company and (ii) any
            amendment that would change the maximum  aggregate  number of shares
            for which Options and  Restricted  Stock Awards may be granted under
            the Plan  (except as  required  under any  adjustments  pursuant  to
            Sections  1.3 and 4.1  hereof)  shall be subject to  approval of the
            shareholders of the Company.

      (b)   Notwithstanding  any other provision herein contained,  no Incentive
            Stock Options shall be granted on or after the tenth  anniversary of
            the approval of the Plan by the Board of Directors and the Plan

                                       9
<PAGE>

            shall  terminate  and  all  Options  and  Restricted   Stock  Awards
            previously granted shall terminate,  in the event and on the date of
            liquidation or dissolution of the Company.

      (c)   Whether  before  or after  termination  of the  Plan,  the  Board of
            Directors has full  authority in accordance  with Section  4.7(a) to
            amend the Plan,  effective for Options and  Restricted  Stock Awards
            which remain outstanding under the Plan.

4.8   Loans

      The  Company  may at any time,  consistent  with  applicable  regulations,
      including Regulation 0 of the Federal Reserve Board and any Company policy
      restricting or prohibiting loans to executive officers,  lend to a Grantee
      any funds  required in connection  with any aspect of the Plan,  including
      without  limitation  the exercise price and any taxes that must be paid or
      withheld.

4.9   Regulatory Capital Requirements

      All Options granted under this Plan are subject to the  requirement  that,
      notwithstanding  any other provision of the Plan or the Option  Agreement,
      the Company's  primary bank regulator  shall at any time have the right to
      require the Grantee to exercise the Option or to forfeit the Option if not
      exercised if the Company's capital falls below minimum capital required as
      determined by the Company's primary bank regulator.

4.10  Disclosures

      A copy of this Plan shall be given to any  Grantee.  Any  security  issued
pursuant to this Plan that is not registered under the Securities Act of 1933 or
the Alabama  Securities Act shall be deemed restricted within the meaning of SEC
Rule  144 and  certificates  respecting  such  shares  shall be  marked  with an
appropriate legend indicating applicable restrictions on resale.

                                        NEXITY FINANCIAL CORPORATION

                                        By: ____________________________
                                                  Chairman of the Board

ATTEST:

__________________________
Secretary

                                       10Exhibit 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 Directors

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"}]]