Document:

Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.2  

 
  FIRST AMENDMENT
  TO EMPLOYMENT AGREEMENT    
  

    THIS FIRST AMENDMENT is made on December 17, 2001 (the "Effective Date"), by and among NETBANK, INC. (the
"Company"), the parent bank holding company of NETBANK, a federal savings bank (the "Bank") (collectively, the "Employer"), and  D.R. GRIMES (the
"Executive"). 

 
 

W I T N E S S E T H:    
  

    WHEREAS, the Employer and the Executive entered into that certain employment agreement dated as of January 4, 1999 (the "Employment Agreement"); and 

    WHEREAS,
the parties wish to amend the Employment Agreement as provided herein; 

    NOW,
THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as of the date first set
forth above to amend the Employment Agreement as follows: 

    1.  Term and Duties.  Executive shall continue in the employ of the Employer as Chief Executive Officer
on an at-will basis. Executive's employment may be terminated for any reason at any time by any party. During his remaining term of employment, Executive's duties shall be the same as
those set forth in Section 2 of the Employment Agreement. Executive's base salary and annual incentive compensation shall be payable as contemplated by Sections 4.1, 4.2, and 4.3 of the
Employment Agreement, except to the extent provided in this First Amendment. 

    2.  Transfer of Automobile.  Title to the Employer's Mercedes-Benz automobile currently made
available to the Executive for his use shall be transferred to the Executive on the Effective Date or as soon as practicable thereafter. The Executive acknowledges that the value of the automobile at
the time of transfer will constitute imputed income to the Executive. 

    3.  Termination Payments.

    (a) If
the Executive voluntarily resigns his employment for any reason, the Employer terminates his employment for any reason, or the Executive dies while employed by
the Employer, the Employer shall pay Executive as severance pay and liquidated damages a lump sum, cash payment equal to the product of the Executive's "Average Monthly Compensation" multiplied by
thirty-six (36), where "Average Monthly Compensation" means the quotient determined by dividing the sum of the Executive's base salary in effect as of the employment termination date and
his Annual Incentive Bonus by twelve (12). For purposes of determining the amount payable under this Section 3(a), the term "Annual Incentive Bonus" shall mean the greater of the annual
incentive bonus earned by the Executive for the most recent calendar year ending prior to the employment termination date or the annual incentive bonus that would be earned by the Executive by
annualizing the performance of the Employer based on year-to-date performance for the calendar year in which the employment termination date occurs. 

    (b) For
a period equal to thirty-six (36) months following the employment termination date (the "Severance Period"), the Company shall cause the Bank
to continue to provide to the Executive, to the extent practicable, the benefits provided in Section 4.3 of the Employment Agreement (except for the car allowance provided for in
Section 4.3(d) thereof); provided, however, that in lieu of providing health benefits, the Company shall pay the Executive an amount equal to the cost of COBRA health continuation coverage that
would be charged by the Bank to a former employee and eligible dependents for the greater of the Severance Period or the period during which the Executive and his eligible dependents are entitled to
COBRA health continuation coverage from the Bank. To the extent that the Company determines that the continuation of any other benefits by the Bank is not practicable, the Company shall pay the
Executive an amount equal to what would have been the Bank's cost of providing the coverage for such benefits during 

 

the Severance Period to the Executive and his eligible dependents if the coverage could have been continued. 

    (c) In
the event the Employer implements the deferred compensation program for senior executives currently under consideration by the Compensation Committee of the
Board of Directors of the Company (the "Proposed Deferred Compensation Program") prior to the employment termination date, the Executive will be eligible to participate in the Proposed Deferred
Compensation Program on terms comparable to other senior executives of the Employer. If the Proposed Deferred Compensation Program becomes effective as contemplated herein, the Executive shall receive
credit under the Proposed Deferred Compensation Program for all of his years of service with the Employer beginning
on the date he first performed an hour of service for the Employer and ending on the employment termination date. Payment of any amounts due to the Executive under the Proposed Deferred Compensation
Program, if any, shall be made in accordance with the terms and conditions of the Proposed Deferred Compensation Program as adopted by the Employer. 

    (d) The
Executive shall be entitled to a payment equal to $800,000 (the "Success Fee") if the Merger is consummated on or before September 30, 2002 or such later
closing of the Employer's acquisition of Resource Bank Mortgage Group, Inc. (the "Acquisition Date") as may be determined by the Employer pursuant to the terms of that certain agreement
documenting the terms and conditions of the Merger. The Success Fee shall be paid to the Executive in a single lump sum, cash payment on the Acquisition Date. Notwithstanding the foregoing, if, prior
to the Acquisition Date, the Executive voluntarily resigns at any time or if he is involuntarily terminated by the Employer for Cause, then no payment shall be due to the Executive pursuant to this
Section 3(d). For purposes of this First Amendment, the term "Cause" shall mean (a) a material breach of the terms of Section 6 hereof; (b) fraudulent or otherwise illegal
conduct by the Executive that results in material financial harm to the Employer or otherwise has a material adverse effect upon its operations; or (c) conduct by the Executive that results in
removal from his position as an officer or executive of the Employer pursuant to a written order by any regulatory agency with authority or jurisdiction over the Employer. 

    (e) Notwithstanding
any provision to the contrary in any individual option award granted to the Executive by the Company and the Executive, the Executive shall be
permitted to exercise all or any portion of each of his non-qualified stock options for a period of two (2) years following the employment termination date or until the expiration
of the award's maximum term, whichever is less (such option extensions are referred to herein collectively as the "Extended Option Terms"). 

    (f)  If,
during the Extended Option Terms, the Company offers one or more of its optionees the opportunity to cancel any existing options to purchase shares of the
Company's common stock in exchange for a $2.00 per share cash payment, the Executive shall be eligible to cancel all or any portion of his then outstanding options on the same terms and conditions. 

    (g) If
the Company offers to cancel existing options as contemplated by Section 3(f) above on or before June 30, 2002, the Executive shall be entitled to
receive a payment equal to $1.00 for each share subject to options he cancelled during calendar year 2000, reduced by the number of Company options that were granted to the Executive during calendar
year 2001. 

    4.  General Release.  The Executive hereby releases, acquits and forever discharges the Company and the
Bank, and each of the Company's and the Bank's owners, stockholders, predecessors, successors, assigns, agents, directors, officers, employees, representatives, attorneys, parent companies, divisions,
subsidiaries, affiliates (and agents, directors, officers, employees, representatives and attorneys of such parent companies, divisions, subsidiaries and affiliates), and all persons acting by,
through, under or in concert with any of them (collectively "Employer Releasees"), or any of them, from any and all charges, complaints, claims, liabilities, obligations, promises, agreements,
controversies, damages, 

2

 

actions, causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, including, but not limited to, rights
arising out of or in connection with Executive's employment by the Company and/or the Bank, which the Executive now has, owns or holds, or claims to have, own or hold, or which Executive at any time
heretofore had, owned or held, or claimed to have, owned or held, against each or any of the Employer Releasees at any time up to and including the date first set forth above, except the obligations
set forth in this First Amendment. 

    Reciprocally,
the Company and the Bank hereby irrevocably and unconditionally release, acquit and forever discharge the Executive, his agents, successors, assigns, representatives,
attorney and all persons acting by, through, under or in concert with any of them (collectively "Executive Releasees"), or any of them, from any and all charges, complaints, claims, liabilities,
obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or unknown, suspected
or unsuspected, which the Company and/or the Bank now has, owns or holds, or claims to have, own or hold, or which the Company and/or the Bank at any time heretofore had, owned or held, or claimed to
have, owned or held, against each or any of the Executive Releasees at any time up to and including the date first set forth above, except the obligations set forth in this First Amendment. Executive
Releasees and Employer Releasees are referred to collectively hereafter as the "Releasees". 

    5.  Litigation.  Each party agrees that no party, nor any person or organization on the party's behalf,
has filed, or assigned others the right to file, nor are there pending, any complaints, charges, or lawsuits against any other party, with any federal, state or local governmental agency or court. 

    6.  Best Efforts, Confidentiality and Professionalism.  Executive, in his capacity as the Chief Executive
Officer of the Employer, shall use his best efforts to effect the Company's acquisition of Resource Bank Mortgage Group, Inc. (the "Acquisition"). Toward that end, so long as he remains the
Chief Executive Officer of the Employer, the Executive shall exert all reasonable efforts to secure the approval of the Acquisition by the shareholders of the Company and the approval of all
regulatory authorities which are necessary to consummate the Acquisition. In addition, throughout such period, the Executive shall apply his best efforts to preserve intact the business of the
Employer, including, but not limited to, the retention of its customers, employees and vendors. In the event that the Executive's employment is terminated for any reason, as a condition to any
obligations of the Company pursuant to Section 3 of this First Amendment, the Executive, subsequent to such termination, shall make himself reasonably available to the Employer to perform such
tasks to effect the Acquisition as the Employer reasonably determines are best performed by Executive given the nature of his position with, and services performed for, the Employer prior to such
termination. 

    Executive
represents and agrees that Executive will keep the terms of this First Amendment completely confidential, and that Executive will not hereafter disclose any information
concerning this First Amendment to anyone other than (a) Executive's immediate family; (b) executive officers, directors or shareholders of the Company and/or the Bank, to the extent
necessary; (c) professional representatives
who will be informed of and bound by this confidentiality clause; and (d) persons or entities as may be required by law. In addition, any discussion by Executive about the Company or the Bank,
the business of the Company and the Bank, or any of the employees of the Company and the Bank shall be limited to respectful, non-derogatory and non-damaging references by
Executive. 

    Reciprocally,
the Company and the Bank agree to keep this same information confidential and will disclose it only to those individuals within or affiliated with the Company and/or the
Bank who have a need to know, their professional representatives, who will be informed of and bound by this confidentiality clause; and persons or entities as may be required by law. In addition, any
discussion by the Company and/or the Bank about the Executive's relationship with the Company and/or the Bank 

3

 

shall be limited to respectful, non-derogatory and non-damaging references by the Company and/or the Bank. 

    7.  Assignment.  The rights and obligations of the Company and the Bank under this First Amendment may be
assigned to and binding upon the successors and assigns of the Company and Bank without the consent of the Executive. 

    8.  Entire Agreement.  This First Amendment, together with the Surviving Provisions (as defined below),
embody the entire agreement of the parties hereto relating to the subject matter hereof and supersede any and all prior agreements. No amendment or modification of this First Amendment shall be valid
or binding upon the parties unless made in writing and signed by the parties hereto. The definitional provisions of the Employment Agreement corresponding to the defined terms used, but not otherwise
defined, herein; Section 2 thereof; the second paragraph of Section 3.4 thereof; Sections 4.1, 4.2 and 4.3 thereof; and Sections 5, 9, 11 and 14 thereof are referred to herein as the
"Surviving Provisions". 

    9.  Governing Law.  This First Amendment shall be governed by and construed in accordance with any
applicable federal law and the substantive laws of the State of Georgia, without reference to its conflict of laws provisions. 

    10. Survival.  The obligations of the parties as expressly set forth in Sections 2, 3, and 5 hereof shall
survive the Executive's termination of employment. 

    IN
WITNESS WHEREOF, the parties have executed this First Amendment on the day and year set forth below. 

The Company:  

	NETBANK, INC.	 	 
	
By:	

/s/ T. STEPHEN JOHNSON   
	
 	

 
	Title:	Chairman of the Board
	 	 
	
The Bank:	
 	

 
	
NETBANK	
 	

 
	
By:	

/s/ T. STEPHEN JOHNSON   
	
 	

 
	Title:	Chairman of the Board
	 	 
	
The Executive:	
 	

 
	
/s/ D.R. GRIMES   
D.R. GRIMES	
 	

 

4

QuickLinks

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

W I T N E S S E T HPrepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.3  

 
  FIRST AMENDMENT
  TO EMPLOYMENT AGREEMENT    
  

    THIS FIRST AMENDMENT is made on December 17, 2001 (the "Effective Date"), by and among NETBANK, INC. (the
"Company"), the parent bank holding company of NETBANK, a federal savings bank (the "Bank") (collectively, the "Employer"), and  ROBERT E. BOWERS (the
"Executive"). 

 
 

W I T N E S S E T H:    
  

    WHEREAS, the Employer and the Executive entered into that certain employment agreement dated as of January 1, 2000 (the "Employment Agreement"); and 

    WHEREAS,
the parties wish to amend the Employment Agreement to modify the severance benefits and to reflect additional obligations on the part of the Employer pertaining to incentive
compensation; 

    NOW,
THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as of the Effective Date to
amend the Employment Agreement as follows: 

    1.  By
deleting the existing Section 1.7 and substituting therefor the following: 

    "1.7
'Initial Term' shall mean that period of time commencing on the date of execution of this Agreement by the Employer and the
Executive and running until the earlier of three (3) years thereafter or any termination of employment of the Executive under this Agreement as provided for in Section 3." 

    2.  By
adding the following new Section 2.4: 

    "2.4
The Executive agrees to resign voluntarily as a member of the Board of Directors of the Company, effective as of the date the merger of Resource Bancshares Mortgage
Group, Inc. with and into the Company (the "Merger") is consummated (the "Closing Date"); provided, however, that in the event that the Merger is not consummated on or before
September 30, 2002, the Executive agrees to resign voluntarily at any time thereafter at the request of the Chairman of the Employer." 

    3.  By
adding the following new Section 3.2.5: 

    "3.2.5
For any reason, the Executive may elect to terminate this Agreement on or before January 31, 2002, provided that the Executive shall give prior written notice to the
Employer of his intention to terminate this Agreement." 

    4.  By
adding the following new Section 3.2.6: 

    "3.2.6
If the Merger is consummated on or before September 30, 2002, during the 30-day period beginning on the date which is eleven (11) months following the
Closing Date, the Executive may elect to terminate this Agreement, provided that the Executive shall give prior written notice to the Employer of his intention to terminate this Agreement." 

    5.  By
adding the following new Section 3.3.2(c): 

    "(c)
Pursuant to Section 3.2.5 or 3.2.6, the Company shall be required to meet its obligations to the Executive under Section 3.4 below; provided, however, that if
employment is terminated by the Executive pursuant to Section 3.2.5, the Company's obligations shall be conditioned upon the Executive, prior to such termination and in his capacity as the
Chief Financial Officer of the Employer, having used his best efforts to effect the Company's acquisition of Resource Bank Mortgage Group, Inc. (the "Acquisition"), including the exertion of
all reasonable efforts to secure the approval of the Acquisition by the shareholders of the Company and the approval of all 

 

regulatory authorities which are necessary to consummate the Acquisition. In addition, prior to such termination, the Executive shall have applied his best efforts to preserve intact the business of
the
Employer, including, but not limited to, the retention of its customers, employees and vendors. In addition, as a further condition to any obligations of the Company as may arise pursuant to
Section 3.2.5, the Executive, subsequent to such termination, shall make himself reasonably available to the Employer to perform such tasks to effect the Acquisition as the Employer reasonably
determines are best performed by Executive given the nature of his position with, and services performed for, the Employer prior to such termination." 

    6.  By
deleting the existing first paragraph of Section 3.4 and substituting therefor the following: 

    "3.4  Termination Payments. In the event that the Executive's employment is terminated under this Agreement prior to the expiration of
the Term pursuant to Section 3.2.1(b), Section 3.2.2(a) or Section 3.2.3, the Company shall pay to the Executive as severance pay and liquidated damages a lump sum amount equal to
the product of the (a) Average Monthly Compensation multiplied by (b) thirty-six (36). In addition, for a period of thirty-six (36) months after the
effective date of the termination (the "Severance Period"), the Company shall cause the Bank to continue to provide to the Executive, to the extent practicable, the benefits described in
Section 4.3; provided, however, that in lieu of providing health benefits, the Company shall pay the Executive an amount equal to the cost of COBRA health continuation coverage that would be
charged by the Bank to a former employee and eligible dependents for the greater of the Severance Period or the period during which the Executive and his eligible dependents are entitled to COBRA
health continuation coverage from the Bank. To the extent the Company determines that the continuation of any other benefits by the Bank is not practicable, the Company shall pay the Executive an
amount equal to what would have been the Bank's cost of providing the coverage for such benefits during the Severance Period to the Executive and his eligible dependents if the coverage could have
been continued. 

    In
the event the Executive's employment is terminated under this Agreement prior to the expiration of the Term pursuant to Section 3.2.5, the Company shall pay to the Executive
as severance pay and liquidated damages a lump sum amount equal to the product, of the (a) Average Monthly Compensation multiplied by (b) thirty-six (36). In addition, for
the Severance Period, the Company shall cause the Bank to continue to provide to the Executive, to the extent practicable, the benefits described in Section 4.3 hereof; provided, however, that
in lieu of providing health benefits, the Company shall pay the Executive an amount equal to the cost of COBRA health continuation coverage that would be charged by the Bank to a former employee and
eligible dependents for the greater of the Severance Period or the period during which the Executive and his eligible dependents are entitled to COBRA health continuation coverage from the Bank. To
the extent the Company determines that the continuation of any other benefits is not practicable, the Employer shall pay the Executive an amount equal to what would have been the Bank's cost of
providing the coverage for such benefits during the Severance Period to the Executive and his eligible dependents if the coverage could have been continued. 

    In
the event the Executive's employment is terminated under this Agreement prior to the expiration of the Term pursuant to Section 3.2.6, the Company shall pay to the Executive
as severance pay and liquidated damages a lump sum amount equal to the product, of the (a) Average Monthly Compensation multiplied by (b) eighteen (18). In addition, for a period of
eighteen (18) months from the effective date of the termination (the "Alternative Severance Period"), the Company shall cause the Bank to continue to provide to the Executive, to the extent
practicable, the benefits described in
Section 4.3 hereof; provided, however, that in lieu of providing health benefits, the Company shall pay the Executive an amount equal to the cost of COBRA health continuation coverage that
would be charged by the Bank to a former employee and eligible dependents for the greater of the Alternative Severance Period or the period during 

2

 

which the Executive and his eligible dependents are entitled to COBRA health continuation coverage from the Bank. To the extent the Company determines that the continuation of any other benefits is
not practicable, the Employer shall pay the Executive an amount equal to what would have been the Bank's cost of providing the coverage for such benefits during the Alternative Severance Period to the
Executive and his eligible dependents if the coverage could have been continued." 

    7.  By
adding the following new Subsection (c) to Section 4.2: 

    "(c)
The Executive shall be entitled to a bonus payment equal to $250,000 (the "Special Incentive Compensation") if the Merger is consummated on or before September 30, 2002.
The Special Incentive Compensation shall be paid to the Executive in a single lump sum payment in cash on the Closing Date or as soon as practicable thereafter (the "Payment Date"); provided, however,
that the Special Incentive Compensation will only be paid to the Executive if (1) the Merger is consummated on or before September 30, 2002; and (2) one of the following three
conditions is satisfied: (i) the Executive remains employed by the Company or the Bank continuously through the Payment Date; (ii) the Executive is terminated by the Company without
Cause pursuant to Section 3.2.1(b) on or after November 1, 2001 regardless of whether such termination occurs prior to or after the Merger; (iii) the Executive resigns pursuant to
Section 3.2.5, regardless of whether such termination occurs prior to or after the Payment Date; or (iv) the Executive dies or becomes subject to a Permanent Disability following the
effective date of the Merger but prior to the Payment Date." 

    8.  By
adding the following new Subsection (d) to Section 4.2: 

    "(d)
As of the Closing Date or as soon as practicable thereafter and subject to Executive's continued employment with the Employer through the option grant date, the Executive shall
be entitled to receive an option to purchase 100,000 shares of the Company's common stock." 

    9.  By
adding the following new Subsection (e) to Section 4.2: 

    "(e)
In the event the Company offers one or more employees the opportunity to cancel any existing options to purchase shares of the Company's common stock in exchange for a $2.00 per
share cash payment, the Executive shall be eligible to cancel all or any portion of his then outstanding options on
the same terms and conditions. In addition, if the Company offers to cancel existing options as described in the preceding sentence on or before September 30, 2002, the Executive shall be
entitled to receive a cash payment equal to $200,000. Any payments due to the Executive pursuant to this Section 4.2(e) shall not be conditioned upon the Executive's continuing employment with
the Employer." 

    10. By
adding the following new Subsection (f) to Section 4.2: 

    "(f)
In the event the Employer implements the deferred compensation program for senior executives currently under consideration by the Compensation Committee of the Board of Directors
of the Company (the "Proposed Deferred Compensation Program") prior to the effective date of the Executive's termination of employment, the Executive will be eligible to participate in the Proposed
Deferred Compensation Program on terms comparable to other senior executives of the Employer. If the Proposed Deferred Compensation Program becomes effective as contemplated herein, the Executive
shall receive credit under the Proposed Deferred Compensation Program for all of his years of service with the Employer beginning on the date he first performed an hour of service for the Employer.
Payment of any amounts due to the Executive under the Proposed Deferred Compensation Program, if any, shall be made in accordance with the terms and conditions of the Proposed Deferred Compensation
Program as adopted by the Employer." 

3

 

    11. By
deleting the existing Subsection (a) of Section 4.3 and substituting therefor the following new Subsection (a): 

    "(a)
In addition to the Base Salary, Incentive Compensation and Special Incentive Compensation, the Executive shall be entitled to such other benefits as may be available from time to
time for executives of the Employer similarly situated to the Executive. All such benefits shall be awarded and administered in accordance with the Employer's standard policies and practices. Such
benefits may include, by way of example only, profit sharing plans, retirement or investment funds, dental, health, life and disability insurance benefits, and such other benefits as the Employer
deems appropriate." 

    12. By
deleting the existing Subsection (d) of Section 4.3 and substituting therefor the following new Subsection (d): 

    "(d)
The Executive shall be reimbursed for membership in a country club approved by the Chief Executive Officer and title to the Employer's Mercedes-Benz automobile
currently made available to the Executive for his use shall be transferred to the Executive on the Effective Date or as soon as practicable thereafter. The Executive acknowledges that the value of the
automobile at the time of
transfer will constitute imputed income to the Executive. In addition, the Executive shall be provided with a car allowance during the Term of this Agreement as approved by the Chief Executive
Officer." 

    In
all remaining respects, the terms of the Employment Agreement shall remain in full force and effect. 

[Remainder
of Page Intentionally Left Blank] 

4

 

    IN WITNESS WHEREOF, the parties have caused this First Amendment to be executed as of the day and year first above written. 

	 	 	NETBANK, INC.:
	

 	
 	
By:	

/s/ T. STEPHEN JOHNSON   

	 	 	Print Name:	T. Stephen Johnson

	 	 	Title:	Chairman of the Board

	 	 	NETBANK:
	

 	
 	
By:	

/s/ T. STEPHEN JOHNSON   

	 	 	Print Name:	T. Stephen Johnson

	 	 	Title:	Chairman of the Board

	 	 	EXECUTIVE:
	

 	
 	

/s/ ROBERT E. BOWERS   
 ROBERT E. BOWERS

5

QuickLinks

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

W I T N E S S E T H

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]