Document:

Exhibit 10.5

               NONCOMPETITION, SEVERANCE AND EMPLOYMENT AGREEMENT

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

                               W I T N E S S E T H

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

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

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

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

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

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

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

      "Change in Control" shall mean:

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

            (ii)  During any period of up to two consecutive years, individuals
                  who, at the beginning of such period, constitute the Board
                  cease for any reason to constitute at least a majority
                  thereof, provided that any person who becomes a director
                  subsequent to the beginning of such period and whose
                  nomination for election is approved by at least two-thirds of
                  the directors then still in office who either were directors
                  at the beginning of such period or whose election or
                  nomination for

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

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

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

      "Cause" shall mean (a) fraud; (b) embezzlement; (c) conviction of the
Executive of any felony; (d) a material breach of, or the willful failure or
refusal by the Executive to perform and discharge the Executive's duties,
responsibilities and obligations under this Agreement; (e) any act of moral
turpitude or willful misconduct by the Executive intended to result in personal
enrichment of the Executive at the expense of the Company, or any of its
affiliates or which has a material adverse impact on the business or reputation
of the Company or any of its affiliates (such determination to be made by the
Board in its reasonable judgment); (f) intentional material damage to the
property or business of the Company; (g) gross negligence; or (h) the
ineligibility of the Executive to perform his duties because of a ruling,
directive or other action by any agency of the United States or any state of the
United States having regulatory authority over the Company; but only if (1) the
Executive has been provided with written notice of any assertion that there is a
basis for termination for cause which notice shall specify in reasonable detail
specific facts regarding any such assertion, (2) such written notice is provided
to the Executive a reasonable time before the Board meets to consider any
possible termination for cause, (3) at or prior to the meeting of the Board to
consider the matters described in the written notice, an opportunity is provided
to the Executive and his counsel to be heard before the Board with respect to
the matters described in the written notice, (4) any resolution or other Board
action held with respect to any deliberation regarding or decision

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

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

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

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

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

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

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

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

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

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

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

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

            5.1.1 If the Company terminates Executive's employment under this
                  Agreement for Cause pursuant to clause (i) of Section 5.1, the
                  Company's obligations under this Agreement, including any
                  obligations of the Company under Section 5.2 hereof, shall
                  cease as of the date of termination; provided, however, if
                  Executive is terminated for Cause after a Change in Control,
                  then such termination shall be treated as a Voluntary
                  Termination as contemplated in Section 5.2.3 below.

            5.1.2 If the Company terminates Executive's employment under this
                  Agreement pursuant to clauses (ii) or (iii) of Section 5.1,
                  the Company's obligations hereunder, including the obligations
                  under Sections 6.1 and 6.4 hereof, shall only cease 180 days
                  after the event giving rise to such termination. The
                  termination shall be deemed to occur on the date of death or
                  Disability, as appropriate.

            5.1.3 If the Company terminates Executive without Cause pursuant to
                  clause (iv) of Section 5.1, Executive shall be entitled to
                  receive immediately as severance upon such termination, less
                  applicable taxes and other deductions, a lump sum equal to

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                  the aggregate cash compensation provided in Sections 6.1 and
                  6.2 equal to 1.5 times Executive's annual compensation being
                  paid at the time of termination plus the benefits provided in
                  Section 6.4 for 18 months. For purposes of determining
                  compensation which is not fixed (such as a bonus), the annual
                  amount of such unfixed compensation shall be deemed to be
                  equal to the average of such compensation over the three year
                  period immediately prior to the termination.

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

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

            5.2.1 If Executive terminates his employment hereunder pursuant to
                  clauses (i) or (ii) of Section 5.2, Executive shall be
                  entitled to receive immediately as severance upon such
                  termination, less applicable taxes and other deductions, a
                  lump sum equal to the aggregate cash compensation provided in
                  Sections 6.1 and 6.2 equal to 1.5 times Executive's annual
                  compensation being paid at the time of termination, plus the
                  benefits provided in Section 6.4 for 18 months. For purposes
                  of determining compensation which is not fixed (such as a
                  bonus), the annual amount of such unfixed compensation shall
                  be deemed to be the equal to the average of such compensation
                  over the three year period immediately prior to the
                  termination.

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

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

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

            6.1   Annual Salary. During the Term hereof, the Company shall pay
                  to Executive a base salary established by the Chief Executive
                  Officer which for the first year of the Term shall be not less
                  than the salary of the Executive for any of the past three
                  years. Executive's salary will be reviewed by the Chief
                  Executive Officer each fiscal year and, in the sole discretion
                  of the Chief Executive Officer, may be increased for such
                  year; provided, however, that following a Change in Control,
                  the base salary shall be increased annually by a percentage at
                  least equal to the average annual increase over the past three
                  years. 6.2 Annual Incentive Bonus. During the Term hereof, the
                  Chief Executive Officer may approve payment by the Company to
                  Executive an annual incentive cash bonus determined by the
                  Chairman of the Board.

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

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

      7.    Excess Parachute Payments.

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

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

      8. Confidentiality. Executive shall hold in a fiduciary capacity for the
benefit of the Company all Confidential Information relating to the Company or
any of its affiliated companies, and their respective businesses, which shall
have been obtained by the Executive during the Executive's employment by the
Company or any of its affiliated companies. After termination of Executive's
employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone other
than the Company and those designated by it. Upon the termination or expiration
of his

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employment hereunder, Executive agrees to deliver promptly to the Company all
Company files, customer lists, management reports, memoranda, research, Company
forms, financial data and reports and other documents supplied to or created by
him in connection with his employment hereunder (including all copies of the
foregoing) in his possession or control and all of the Company's equipment and
other materials in his possession or control. In no event shall an asserted
violation of the provisions of this Section 10 constitute a basis for deferring
or withholding any amounts otherwise payable to the Executive under this
Agreement.

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

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

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

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

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

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

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

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

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

           To Executive:       John J. Moran
                               _____________________________
                               _____________________________

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

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

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

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

                  14.2 All claims, disputes and other matters in question
            between the Executive and the Company arising out of or related to
            the interpretation of this Agreement or the breach of this
            Agreement, except as specifically governed by the foregoing
            provisions where there may be irreparable harm and damage to the
            Company which could not be compensated in damages, shall be decided
            by arbitration in accordance

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            with the rules of the American Arbitration Association. This
            agreement to arbitrate shall be specifically enforceable under
            applicable law in any court having jurisdiction. The award rendered
            by the arbitrator shall be final and judgment may be entered upon it
            in accordance with the applicable law of any court having
            jurisdiction thereof.

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

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

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

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

                                       10
<PAGE>

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

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

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

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

                                       11
<PAGE>

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

EXECUTIVE

____________________________
John J. Moran

NEXITY FINANCIAL CORPORATION

____________________________
By:  Greg L. Lee
     Chairman of the Board
     and Chief Executive Officer

                                       12Exhibit No. 10.6

                              EMPLOYMENT AGREEMENT
                              --------------------

      THIS EMPLOYMENT  AGREEMENT (this "Agreement") is effective the 15th day of
November 2001 (the  "Effective  Date"),  by and between  NEXITY BANK, an Alabama
banking corporation ("Employer"); and Kenneth T. Vassey ("Employee").

                                    RECITALS

      WHEREAS, Employer desires to retain the services of Employee as its Senior
Vice President Senior Lending Officer, and Employee desires to be so employed;

                                    AGREEMENT

      NOW,  THEREFORE,  in  consideration  of the mutual  recitals and covenants
contained herein, the parties hereby agree as follows:

      1.  Employment.  Employer agrees to employ Employee and Employee agrees to
be employed by Employer, subject to the terms and provisions of this Agreement.

      2. Term.  The  employment of Employee by Employer as provided in Section 1
unless earlier terminated as provided herein, shall be for a rolling term of two
years (the "Term") commencing on the date hereof. This agreement shall be deemed
to extend each day for an additional day automatically and without any action on
behalf of either party hereto.  The obligations and rights set forth in Sections
7, 8 and 9 hereof shall survive  termination of this Agreement  except as may be
specified otherwise in such sections.

      3.    Duties; Extent of Services.  Employee shall perform for Employer all
            duties  incident to the  position of Senior  Vice  President  Senior
            Lending  Officer  of  the  Employer,  under  the  direction  of  the
            president of Employer, or its designee. In addition,  Employee shall
            engage  in  such  other  services  for  Employer  or its  affiliated
            companies,  as Employer from time to time shall direct.  The precise
            services of Employee  and the title of  Employee's  position  may be
            extended,  curtailed  or  modified  by  Employer  from  time to time
            without affecting the enforceability of the terms of this Agreement.
            Employee  shall use his best efforts in, and devote his entire time,
            attention,  and  energy,  to  Employer's  business  and,  except  as
            previously  disclosed to Employer,  shall not during the term hereof
            serve,  without the express  permission of the board of directors of
            Employer, as an officer or director of any business enterprise other
            than the Company or an affiliate

<PAGE>

            thereof.  Nothing  contained herein is intended to prohibit Employee
            from  spending a  reasonable  amount of time  managing  his personal
            investments  and discharging  his civic  responsibilities  and other
            permitted  activities as long as such  activities do not  materially
            interfere with his duties and obligations under this Agreement.

      4. Compensation.

      (a)  During  the term of this  Agreement,  Employee's  total  annual  cash
compensation  shall be an amount not less than  $150,000.00.  During the term of
this  Agreement,  Employee may also receive other cash or non-cash  compensation
(including without limitation merit increases and/or  participation in incentive
compensation  plans  adopted  by  Employer)  as may  be  granted  by  Employer's
Executive management, in its sole discretion.

      (b)   Employee shall be entitled to vacation days,  paid holidays and sick
            days and health benefits as provided customarily by Employer.

      (c)   Employee  shall be  granted  options to  acquire  100,000  shares of
            Nexity Financial Corporation Common Stock at the then current market
            price at  execution  of the  agreement  under the  Nexity  Financial
            Corporation Stock Option Plan.

      5. Compliance  with Rules and Policies.  Employee shall comply with all of
the rules,  regulations,  and policies of Employer now or hereinafter in effect.
He shall  promptly  and  faithfully  do and perform any and all other duties and
responsibilities  which he may,  from  time to time,  be  directed  to do by the
Chairman or President of Employer or its designee.

      6. Representation of Employee. Except as previously disclosed to Employer,
Employee  represents to Employer that he is not subject to any rule,  regulation
or agreement,  including without limitation, any non-compete or non-solicitation
agreement,  that purports to, or which  reasonably  could, be expected to limit,
restrict  or  interfere  with  Employee's  ability  to engage in the  activities
provided for in this Agreement.

      7. Disclosure of Information.  Employee  acknowledges  that any documents,
information  and technology and computer  related  know-how,  whether written or
not, that comes into Employee's possession or knowledge during Employee's course
of employment  with  Employer  which is not or has not become part of the public
domain,  including,  without  limitation the financial and business  conditions,
goals and

<PAGE>

operations of customers of Employer, or any of its affiliates or subsidiaries as
the same may exist from time to time (collectively, "Confidential Information"),
are valuable,  special and unique assets of Employer's  business.  Employee will
not,  during or after  the term of this  Agreement,  (i)  disclose  any  written
Confidential Information to any person, firm, corporation, association, or other
entity not  employed by or  affiliated  with  Employer for any reason or purpose
whatsoever,  or (ii) use any  written  Confidential  Information  for any reason
other than to further the  business of Employer.  Employee  agrees to return any
written Confidential  Information,  and all copies thereof, upon the termination
of Employee's  employment  (whether  hereunder or otherwise).  In the event of a
breach or threatened  breach by Employee of the provisions of this Section 7, in
addition to all other remedies available to Employer, Employer shall be entitled
to an injunction  restraining  Employee from disclosing any written Confidential
Information  or from  rendering any services to any person,  firm,  corporation,
association  or other entity to whom any written  Confidential  Information  has
been disclosed or is threatened to be disclosed. Employee further agrees that he
will not divulge to any person, firm, corporation,  association, or other entity
not employed by or affiliated with Employer, any of Employer's business methods,
sales, services or techniques, regardless of whether the same is written or not.

8.    Competition.  Except as  specified  otherwise  in this  Section 8, if this
      Agreement  is  terminated  by the Company for Cause or by the Employee for
      any reason, Mr. Vassey shall not enter into an employment  relationship or
      a consulting arrangement or serve as an officer,  director or greater than
      5%shareholder   with  any  other  bank,   thrift,   lending  or  financial
      institution in the capacity of a  correspondent  banker or as a supervisor
      of or a  participant  in any  Internet  banking  business  (hereinafter  a
      "competitor")  within  one  year of the  anniversary  of the  date of such
      termination (the "Noncompete  Period").  The obligations contained in this
      Section 8 shall not  prohibit  Mr.  Vassey from being an owner of not more
      than 5% of the outstanding stock of any class of a bank,  thrift,  lending
      or financial institution,  which is publicly traded, so long as Mr. Vassey
      has no active participation in the business of such corporation.

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

<PAGE>

      8.2   The severance  payment and stock option  payment to which Mr. Vassey
            is  entitled   under  this  Agreement   shall  be  deemed   adequate
            consideration  for Mr. Vassey's  obligations  under Sections 7 and 8
            hereof.

      8.3   If, at the time of enforcement of this Section 8, a court shall hold
            that the  duration,  scope or area  restrictions  stated  herein are
            unreasonable under  circumstances  then existing,  the parties agree
            that the  maximum  duration,  scope or area  reasonable  under  such
            circumstances shall be substituted for the stated duration, scope or
            areas and that the court shall be allowed to revise the restrictions
            contained  herein  to  cover  the  maximum  period,  scope  and area
            permitted by law. Mr. Vassey agrees that the restrictions  contained
            in this Section 8 are reasonable.

      8.4   In the event of a breach or a threatened breach by Mr. Vassey of any
            of the  provisions  of this  Section 8, the  Company,  addition  and
            supplementary  to other rights and  remedies  existing in its favor,
            may apply to any court of law or  equity of  competent  jurisdiction
            for specific  performance and/or injunctive or other relief in order
            to  enforce or  prevent  any  violations  of the  provisions  hereof
            (without  posting a bond or other  security).  In  addition,  in the
            event of an  alleged  breach  or  violation  by Mr.  Vassey  of this
            Section 8, the  Noncompete  Period shall be tolled until such breach
            or violation has been duly cured.

      9. Termination.

            (a) Employer  may  terminate  Employee For Cause.  "For Cause" shall
mean (i) abuse of or addiction to intoxicating drugs (including  alcohol);  (ii)
any action by the Employee which constitutes fraud,  sexual harassment,  willful
malfeasance of duty or conduct grossly  inappropriate  to Employee's  office and
which is  demonstrably  likely  to lead to  material  injury to  Employer,  or a
successor or affiliate of Employer,  (iii) a felony  conviction of Employee;  or
(iv) the  suspension  or  removal  of  Employee  by  federal  or  state  banking
regulatory authorities;  provided, that "For Cause" shall not include Employee's
medical disability. In addition, the services of Employee and the obligations of
Employer under this Agreement may be terminated For Cause by Employer due to the
death of Employee.

            (b) If Employer  terminates  Employee's  employment  hereunder  "For
Cause" all rights and obligations  specified in Section 8 shall survive any such
termination and Employee shall not be entitled to any further  compensation from
Employer including compensation under Section 4.

            (c) If for any  reason  during the term of this  Agreement  Employee
desires to cease working for Employer,  Employee  shall notify  Employer of such
desire.

<PAGE>

In that case,  Employee may cease working for Employer at a mutually agreed upon
date, all rights and obligations  specified in Section 8 shall continue to apply
in full and  Employee  shall not be entitled to any  further  compensation  from
Employer under Section 4.

            (d)  Employer  may  terminate  Employee  at any time other than "For
Cause" but in that case (i) Employee  shall continue to receive the minimum cash
compensation  provided  for in Section 4 (a) for a period of one year  following
the date of termination  and health  insurance  comparable to that maintained by
Employer  on  behalf of  Employee  prior to such  termination  for such one year
period, and (ii) all rights and obligations specified in Section 8 shall survive
any such  termination,  which for purposes of this Section 9 (d) shall mean that
the non-compete  covenant provided for therein shall continue until all payments
due to Employee  under this Section 9 (d) have been made and,  thereafter,  they
shall expire.

            (e) Notwithstanding  anything to the contrary contained herein, upon
the occurrence of a "Change in Control," all rights and obligations specified in
Section 8 (but not Section 4) shall terminate immediately.  For purposes of this
Section 9(e),  "Change of Control" shall mean the occurrence  during the term of
this Agreement of any of the following  events:  (i) a merger,  consolidation or
other corporate  reorganization  of Employer in which Employer does not survive,
or a sale of all or  substantially  all of the  assets  of  Employer,  (ii)  the
acquisition of beneficial  ownership by one person or a related group of persons
of greater  than Fifty One  percent  (51%) of the  outstanding  voting  stock or
assets of Employer or  Employer's  holding  company,  or (iii)  individuals  who
currently constitute the directors of Employer or Employer's holding company, or
who become directors of Employer upon nomination or election by the directors of
Employer,  other  than  through  an actual or  threatened  stockholder  election
contest,  cease for any reason to  constitute  a majority  of the  directors  of
Employer.

            (f) The  provisions  of Section 7 shall  survive  regardless  of any
termination   of  Employee's   employment   hereunder,   whether   voluntary  or
involuntary.

      10. Notice. For the purposes of this Agreement,  notices and demands shall
be deemed  given when mailed by United  States  mail,  addressed  in the case of
Employer  to Nexity  Financial  Corporation,  3500 Blue Lake  Drive,  Suite 330,
Birmingham,  Alabama 35243, Attention:  President; or in the case of Employee to
Mr. Ken Vassey 3226 Millwood Trail, Smyrna, Georgia 30080.

      11. Miscellaneous. No provision of this Agreement may be modified, waived,
or  discharged  unless such  modification,  waiver or  discharge is agreed to in
writing.  The validity,  interpretation,  construction  and  performance of this
Agreement

<PAGE>

shall be governed by the laws of the State of Alabama. This Agreement supersedes
and cancels any prior employment agreement or understanding entered into between
Employee and Employer.

      12.  Validity.  The  invalidity  of any  provision or  provisions  of this
Agreement shall not affect any other  provision of this  Agreement,  which shall
remain in full force and effect,  nor shall the  invalidity  of a portion of any
provision of this Agreement affect the balance of such provision.

      13. Default.

            (a)  If  Employee   breaches  or  violates  any  of  the  covenants,
conditions,  or terms of this  Agreement on his part to be  performed,  Employer
shall have the right,  without  notice to Employee,  to obtain an  injunction or
other  equitable  relief  against him  restraining  him from  violating any such
covenant,  condition  or term,  such notice  being  hereby  expressly  waived by
Employee.

            (b) Additionally,  in the event of any conduct by Employee violating
any provision of this Agreement, Employer shall be entitled, if it so elects, to
institute  and  initiate  and  prosecute  proceedings  in any court of competent
jurisdiction, either at law or in equity, to obtain damages for such conduct, to
enforce specific  performance of such provision or to obtain any other relief or
any combination of the foregoing that Employer may elect to pursue.

      14. Parties.  Except as provided in Section 9 (e), this Agreement shall be
binding  upon and shall  inure to the  benefit of any  successors  or assigns to
Employer.  Employee  may not  assign any of his  rights or  delegate  any of his
duties or obligations under this Agreement or any portion hereof.

      IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by
Employee and by a duly authorized officer of Employer as of the date first above
written.

<PAGE>

Witnesses:

--------------------------------             -----------------------------------

--------------------------------

Attest:                                      NEXITY BANK

By:                                            By:
   -----------------------------                  ------------------------------
   Its Secretary                                  Its: President

[Corporate Seal]

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