Document:

Amendment No. 1 to Master Repurchase Agreement

 Exhibit 10.1 
  
 THIS AMENDMENT NO. 1, dated as of August 30, 2005 (the “Amendment”), to the Master Repurchase Agreement dated
November 12, 2004 (the “Repurchase Agreement”), by and among New Century Mortgage Corporation, NC Capital Corporation, NC Residual II Corporation and New Century Credit Corporation, each as a seller (each, a “Seller” and
collectively, the “Sellers”) and Barclays Bank PLC (the “Buyer”). 
  
 W I T N E S S E T H 
  
 WHEREAS, each Seller and the Buyer desires to amend the Repurchase Agreement to increase the Maximum Aggregate Purchase Price; 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 SECTION 1. Defined Terms. 
  
 For purposes of this Amendment, unless the context clearly requires
otherwise, all capitalized terms which are used but not otherwise defined herein shall have the respective meanings assigned to such terms in the Repurchase Agreement. 
  
 SECTION 2. Amendments. 
  
 (1) The definition of “Maximum Aggregate Purchase Price” in Section 2 of the Repurchase Agreement is hereby replaced in its entirety by the
following: 
  
 “Maximum Aggregate Purchase Price”
means the amount set forth in Section 37 hereof. 
  
 (2) Section
37 is hereby amended by deleting the reference to “$1,000,000,000” and replacing it with “$2,000,000,000 for the period from August 30, 2005 through October 31, 2005 and thereafter $1,000,000,000”. 
  
 SECTION 3. Effect of Amendment. 
  
 Upon execution of this Amendment, the Repurchase Agreement shall be, and be
deemed to be, modified and amended in accordance herewith and the respective rights, limitations, obligations, duties, liabilities and immunities of the Sellers and the Buyer shall hereafter be determined, exercised and enforced subject in all
respects to such modifications and amendments, and all the terms and conditions of this Amendment shall be deemed to be part of the terms and conditions of the Repurchase Agreement for any and all purposes. Except as modified and expressly amended
by this Amendment, the Repurchase Agreement is in all respects ratified and confirmed, and all the terms, provisions and conditions thereof shall be and remain in full force and effect. 

 SECTION 4. Binding Effect. 
  
 This Amendment shall be binding and inure to the benefit of the parties hereto and their respective successors and assigns,
except that no Seller, or Guarantor may assign or transfer any of its rights or obligations under this Agreement or any other Program Document without the prior written consent of Buyer. 
  
 SECTION 5. Binding Effect; Governing Law. 
  
 THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
  
 SECTION 6. Severability of Provisions. 
  
 If any provision of this Amendment or the Program Documents is declared invalid by any court of competent jurisdiction, such invalidity shall not affect
any other provision of the Amendment or the Program Documents, and this Amendment and each Program Document shall be enforced to the fullest extent permitted by law. 
  
 SECTION 7. Section Headings. 
  

The section headings herein are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof. 
  
 SECTION 8. Counterparts. 
  
 This Amendment may be executed in several counterparts, each of which shall
be an original and all of which shall constitute but one and the same instrument. 
  
 [signature pages follow] 

 IN WITNESS WHEREOF, the Sellers and the Buyer have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of the day and year first above written. 
  

													
	 	 	 	 	 	 	 	 	NC CAPITAL CORPORATION, as Seller
						
	 	 	 	 	 	 	 	 	 By:
	 	 /s/ Patrick Flanagan

	 	 	 	 	 	 	 	 	 	 	 Name:
	 	 Patrick Flanagan

	 	 	 	 	 	 	 	 	 	 	 Title:
	 	 Chief Executive Officer

					
	 	 	 	 	 	 	 	 	NEW CENTURY MORTGAGE CORPORATION, as Seller
						
	 	 	 	 	 	 	 	 	 By:
	 	 /s/ Patrick Flanagan

	 	 	 	 	 	 	 	 	 	 	 Name:
	 	 Patrick Flanagan

	 	 	 	 	 	 	 	 	 	 	 Title:
	 	 President

			
	Pursuant to Section 29 of the Repurchase Agreement, New Century Financial Corp, as Guarantor, hereby Consents to the Amendment contemplated herein	 	 	 	 NC RESIDUAL II CORPORATION, as Seller
  

	 	 	 	 By:
	 	 /s/ Patrick Flanagan

	 	 	 	 	 	 Name:
	 	 Patrick Flanagan

	 	 	 	 	 	 	 	 	 	 	 Title:
	 	 President

	 By:
	 	 /s/ Patrick Flanagan
	 	 	 	 
	 	 	 Name:
	 	 Patrick Flanagan
	 	 	 	 
	 	 	 Title:
	 	 Executive Vice President
	 	 	 	NEW CENTURY CREDIT CORPORATION, as Seller
						
	 	 	 	 	 	 	 	 	 By:
	 	 /s/ Patrick Flanagan

	 	 	 	 	 	 	 	 	 	 	 Name:
	 	 Patrick Flanagan

	 	 	 	 	 	 	 	 	 	 	 Title:
	 	 President

					
	 	 	 	 	 	 	 	 	BARCLAYS BANK PLC, as Buyer and Agent, as applicable
						
	 	 	 	 	 	 	 	 	 By:
	 	 /s/ Joseph O’Doherety

	 	 	 	 	 	 	 	 	 	 	 Name:
	 	 Joseph O’Doherety

	 	 	 	 	 	 	 	 	 	 	 Title:
	 	 DirectorForm of Employee Stock Ownership Plan

 Exhibit 10.01 
  
 EMPLOYEE STOCK OWNERSHIP PLAN 
  
 OF 
  
 CHARTER FINANCIAL CORPORATION 
  
 Originally Effective as of October 16, 2001 
 Incorporating Amendments No. 1, 2, 3, 4 and 5

 Table of Contents 
  

					
	 	  	 	  	Page

	Article I	  	 
		
	Definitions	  	 
			
	 Section 1.1
	  	 Account
	  	1
	 Section 1.2
	  	 Affiliated Employer
	  	1
	 Section 1.3
	  	 Allocation Compensation
	  	1
	 Section 1.4
	  	 Bank
	  	2
	 Section 1.5
	  	 Board
	  	2
	 Section 1.6
	  	 Beneficiary
	  	2
	 Section 1.7
	  	 Change in Control
	  	2
	 Section 1.8
	  	 Code
	  	2
	 Section 1.9
	  	 Committee
	  	2
	 Section 1.10
	  	 Company
	  	2
	 Section 1.11
	  	 Designated Beneficiary
	  	3
	 Section 1.12
	  	 Disability
	  	3
	 Section 1.13
	  	 Discretionary Contribution
	  	3
	 Section 1.14
	  	 Domestic Relations Order
	  	3
	 Section 1.15
	  	 Eligibility Computation Period
	  	4
	 Section 1.16
	  	 Effective Date
	  	4
	 Section 1.17
	  	 Eligible Employee
	  	4
	 Section 1.18
	  	 Eligible Participant
	  	4
	 Section 1.19
	  	 Employee
	  	4
	 Section 1.20
	  	 Employment Commencement Date
	  	4
	 Section 1.21
	  	 ERISA
	  	4
	 Section 1.22
	  	 Exchange Act
	  	4
	 Section 1.23
	  	 Fair Market Value
	  	4
	 Section 1.24
	  	 Financed Share
	  	5
	 Section 1.25
	  	 Five Percent Owner
	  	5
	 Section 1.26
	  	 Forfeitures
	  	5
	 Section 1.27
	  	 Former Participant
	  	5
	 Section 1.28
	  	 General Investment Account
	  	5
	 Section 1.29
	  	 Highly Compensated Employee
	  	5
	 Section 1.30
	  	 Hour of Service
	  	6
	 Section 1.31
	  	 Investment Account
	  	6
	 Section 1.32
	  	 Investment Fund
	  	6
	 Section 1.33
	  	 Loan Repayment Account
	  	6
	 Section 1.34
	  	 Loan Repayment Contribution
	  	6
	 Section 1.35
	  	 Maternity or Paternity Leave
	  	6
	 Section 1.36
	  	 Military Service
	  	7
	 Section 1.37
	  	 Named Fiduciary
	  	7
	 Section 1.38
	  	 Officer
	  	7
	 Section 1.39
	  	 One-Year Break in Service
	  	7

  

 i 

 Table of Contents 
  

					
	 	  	 	  	Page

	 Section 1.40
	  	 Participant
	  	7
	 Section 1.41
	  	 Participating Employer
	  	7
	 Section 1.42
	  	 Plan
	  	7
	 Section 1.43
	  	 Plan Administrator
	  	7
	 Section 1.44
	  	 Plan Year
	  	7
	 Section 1.45
	  	 Qualified Domestic Relations Order
	  	7
	 Section 1.46
	  	 Qualified Military Service
	  	8
	 Section 1.47
	  	 Qualified Participant
	  	8
	 Section 1.48
	  	 Retirement
	  	8
	 Section 1.49
	  	 Retroactive Contribution
	  	8
	 Section 1.50
	  	 Share
	  	8
	 Section 1.51
	  	 Share Acquisition Loan
	  	8
	 Section 1.52
	  	 Share Investment Account
	  	8
	 Section 1.53
	  	 Tender Offer
	  	8
	 Section 1.54
	  	 Total Compensation
	  	8
	 Section 1.55
	  	 Trust
	  	9
	 Section 1.56
	  	 Trust Agreement
	  	9
	 Section 1.57
	  	 Trust Fund
	  	9
	 Section 1.58
	  	 Trustee
	  	9
	 Section 1.59
	  	 Valuation Date
	  	9
	 Section 1.60
	  	 Year of Eligibility Service
	  	9
	 Section 1.61
	  	 Year of Vesting Service
	  	9
		
	Article II	  	 
		
	Participation	  	 
			
	 Section 2.1
	  	 Eligibility for Participation
	  	9
	 Section 2.2
	  	 Commencement of Participation
	  	10
	 Section 2.3
	  	 Termination of Participation
	  	10
		
	Article III	  	 
		
	Special Provisions	  	 
			
	 Section 3.1
	  	 Military Service
	  	11
	 Section 3.2
	  	 Maternity or Paternity Leave
	  	11
	 Section 3.3
	  	 Adjustments to Years of Eligibility Service
	  	12
	 Section 3.4
	  	 Leave of Absence
	  	12
	 Section 3.5
	  	 Family and Medical Leave
	  	12
	 Section 3.6
	  	 Service with Uniformed Forces
	  	12

  

 ii 

 Table of Contents 
  

					
	 	  	 	  	Page

	Article IV	  	 
		
	Contributions by Participants Not Permitted	  	 
			
	 Section 4.1
	  	 Contributions by Participants Not Permitted
	  	13
		
	Article V	  	 
		
	Contributions by the Employer	  	 
			
	 Section 5.1
	  	 In General
	  	13
	 Section 5.2
	  	 Loan Repayment Contributions
	  	13
	 Section 5.3
	  	 Discretionary Contributions
	  	14
	 Section 5.4
	  	 Contributions
	  	14
	 Section 5.5
	  	 Time and Manner of Payment
	  	14
		
	Article VI	  	 
		
	Share Acquisition Loans	  	 
			
	 Section 6.1
	  	 In General
	  	15
	 Section 6.2
	  	 Collateral; Liability for Repayment
	  	15
	 Section 6.3
	  	 Loan Repayment Account
	  	16
	 Section 6.4
	  	 Release of Financed Shares
	  	16
	 Section 6.5
	  	 Restrictions on Financed Shares
	  	17
		
	Article VII	  	 
		
	Allocation of Contributions	  	 
			
	 Section 7.1
	  	 Allocation Among Eligible Participants
	  	18
	 Section 7.2
	  	 Allocation of Released Shares or Other Property
	  	18
	 Section 7.3
	  	 Allocation of Discretionary Contributions
	  	18
		
	Article VIII	  	 
		
	Limitations on Allocations	  	 
			
	 Section 8.1
	  	 Optional Limitations on Allocations
	  	18
	 Section 8.2
	  	 General Limitations on Contributions
	  	19

  

 iii 

 Table of Contents 
  

					
	 	  	 	  	Page

		
	Article IX	  	 
		
	Vesting	  	 
			
	 Section 9.1
	  	 Vesting
	  	21
	 Section 9.2
	  	 Vesting on Death, Disability, Retirement or Change in Control
	  	21
	 Section 9.3
	  	 Forfeitures on Termination of Employment
	  	21
	 Section 9.4
	  	 Amounts Credited Upon Re-Employment
	  	22
	 Section 9.5
	  	 Allocation of Forfeitures
	  	22
		
	Article X	  	 
		
	The Trust Fund	  	 
			
	 Section 10.1
	  	 The Trust Fund
	  	22
	 Section 10.2
	  	 Investments
	  	22
	 Section 10.3
	  	 Distributions for Diversification of Investments
	  	23
	 Section 10.4
	  	 Use of Commingled Trust Funds
	  	24
	 Section 10.5
	  	 Management and Control of Assets
	  	24
		
	Article XI	  	 
		
	Valuation of Interests in the Trust Fund	  	 
			
	 Section 11.1
	  	 Establishment of Investment Accounts
	  	24
	 Section 11.2
	  	 Share Investment Accounts
	  	25
	 Section 11.3
	  	 General Investment Accounts
	  	25
	 Section 11.4
	  	 Valuation of Investment Accounts
	  	25
	 Section 11.5
	  	 Annual Statements
	  	25
		
	Article XII	  	 
		
	Shares	  	 
			
	 Section 12.1
	  	 Specific Allocation of Shares
	  	26
	 Section 12.2
	  	 Dividends
	  	26
	 Section 12.3
	  	 Voting Rights
	  	26
	 Section 12.4
	  	 Tender Offers
	  	28
		
	Article XIII	  	 
		
	Payment of Benefits	  	 
			
	 Section 13.1
	  	 In General
	  	30
	 Section 13.2
	  	 Designation of Beneficiaries
	  	30
	 Section 13.3
	  	 Distributions to Participants
	  	31
	 Section 13.4
	  	 Manner of Payment
	  	32
	 Section 13.5
	  	 Minimum Required Distributions
	  	32

  

 iv 

 Table of Contents 
  

					
	 	  	 	  	Page

	 Section 13.6
	  	 Direct Rollover of Eligible Rollover Distributions
	  	34
	 Section 13.7
	  	 Valuation of Shares Upon Distribution
	  	36
	 Section 13.8
	  	 Put Options
	  	36
	 Section 13.9
	  	 Right of First Refusal
	  	36
		
	Article XIV	  	 
		
	Change in Control	  	 
			
	 Section 14.1
	  	 Definition of Change in Control; Pending Change in Control
	  	37
	 Section 14.2
	  	 Vesting on Change of Control
	  	39
	 Section 14.3
	  	 Repayment of Share Acquisition Loan
	  	39
	 Section 14.4
	  	 Plan Termination After Change in Control
	  	40
	 Section 14.5
	  	 Amendment of Section XIV
	  	40
		
	Article XV	  	 
		
	Administration	  	 
			
	 Section 15.1
	  	 Named Fiduciaries
	  	40
	 Section 15.2
	  	 Plan Administrator
	  	40
	 Section 15.3
	  	 Committee Responsibilities
	  	42
	 Section 15.4
	  	 Claims Procedure
	  	43
	 Section 15.5
	  	 Claims Review Procedure
	  	43
	 Section 15.6
	  	 Allocation of Fiduciary Responsibilities and Employment of Advisors
	  	44
	 Section 15.7
	  	 Other Administrative Provisions
	  	44
		
	Article XVI	  	 
		
	Amendment, Termination and Tax Qualification	  	 
			
	 Section 16.1
	  	 Amendment and Termination by Charter Financial Corporation
	  	45
	 Section 16.2
	  	 Amendment or Termination Other Than by Charter Financial Corporation
	  	45
	 Section 16.3
	  	 Conformity to Internal Revenue Code
	  	45
	 Section 16.4
	  	 Contingent Nature of Contributions
	  	46
		
	Article XVII	  	 
		
	Special Rules for Top Heavy Plan Years	  	 
			
	 Section 17.1
	  	 In General
	  	46
	 Section 17.2
	  	 Definition of Top Heavy Plan
	  	47
	 Section 17.3
	  	 Determination Date
	  	47
	 Section 17.4
	  	 Cumulative Accrued Benefits
	  	47

  

 v 

 Table of Contents 
  

					
	 	  	 	  	Page

	 Section 17.5
	  	 Key Employees
	  	48
	 Section 17.6
	  	 Required Aggregation Group
	  	49
	 Section 17.7
	  	 Permissible Aggregation Group
	  	49
	 Section 17.8
	  	 Special Requirements During Top Heavy Plan Years
	  	49
		
	Article XVIII	  	 
		
	Miscellaneous Provisions	  	 
			
	 Section 18.1
	  	 Governing Law
	  	50
	 Section 18.2
	  	 No Right to Continued Employment
	  	50
	 Section 18.3
	  	 Construction of Language
	  	50
	 Section 18.4
	  	 Headings
	  	50
	 Section 18.5
	  	 Merger with Other Plans
	  	50
	 Section 18.6
	  	 Non-alienation of Benefits
	  	51
	 Section 18.7
	  	 Procedures Involving Domestic Relations Orders
	  	51
	 Section 18.8
	  	 Leased Employees
	  	52
	 Section 18.9
	  	 Status as an Employee Stock Ownership Plan
	  	 

  

 vi 

 EMPLOYEE STOCK OWNERSHIP PLAN 
  
 OF 
  
 CHARTER FINANCIAL CORPORATION 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 The following definitions shall apply for the purposes of the Plan, unless a different meaning is clearly indicated by the context: 
  
 Section 1.1 Account means an account established for each Participant to which is allocated such Participant’s share, if
any, of all Financed Shares and other property that are released from the Loan Repayment Account in accordance with section 6.4, together with his share, if any, of any Discretionary Contributions that may be made by a Participating Employer.

  
 Section 1.2 Affiliated Employer means the
Company; any corporation which is a member of a controlled group of corporations (as defined in section 414(b) of the Code) that includes the Company; any trade or business (whether or not incorporated) that is under common control (as defined in
section 414(c) of the Code) with the Company; any organization (whether or not incorporated) that is a member of an affiliated service group (as defined in section 414(m) of the Code) that includes the Company; any leasing organization (as defined
in section 414(n) of the Code) to the extent that any of its employees are required pursuant to section 414(n) of the Code to be treated as employees of the Company; and any other entity that is required to be aggregated with the Company pursuant to
regulations under section 414(o) of the Code. 
  
 Section
1.3 Allocation Compensation during any period means the compensation taken into account in determining the allocation of benefits and contributions among Participants and consists of the aggregate compensation received by an
Employee from the Employer or any Affiliated Employer with respect to such period that constitute wages within the meaning of section 3401 of the Code including compensation arising from the vesting of restricted stock award plus the amount by which
such Employee’s compensation with respect to such period has been reduced pursuant to a compensation reduction agreement under the terms of any of the following plans which may be maintained by the Employer: 
  
 (a) a qualified cash or deferred arrangement described in
section 401(k) of the Code; 
  
 (b) a salary
reduction simplified employee pension plan described in section 408(k) of the Code; 
  
 (c) a tax deferred annuity plan described in section 403(b) of the Code; or 
  

 1 

 (d) a cafeteria plan described in section 125 of the Code; or 
  
 (e) a qualified transportation fringe benefits plan
described in section 132 (f) of the Code. 
  
 In no event, however, shall an
Employee’s Allocation Compensation for any Plan year include any compensation in excess of $170,000 (in Plan Years beginning before January 1, 2002) and $200,000 (in Plan Years beginning after December 31, 2001). The $170,000 and $200,000
limitations set forth in the preceding sentence shall be indexed in accordance with regulations prescribed under section 401(a)(17) of the Code. If there are less than twelve (12) months in the Plan Year, the limitations (as adjusted) shall be
prorated by multiplying such limitation by a fraction, the numerator of which is the number of months in the Plan Year and the denominator of which is twelve (12). 
  
 Section 1.4 Bank means CharterBank and any successor thereto. 
  
 Section 1.5 Board means the Board of Directors of
Charter Financial Corporation. 
  
 Section 1.6
Beneficiary means the person or persons designated by a Participant or Former Participant or other person entitled to a benefit under the Plan, or otherwise determined to be entitled to a benefit under the Plan. If more than one person
is designated, each shall have an equal share unless the person making the designation directed otherwise. The word “person” includes an individual, a trust, an estate or any other person that is permitted to be named as a Beneficiary.

  
 Section 1.7 Change in Control means an
event described in section 14.1. 
  
 Section 1.8
Code means the Internal Revenue Code of 1986 (including the corresponding provisions of any succeeding law). 
  
 Section 1.9 Committee means the Compensation Committee described in section 15.3. 
  
 Section 1.10 Company means Charter Financial
Corporation, a Georgia corporation, and any successor thereto. 
  

 2 

 Section 1.11 Designated Beneficiary means a natural person designated by a
Participant or Former Participant as a Beneficiary under section 13.2 and shall not include any Beneficiary designated by a person other than a Participant or Former Participant or any Beneficiary other than a natural person. If a natural person is
the beneficiary of a trust which a Participant or Former Participant has named as his Beneficiary, such natural person shall be treated as a Designated Beneficiary if: (a) the trust is a valid trust under applicable state law (or would be a valid
trust except for the fact that it does not have a corpus); (b) the trust is irrevocable or will, by its terms, become irrevocable upon the death of the Participant or Former Participant; (c) the beneficiaries of the trust who are beneficiaries with
respect to the trust’s interest as a Beneficiary are identifiable from the terms of the trust instrument; and (d) the following information is furnished to the Committee: 
  
 (i) by the Participant or Former Participant, if any distributions are required to be made pursuant to
section 13.5 prior to the death of the Participant or Former Participant and (in the case of distributions after December 31, 2002 only) the Participant’s or Former Participant’s spouse is his sole primary Beneficiary, either: (A) a copy
of the trust instrument, together with a written undertaking by the Participant or Former Participant to furnish a copy of any subsequent amendment to the Committee within a reasonable time after such amendment is made; or (B)(I) a list of all of
the beneficiaries of the trust (including contingent and remainderman beneficiaries with a description of the conditions on their entitlement); (II) a certification of the Participant or Former Participant to the effect that, to the best of his
knowledge, such list is correct and complete and that the conditions of section 1.11(a), (b) and (c) are satisfied; (III) a written undertaking to provide a new certification to the extent that an amendment changes any information previously
certified; and (IV) a written undertaking to furnish a copy of the trust instrument to the Committee on demand; and 
  
 (ii) by the trustee of the trust within nine months after the death of the Participant or Former Participant (prior to January 1, 2003) or
by October 31st of the first calendar year that begins after the death of the Participant or Former Participant (subsequent to December 31, 2002), if any distributions are required to be made pursuant to section 13.5 after the death of the
Participant or Former Participant, either: (A) a copy of the actual trust instrument for the trust; or (B)(I) a final list of all of the beneficiaries of the trust (including contingent and remainderman beneficiaries with a description of the
conditions on their entitlement) as of the date of death (prior to January 1, 2003) or as of September 30th of the first calendar year that begins after the date of death (subsequent to December 31, 2002); (II) a certification of the trustee to the
effect that, to the best of his knowledge, such list is correct and complete and that the conditions of section 1.11(a), (b) and (c) are satisfied; and (III) a written undertaking to furnish a copy of the trust instrument to the Committee on demand.

  
 Section 1.12 Disability means a condition
of total incapacity, mental or physical, for further performance of duty with all Participating Employers, which the Committee shall have determined, on the basis of competent medical evidence, is likely to be permanent. 
  
 Section 1.13 Discretionary Contribution means Shares or
amounts of money contributed to the Plan by the Participating Employers in accordance with section 5.3. 
  
 Section 1.14 Domestic Relations Order means a judgment, decree or order (including the approval of a property settlement) that is
made pursuant to a state domestic relations or community property law and relates to the provision of child support, alimony payments, or marital property rights to a spouse, child or other dependent of a Participant or Former Participant.

  

 3 

 Section 1.15 Eligibility Computation Period means, with respect to any person, (a)
the 12-consecutive month period beginning on such person’s Employment Commencement Date and (b) each 12-consecutive month period that begins on an anniversary of such person’s Employment Commencement Date. 
  
 Section 1.16 Effective Date means October 16, 2001.

  
 Section 1.17 Eligible Employee means an
Employee who is eligible for membership in the Plan in accordance with Article II. 
  
 Section 1.18 Eligible Participant means, for any Plan Year, an Employee who is a Participant during all or any part of such Plan Year has completed a 1,000 Hours of Service for such Plan Year and
either remains a Participant on the last day of such Plan Year or terminated participation during such Plan Year on account of termination of employment due to death, Disability or Retirement; provided, however, that no Employee shall be an
Eligible Participant for the Plan Year that includes the effective date of the transaction pursuant to which the Bank becomes a wholly owned subsidiary of Charter Financial Corporation if he terminates employment for any reason with all
Participating Employers prior to such effective date. 
  
 Section 1.19 Employee means any person, including an officer, who is employed by any Affiliated Employer. 
  
 Section 1.20 Employment Commencement Date means the date on which a person first performs an Hour of Service, except that if an
Employee separates from service with the Employer, incurs a One-Year Break in Service and subsequently returns to service with the Employer, his Employment Commencement Date shall be the date on which he first performs an Hour of Service following
the One-Year Break in Service. 
  
 Section 1.21
ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time (including the corresponding provisions of any succeeding law). 
  
 Section 1.22 Exchange Act means the Securities Exchange Act of 1934, as amended from time to time
(including the corresponding provisions of any succeeding law). 
  
 Section 1.23 Fair Market Value on any date means: 
  
 (a) with respect to a Share: 
  
 (i) the final quoted sale price on the date in question (or, if there is no reported sale on such date, on the last preceding date on
which any reported sale occurred) of a Share as reported in the principal consolidated reporting system with respect to securities listed or admitted to trading on the principal United States securities exchange on which like Shares are listed or
admitted to trading; or 
  
 (ii) if like Shares
are not listed or admitted to trading on any such exchange, the closing bid quotation with respect to a Share on such 

  

 4 

 
date on the National Association of Securities Dealers Automated Quotation System, or, if no such quotation is provided, on another similar system, selected
by the Committee, then in use; or 
  
 (iii) if
sections 1.23(a)(i) and (ii) are not applicable, the fair market value of a Share as determined by an appraiser independent of the Employer and experienced and expert in the field of corporate appraisal. 
  
 (b) with respect to property other than Shares, the fair
market value determined in the manner selected by the Trustee. 
  
 Section 1.24 Financed Share means: (a) a Share that has been purchased with the proceeds of a Share Acquisition Loan, that has been allocated to the Loan Repayment Account in accordance with section 6.3 and that has not
been released in accordance with section 6.4; or (b) a Share that constitutes a dividend paid with respect to a Share described in section 1.24(a), that has been allocated to the Loan Repayment Account in accordance with section 6.3 and that has not
been released in accordance with section 6.4. 
  
 Section
1.25 Five Percent Owner means, for any Plan Year, a person who, during such Plan Year, owned (or was considered as owning for purposes of section 318 of the Code): (a) more than 5% of the value of all classes of outstanding stock
of any Affiliated Employer; or (b) stock possessing more than 5% of the combined voting power of all classes of outstanding stock of any Affiliated Employer. 
  
 Section 1.26 Forfeitures means the amounts forfeited by Participants and Former Participants on termination of employment prior to
full vesting, pursuant to section 9.3, less amounts credited because of re-employment, pursuant to section 9.4. 
  
 Section 1.27 Former Participant means a Participant whose participation in the Plan has terminated pursuant to section 2.3.

  
 Section 1.28 General Investment Account
means an Investment Account established and maintained in accordance with Article XI. 
  
 Section 1.29 Highly Compensated Employee means, for any Plan Year, an Employee who: 
  
 (i) was a Five Percent Owner at any time during such Plan Year or any prior Plan Year; or 
  
 (ii) received Total Compensation during the immediately
preceding Plan Year (A) in excess of $85,000 (or such other amount as may be prescribed by the Secretary of the Treasury pursuant to section 401(a)(17) of the Code); and (B) if elected by the Plan Administrator in such form and manner as the
Secretary of the Treasury may prescribe, in excess of the Total Compensation received for such preceding Plan Year by at least 80% of the Employees. 
  

 5 

 The determination of who is a Highly Compensated Employee will be made in accordance with section 414(q) of the Code and
the regulations thereunder. The Company has not elected to use the top 20% election mentioned in subparagraph (ii)(B) of this section. 
  
 Section 1.30 Hour of Service means each hour for which a person is paid, or entitled to payment, for the performance of duties for
any Affiliated Employer, plus: 
  
 (a) each hour
for which such person is paid, or entitled to payments by an Affiliated Employer on account of a period during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty, or
leave of absence. Hours under this section 1.30(a) shall be calculated and credited pursuant to section 2530.200b-2 of the Department of Labor’s regulations (or any successor regulation), which are incorporated herein by reference; and

  
 (b) each hour for which back pay,
irrespective of mitigation of damages, is either awarded or agreed to by any Affiliated Employer; provided, however, that such hours have not previously been credited under other provisions of this section 1.30; and provided, further,
that not more than 501 Hours of Service shall be credited under section 1.30(a) to such person on account of a single continuous period during which such person performs no duties for an Affiliated Employer whether or not such period occurs in a
single Plan Year. Hours under this section 1.30(b) shall be credited to the person for the Eligibility or Vesting Computation Period or Eligibility or Vesting Computation Periods to which the award or agreement pertains, rather than the Eligibility
or Vesting Computation Period in which the award, agreement or payment is made. 
  
 Anything in this section 1.30 to the contrary notwithstanding, no Hours of Service shall be credited for a payment made or due under a plan maintained solely for the purpose of complying with applicable workmen’s compensation or
disability insurance laws, or a payment which solely reimburses any person for medical or medically-related expenses incurred by such person. 
  
 Section 1.31 Investment Account means either a General Investment Account or a Share Investment Account. 
  
 Section 1.32 Investment Fund means any one of the three
or more funds as may be established from time to time by the Committee which, together with any and all Shares and other investments held under the Plan, constitute the Trust Fund. 
  
 Section 1.33 Loan Repayment Account means an account established and maintained in accordance with
section 6.3. 
  
 Section 1.34 Loan Repayment
Contribution means amounts of money contributed to the Plan by the Participating Employers in accordance with section 5.2. 
  
 Section 1.35 Maternity or Paternity Leave means a person’s absence from work for all Affiliated Employers: (a) by reason of the
pregnancy of such person; (b) by reason of the birth of a child of such person; (c) by reason of the placement of a child with the person in 

  

 6 

 
connection with the adoption of such child by such person; or (d) for purposes of caring for a child of such person immediately following the birth of the
child or the placement of the child with such person. 
  
 Section 1.36 Military Service means service in the armed forces of the United States, including but not limited to Qualified Military Service. It may also include, if and to the extent that the Board so provides and if
all Participants and Former Participants in like circumstances are similarly treated, special service for the government of the United States and other public service. 
  
 Section 1.37 Named Fiduciary means any person, committee, corporation or organization described in
section 15.1. 
  
 Section 1.38 Officer means
an Employee who is an administrative executive in regular and continued service with any Affiliated Employer; provided, however, that at no time shall more than the lesser of (a) 50 Employees or (b) the greater of (i) 3 Employees or (ii) 10%
of all Employees be treated as Officers. The determination of whether an Employee is to be considered an Officer shall be made in accordance with section 416(i) of the Code. 
  
 Section 1.39 One-Year Break in Service means an Eligibility or Vesting Computation Period during which
an Employee fails to complete more than 500 Hours of Service. 
  
 Section 1.40 Participant means any person who has satisfied the eligibility requirements set forth in section 2.1, who has become a Participant in accordance with section 2.2, and whose membership has not terminated
under section 2.3. 
  
 Section 1.41 Participating
Employer means the Bank, and any successor thereto and any other Affiliated Employer which, with the prior written approval of the Board of Directors of Charter Financial Corporation and subject to such terms and conditions as may be imposed
by the Board of Directors of Charter Financial Corporation, shall adopt this Plan. 
  
 Section 1.42 Plan means the Employee Stock Ownership Plan of Charter Financial Corporation, as amended from time to time. 
  
 Section 1.43 Plan Administrator means the Committee or any person, committee, corporation or
organization designated in section 15.2, or appointed pursuant to section 15.2, to perform the responsibilities of that office. 
  
 Section 1.44 Plan Year means the period commencing on January 1, 2001 and ending on December 31, 2001 and each fiscal year ending on
each December 31st thereafter. 
  
 Section 1.45
Qualified Domestic Relations Order means a Domestic Relations Order that: (a) clearly specifies (i) the name and last known mailing address of the Participant or Former Participant and of each person given rights under such Domestic
Relations Order, (ii) the amount or percentages of the Participant’s or Former Participant’s benefits under this Plan to be paid to each person covered by such Domestic Relations Order, (iii) the number of payments or the period to which
such Domestic Relations Order applies, and (iv) the name of this Plan; and 

  

 7 

 
(b) does not require the payment of a benefit in a form or amount that is (i) not otherwise provided for under the Plan, or (ii) inconsistent with a previous
Qualified Domestic Relations Order. 
  
 Section 1.46
Qualified Military Service means with respect to any person on any date, any service in the uniformed services of the United States (as defined in chapter 43 of Title 38 of the United States Code) completed prior to such date, but only
if, on such date, such person is entitled to re-employment rights with respect to an Affiliated Employer on account of such service. 
  
 Section 1.47 Qualified Participant means a Participant who has attained age 55 and who has been a Participant of the Plan for at
least 10 years. 
  
 Section 1.48 Retirement
means: (a) any termination of membership in the Plan at or after attainment of age 65; and (b) any retirement under an applicable qualified defined benefit plan of the Employer as in effect from time to time with entitlement to a normal or early
(but not vested, whether immediate or deferred) retirement allowance. 
  
 Section 1.49 Retroactive Contribution means a contribution made on a retroactive basis in respect of a period of Qualified Military Service in accordance with section 5.4. 
  
 Section 1.50 Share means a share of any class of stock
issued by any Affiliated Employer; provided however, that such share is (i) a “qualifying employer security” within the meaning of section 407(d)(5) of ERISA and (ii) is an “employer security” within the meaning of section 409(l)
of the Code which is defined to be the common stock issued by an Affiliated Employer (or by a corporation which is a member of the same controlled group) which is readily tradeable on an established securities market. 
  
 Section 1.51 Share Acquisition Loan means a loan
obtained by the Trustee in accordance with Article VI. 
  
 Section 1.52 Share Investment Account means an Investment Account established and maintained in accordance with Article XI. 
  
 Section 1.53 Tender Offer means a tender offer made to holders of any one or more classes of Shares generally, or any other offer
made to holders of any one or more classes of Shares generally to purchase, exchange, redeem or otherwise transfer Shares, whether for cash or other consideration whether or not such offer constitutes a “tender offer” or an “exchange
offer” for purposes of the Exchange Act. 
  
 Section
1.54 Total Compensation during any period means an Employee’s aggregate total compensation paid by the Employer and any Affiliated Employer with respect to such period that constitutes wages within the meaning of section 3401
of the Code, plus any amounts by which the Employee’s compensation paid by the Employer or any Affiliated Employer has been reduced pursuant to a compensation reduction agreement under the terms of any qualified cash or deferred arrangement
described in section 401(k) of the Code, any salary reduction simplified employee pension plan described in section 408(k) of the Code, any tax 

  

 8 

 
deferred annuity plan described in section 403(b) of the Code, any cafeteria plan described in section 125 of the Code and any salary reduction contributions
under any qualified transportation fringe benefit plan described in section 132(f) of the Code. In no event, however, shall an Employee’s Total Compensation for any calendar year include any compensation in excess of the amount permitted under
section 401(a)(17) of the Code. In addition, for Limitation Years after 1997, each Employee’s Total Compensation shall include any amounts by which the Employee’s compensation paid by the Employer or any Affiliated Employer has been
reduced pursuant to a compensation reduction agreement under the terms of any plan described in section 457 of the Code. 
  
 Section 1.55 Trust means the legal relationship created by the Trust Agreement pursuant to which the Trustee holds the Trust Fund in
trust. 
  
 Section 1.56 Trust Agreement means
the agreement between the Bank and the Trustee therein named or its successors pursuant to which the Trust Fund shall be held in trust. 
  
 Section 1.57 Trust Fund means the corpus (consisting of contributions paid over to the Trustee and investments thereof), and all
earnings, appreciation or additions thereof and thereto, held by the Trustee under the Trust Agreement in accordance with the Plan, less any depreciation thereof and any payments made therefrom pursuant to the Plan. 
  
 Section 1.58 Trustee means the Trustee of the Trust Fund
from time to time in office. The Trustee shall serve as Trustee until it is removed or resigns from office and is replaced by a successor Trustee appointed in accordance with the terms of the Trust Agreement. 
  
 Section 1.59 Valuation Date means the last business day
of each Plan Year and such other dates as the Plan Administrator may prescribe. 
  
 Section 1.60 Year of Eligibility Service means an Eligibility Computation Period during which the Employee completed at least 1,000 Hours of Service. 
  
 Section 1.61 Year of Vesting Service means a Vesting
Computation Period during which the Employee completed at least 1,000 Hours of Service. 
  
 ARTICLE II 
  
 PARTICIPATION 
  
 Section 2.1
Eligibility for Participation. 
  
 (a)
Only Eligible Employees may be or become Participants of the Plan. An Employee shall be an Eligible Employee if he (i) is employed by one or more Participating Employers; (ii) has attained age 201⁄2; (iii) has completed at least three months of
Service; and (iv) is not excluded under section 2.1(b). 
  

 9 

 (b) An Employee is not an Eligible Employee if he: 
  
 (i) does not receive Allocation Compensation from at least
one Participating Employer; 
  
 (ii) is an
Employee who has waived any claim to participation in the Plan; 
  
 (iii) is an Employee or in a unit of Employees covered by a collective bargaining agreement with the Employer where retirement benefits were the subject of good faith bargaining, unless such agreement expressly
provides that Employees such as he be covered under the Plan; 
  
 (iv) is a “leased employee” as defined in section 18.8(a); or 
  
 (v) is classified as an “independent contractor” by the Employer, even if considered a common-law employee under applicable law.

  
 For purposes of eligibility and vesting in this Plan but not for purposes of
benefit accrual, an employee of EBA Bancshares, Inc. and/or Eagle Bank of Alabama who is an employee of the Bank or the Company following the acquisition of these entities by the Bank and the Company shall be treated as an Employee of the Bank and
shall be credited with Eligibility Service and Vesting Service for service to EBA Bancshares, Inc. and/or Eagle Bank of Alabama as if service to these entities was service to the Bank. Such persons must otherwise satisfy the eligibility criteria of
this Article in order to participate in this Plan and are otherwise subject to the terms of this Plan. 
  
 Section 2.2 Commencement of Participation. 
  

Every Employee who is an Eligible Employee on the effective date of the transaction whereby the Bank becomes a wholly owned subsidiary of Charter
Financial Corporation shall automatically become a Participant as of the Effective Date. An Employee who becomes an Eligible Employee after the Effective Date shall automatically become a Participant on the January 1 or July 1 coincident with or
next following the date on which he becomes an Eligible Employee. 
  
 Section 2.3 Termination of Participation. 
  
 Participation in the Plan shall cease, and a Participant shall become a Former Participant, upon termination of employment with all Participating Employers, death, Disability or Retirement, failure to return to work upon the expiration of a
leave of absence granted pursuant to section 3.4, becoming an Employee who is excluded under section 2.1(b) or distribution of the entire vested interest in his Account. 
  

 10 

 ARTICLE III 
  
 SPECIAL PROVISIONS 
  
 Section 3.1 Military Service. 
  
 In the case of a termination of employment of any Employee to enter directly into Military Service, the entire period of his absence shall be treated, for
purposes of vesting and eligibility for participation (but not, except as required by law, for purposes of eligibility to share in allocations of contributions in accordance with Article VII), as if he had worked for the Employer during the period
of his absence. In the event of the re-employment of such person by the Employer within a period of not more than six months: 
  
 (a) after he becomes entitled to release or discharge, if he has entered into the armed forces; or 
  
 (b) after such service terminates, if he has entered into other service
defined as Military Service; 
  
 such period, also, shall be deemed to be Military
Service. 
  
 Section 3.2 Maternity or Paternity
Leave. 
  
 (a) Subject to section 3.2(c), in the
event of an Employee’s absence from work in the service of the Employer and all Affiliated Employers for a period: 
  
 (i) that commences on or after October 1, 1985; 
  

(ii) for which the person is not paid or entitled to payment by the Employer or any Affiliated Employer; and 
  
 (iii) that constitutes Maternity or Paternity Leave;

  
 then the rules of section 3.2(b) shall apply. 
  
 (b) In cases of absence described in section 3.2(a), solely for purposes of
determining whether a One-Year Break in Service has occurred, the person shall be credited for the period of an absence described in section 3.2(a) with the number of Hours of Service equal to the lesser of: 
  
 (i)(A) the number of Hours of Service that would have been
credited to the person if he had continued working for the Bank or an Affiliated Employer during the period of such absence, or (B) if the number of Hours of Service prescribed under section 3.2(b)(i)(A) cannot be determined, 8 Hours of Service for
each working day during the period of absence; or 
  
 (ii) 501 Hours of Service. 
  

 11 

 Such credit shall be given during the Computation Period during which such absence began, if necessary to
prevent a One-Year Break in Service from occurring during such Computation Period, and in all other cases, such credit shall be given during the immediately following Computation Period. 
  
 (c) Notwithstanding anything in the Plan to the contrary, this section 3.2 shall not apply unless the person furnishes to
the Plan Administrator such information as the Plan Administrator may reasonably require in order to establish (i) that the person’s absence is one described in section 3.2(a), and (ii) the number of working days during such absence.

  
 Section 3.3 Adjustments to Years of Eligibility
Service. 
  
 The Years of Eligibility Service of an
Employee who returns to the employment of the Employer or any Affiliated Employer following a separation from service shall include his Years of Eligibility Service prior to such separation from service, and such an Employee shall be readmitted to
participation immediately upon his return to service if he is then an Eligible Employee. 
  
 Section 3.4 Leave of Absence. 
  
 In the event of temporary absence from work in the service of the Employer and all Affiliated Employers for any period for which a Participant shall have been granted a leave of absence by the Employer, the entire
period of his absence shall be treated for purposes of vesting and eligibility for participation (but not for purposes of eligibility to share in the allocation of contributions in accordance with Article VII), as if he had worked for the Employer
during the period of his absence. Absence from work for a period greater than, or failure to return to work upon the expiration of, the period of leave of absence granted by the Employer shall terminate participation in the Plan as of the date on
which such period ended. In granting leaves of absence for purposes of the Plan, all Employees in like circumstances shall be similarly treated. 
  
 Section 3.5 Family and Medical Leave. 
  

In the event of absence for a period recognized a family and medical leave under the federal Family and Medical Leave Act of 1992, the period of such
absence shall be recognized for purposes of vesting and eligibility to participate to the full extent required by law. 
  
 Section 3.6 Service with Uniformed Forces. 
  
 Periods of service with the uniformed forces of the United States shall be treated in the manner required pursuant to
section 414(u) of the Code. 
  

 12 

 ARTICLE IV 
  

CONTRIBUTIONS BY PARTICIPANTS NOT PERMITTED 
  
 Section 4.1 Contributions by Participants Not Permitted. 
  
 Participants shall not be required, nor shall they be permitted, to make contributions to the Plan. 
  
 ARTICLE V 
  
 CONTRIBUTIONS BY THE EMPLOYER 
  

Section 5.1 In General. 
  
 Subject to the limitations of Article VIII, for each Plan Year, the Participating Employers shall contribute to the Plan the amount, if any, determined by
the Board of Directors of Charter Financial Corporation, but in no event less than the amount described in section 5.2(a). The amount contributed for any Plan Year shall be treated as a Loan Repayment Contribution, a Discretionary Contribution, or a
combination thereof, in accordance with the provisions of this Article V. 
  
 Section 5.2 Loan Repayment Contributions. 
  
 For each Plan Year, a portion of the Participating Employers’ contributions, if any, to the Plan equal to the sum of: 
  
 (a) the minimum amount required to be added to the Loan
Repayment Account in order to provide adequate funds for the payment of the principal and interest then required to be repaid under the terms of any outstanding Share Acquisition Loan obtained by the Trustee; plus 
  
 (b) the additional amount, if any, designated by the
Committee to be applied to the prepayment of principal or interest under the terms of any outstanding Share Acquisition Loan obtained by the Trustee; 
  
 shall be treated as a Loan Repayment Contribution for such Plan Year. A Loan Repayment Contribution for a Plan Year shall be allocated to the Loan Repayment Account and
shall be applied by the Trustee, in the manner directed by the Committee, to the payment of accrued interest and to the reduction of the principal balance of any Share Acquisition Loan obtained by the Trustee that is outstanding on the date on which
the Loan Repayment Contribution is made. To the extent that a Loan Repayment Contribution for a Plan Year results in a release of Financed Shares in accordance with section 6.4, such Shares shall be allocated among the Accounts of Eligible
Participants for such Plan Year in accordance with section 7.2. 
  

 13 

 Section 5.3 Discretionary Contributions. 
  
 In the event that the amount of the Participating Employers’
contributions to the Plan for a Plan Year exceeds the amount of the Loan Repayment Contributions for such Plan Year, such excess shall be treated as a Discretionary Contribution and shall be allocated among the Accounts of the Eligible Participants
for such Plan Year in accordance with section 7.3. 
  
 Section
5.4 Contributions. 
  
 A Participating
Employer shall make a Retroactive Contribution in respect of any individual previously employed by it who is re-employed by any Affiliated Employer after December 12, 1994 following the completion of a period of Qualified Military Service. Such
Retroactive Contribution shall be made in the following manner for each Plan Year that includes any part of the period of Qualified Military Service: 
  
 (a) An allocation percentage shall be computed by dividing (i) the sum of the Fair Market Value of all Financed Shares allocated to
Eligible Participants for such Plan Year plus the dollar amount of all Discretionary Contributions made in cash for such Plan Year plus the Fair Market Value of all Discretionary Contributions made in Shares for such Plan Year, divided by (ii) the
aggregate amount of Allocation Compensation used in the allocation for such Plan Year. Fair Market Value for such purposes shall be determined as of the last day of the Plan Year. 
  
 (b) A notional allocation shall be determined by multiplying (A) the percentage determined under section
5.4(a) by (B) the Allocation Compensation which the individual would have had for such Plan Year if he had remained in the service of his Participating Employer in the same capacity and earning Allocation Compensation and Total Compensation at the
annual rates in effect immediately prior to the commencement of the Qualified Military Leave (or, if such rates are not reasonably certain, at an annual rate equal to the actual Allocation Compensation and Total Compensation, respectively, paid to
him for the 12-month period immediately preceding the Qualified Military Service). 
  
 (c) An actual Retroactive Contribution for the Plan Year shall be determined by computing the excess of (A) the notional allocation
determined under section 5.4(b) over (B) the sum of the dollar amount of any Discretionary Contribution in cash, the Fair Market Value of any Discretionary Contribution in Shares and the Fair Market Value of any Financed Shares actually allocated to
such individual for such Plan Year. 
  
 Section 5.5
Time and Manner of Payment. 
  
 (a)
Payment of contributions made pursuant to this Article V shall be made: (i) in cash, in the case of a Loan Repayment Contribution; and (ii) in cash, in Shares, or in a combination of cash and Shares, in the case of an Discretionary Contribution or a
Retroactive Contribution. 
  

 14 

 (b) Contributions made pursuant to this Article V for a Plan Year shall be paid to the Trust Fund on or
before the due date (including any extensions thereof) of the Employer’s federal income tax return for its taxable year during which such Plan Year ends. All such contributions shall be allocated to the Accounts of the Eligible Participants in
the case of a Discretionary Contribution, to the Account of the Participant for whom it is made in the case of a Retroactive Contribution, and to the Loan Repayment Account in the case of a Loan Repayment Contribution, as soon as is practicable
following the payment thereof to the Trust Fund. 
  
 ARTICLE VI

  
 SHARE ACQUISITION LOANS 
  
 Section 6.1 In General. 
  
 The Committee may, with the prior approval of the Board of Directors of
Charter Financial Corporation, direct the Trustee to obtain a Share Acquisition Loan on behalf of the Plan, the proceeds of which shall be applied on the earliest practicable date: 
  
 (a) to purchase Shares; or 
  
 (b) to make payments of principal or interest, or a combination of principal and interest, with respect to
such Share Acquisition Loan; or 
  
 (c) to make
payments of principal and interest, or a combination of principal and interest, with respect to a previously obtained Share Acquisition Loan that is then outstanding. 
  
 Any such Share Acquisition Loan shall be obtained on such terms and conditions as the Committee may approve; provided, however, that
such terms and conditions shall provide for the payment of interest at no more than a reasonable rate and shall permit such Share Acquisition Loan to satisfy the requirements of section 4975(d)(3) of the Code and section 408(b)(3) of ERISA.

  
 Section 6.2 Collateral; Liability for
Repayment. 
  
 (a) The Committee may direct the
Trustee to pledge, at the time a Share Acquisition Loan is obtained, the following assets of the Plan as collateral for such Share Acquisition Loan: 
  
 (i) any Shares purchased with the proceeds of such Share Acquisition Loan and any earnings attributable thereto; 
  
 (ii) any Financed Shares then pledged as collateral for a
prior Share Acquisition Loan which is repaid with the proceeds of such Share Acquisition Loan and any earnings attributable thereto; and 
  

 15 

 (iii) pending the application thereof to purchase Shares or repay a prior Share
Acquisition Loan, the proceeds of such Share Acquisition Loan and any earnings attributable thereto. 
  
 Except as specifically provided in this section 6.2(a), no assets of the Plan shall be pledged as collateral for the repayment of any Share Acquisition Loan. 
  
 (b) No person entitled to payment under a Share Acquisition Loan shall have
any right to the assets of the Plan except for: 
  
 (i) Financed Shares that have been pledged as collateral for such Share Acquisition Loan pursuant to section 6.2(a); 
  
 (ii) Loan Repayment Contributions made pursuant to section 5.2; and 
  
 (iii) earnings attributable to Financed Shares described in section 6.2(b)(i) and to Loan Repayment
Contributions described in section 6.2(b)(ii). 
  
 Except in the event of a
default or a refinancing pursuant to which an existing Share Acquisition Loan is repaid or as provided in section 14.3, the aggregate amount of all payments of principal and interest made by the Trustee with respect to all Share Acquisition Loans
obtained on behalf of the Plan shall at no time exceed the aggregate amount of all Loan Repayment Contributions theretofore made plus the aggregate amount of all earnings (other than dividends paid in the form of Shares) attributable to Financed
Shares and to such Loan Repayment Contributions. 
  
 (c) Any Share
Acquisition Loan shall be without recourse against the Plan and Trust. 
  
 Section 6.3 Loan Repayment Account. 
  
 In the event that one or more Share Acquisition Loans shall be obtained, a Loan Repayment Account shall be established under the Plan. The Loan Repayment Account shall be credited with all Shares acquired with the
proceeds of a Share Acquisition Loan, all Loan Repayment Contributions and all earnings (including dividends paid in the form of Shares) or appreciation attributable to such Shares and Loan Repayment Contributions. The Loan Repayment Account shall
be charged with all payments of principal and interest made by the Trustee with respect to any Share Acquisition Loan, all Shares released in accordance with section 6.4 and all losses, depreciation or expenses attributable to Shares or to other
property credited thereto. The Financed Shares, as well as any earnings thereon, shall be allocated to such Loan Repayment Account and shall be accounted for separately from all other amounts or property contributed under the Plan. 
  
 Section 6.4 Release of Financed Shares.

  
 As of the last day of each Plan Year during which a Share
Acquisition Loan is outstanding, a portion of the Financed Shares purchased with the proceeds of such Share Acquisition Loan and allocated to the Loan Repayment Account shall be released. The number 

  

 16 

 
of Financed Shares released in any such Plan Year shall be equal to the amount determined according to one of the following methods: 
  
 (a) by computing the product of: (i) the number of Financed
Shares purchased with the proceeds of such Share Acquisition Loan and allocated to the Loan Repayment Account immediately before the release is effected; multiplied by (ii) a fraction, the numerator of which is the aggregate amount of the principal
and interest payments (other than payments made upon the refinancing of a Share Acquisition Loan as contemplated by section 6.1(c)) made with respect to such Share Acquisition Loan during such Plan Year, and the denominator of which is the aggregate
amount of all principal and interest remaining to be paid with respect to such Share Acquisition Loan as of the first day of such Plan Year; or 
  
 (b) by computing the product of: (i) the number of Financed Shares purchased with the proceeds of such Share Acquisition Loan and
allocated to the Loan Repayment Account immediately before the release is effected; multiplied by (ii) a fraction, the numerator of which is the aggregate amount of the principal payments (other than payments made upon the refinancing of a Share
Acquisition Loan as contemplated by section 6.1(c)) made with respect to such Share Acquisition Loan during such Plan Year, and the denominator of which is the aggregate amount of all principal remaining to be paid with respect to such Share
Acquisition Loan as of the first day of such Plan Year; provided, however, that the method described in this section 6.4(b) may be used only if the Share Acquisition Loan does not extend for a period in excess of 10 years after the date of
origination and only to the extent that principal payments on such Share Acquisition Loan are made at least as rapidly as under a loan of like principal amount with a like interest rate and term requiring level amortization of principal and
interest. 
  
 Unless otherwise specified in the governing documents, the method to
be used shall be that described in this section 6.4(a). In the event that property other than, or in addition to, Financed Shares shall be held in the Loan Repayment Account and pledged as collateral for a Share Acquisition Loan, then the property
to be released pursuant to this section 6.4 shall be property having a Fair Market Value determined by applying the method to be used to the Fair Market Value of all property pledged as collateral for such Share Acquisition Loan; provided,
however, that no property other than Financed Shares shall be released pursuant to this section 6.4 unless all Financed Shares have previously been released. 
  
 Section 6.5 Restrictions on Financed Shares. 
  
 Except to the extent required under any applicable law, rule or regulation,
no Shares purchased with the proceeds of a Share Acquisition Loan shall be subject to a put, call or other option, or to any buy-sell or similar arrangement, while held by the Trustee or when distributed from the Plan. The provisions of this section
6.5 shall continue to apply in the event that this Plan shall cease to be an employee stock ownership plan, within the meaning of section 4975(e)(7) of the Code. 
  

 17 

 ARTICLE VII 
  
 ALLOCATION OF CONTRIBUTIONS 
  

Section 7.1 Allocation Among Eligible Participants. 
  
 Subject to the limitations of Article VIII, Discretionary Contributions for a Plan Year made in accordance with section 5.3
and Financed Shares and other property that are released from the Loan Repayment Account for a Plan Year in accordance with section 6.4 shall be allocated among the Eligible Participants for such Plan Year, in the manner provided in this Article
VII. 
  
 Section 7.2 Allocation of Released Shares or
Other Property. 
  
 Subject to the limitations of
Article VIII, in the event that Financed Shares or other property are released from the Loan Repayment Account for a Plan Year in accordance with section 6.4, such released Shares or other property shall be allocated among the Accounts of the
Eligible Participants for the Plan Year in the proportion that each such Eligible Participant’s Allocation Compensation for the portion of such Plan Year during which he was a Participant bears to the aggregate of such Allocation Compensation
of all Eligible Participants for such Plan Year. 
  
 Section
7.3 Allocation of Discretionary Contributions. 
  
 Subject to the limitations of Article VIII, in the event that the Participating Employers make Discretionary Contributions for a Plan Year, such Discretionary Contributions shall be allocated among the Accounts of the Eligible Participants
for such Plan Year in the proportion that each such Eligible Participant’s Allocation Compensation for the portion of such Plan Year during which he was a Participant bears to the aggregate of such Allocation Compensation of all Eligible
Participants for such Plan Year. 
  
 ARTICLE VIII

  
 LIMITATIONS ON ALLOCATIONS 
  
 Section 8.1 Optional Limitations on Allocations.

  
 If, for any Plan Year, the application of sections 7.2 and
7.3 would result in more than one-third of the number of Shares or of the amount of money or property to be allocated thereunder being allocated to the Accounts of Eligible Participants for such Plan Year who are also Highly Compensated Employees
for such Plan Year, then the Committee may, but shall not be required to, direct that this section 8.1 shall apply in lieu of sections 7.2 and 7.3. If the Committee gives such a direction, then the Committee shall impose a maximum dollar limitation
on the amount of Allocation Compensation that may be taken into account for each Eligible Participant. The dollar limitation which shall be imposed shall be the limitation which produces the result that the aggregate Allocation Compensation taken
into account for Eligible Participant who are Highly Compensated Employees, constitutes exactly one-third of the aggregate Allocation Compensation taken into account for all Eligible Participants. 
  

 18 

 Section 8.2 General Limitations on Contributions. 
  
 (a) Notwithstanding any other provisions of the Plan, no amount shall be
allocated to a Participant’s Account for any Limitation Year to the extent that such allocation would result in an Annual Addition of an amount exceeding: 
  

(i) for Limitation Years beginning before January 1, 2002, the lesser of (A) $30,000 (or such other amount as is permissible under
section 415(c)(1)(A) of the Code), or (ii)(B) twenty-five percent (25%) of the Participant’s Total Compensation paid during such Limitation Year; and 
  
 (ii) for Limitation Years beginning after December 31, 2001, the lesser of (A) $40,000 (or such other amount as is permissible under
section 415(c)(1)(A) of the Code), or (B) one hundred percent (100%) of the Participant’s Total Compensation paid during such Limitation Year. 
  
 (b) For purposes of this section 8.2, the following special definitions shall apply: 
  
 (i) Annual Addition means the sum of the following amounts allocated on behalf of a
Participant for a Limitation Year: 
  
 (A) all
contributions by the Employer (including contributions made under a salary reduction agreement pursuant to sections 401(k), 408(k) or 403(b) of the Code) under any qualified defined contribution plan or simplified employee pension (other than this
Plan) maintained by the Employer, as well as the Participant’s allocable share, if any, of any forfeitures under such plans as well as all amounts allocated to an individual medical benefit account, as defined in section 415(l)(2) of the Code,
which is part of a pension or annuity plan maintained by the Employer; plus 
  
 (B)(I) for Limitation Years that begin prior to January 1, 1987, the lesser of (1) one-half of all nondeductible voluntary contributions under any other qualified defined contribution plan (whether or not terminated)
maintained by the Employer, or (2) the amount of the nondeductible voluntary contributions under qualified defined contribution plan (whether or not terminated) maintained by the Employer in excess of 6% of such Participant’s Total
Compensation; and (II) for Limitation Years that begin after December 31, 1986, the sum of all of the nondeductible voluntary contributions under any other qualified defined contribution plan (whether or not terminated) maintained by the Employer;

  
 (C) all Discretionary Contributions under
this Plan; plus 
  
 (D) except as hereinafter
provided in this section 8.2(b)(i), a portion of the Employer’s Loan Repayment Contributions to the Plan for such Limitation Year which bears the same proportion to the total amount 

  

 19 

 
of the Employer’s Loan Repayment Contributions for the Limitation Year that the number of Shares (or the Fair Market Value of property other than
Shares) allocated to the Participant’s Account pursuant to section 7.2 or 8.1, whichever is applicable, bears to the aggregate number of Shares (or Fair Market Value of property other than Shares) so allocated to all Participants for such
Limitation Year. 
  
 Notwithstanding section 8.2(b)(i)(D), if,
for any Limitation Year, the aggregate amount of Discretionary Contributions allocated to the Accounts of the individuals who are Highly Compensated Employees for such Limitation Year, when added to such Highly Compensated Employees’ allocable
share of any Loan Repayment Contributions for such Limitation Year, does not exceed one-third of the total of all Discretionary Contributions and Loan Repayment Contributions for such Limitation Year, then that portion, if any, of the Loan Repayment
Contributions for such Limitation Year that is applied to the payment of interest on a Share Acquisition Loan shall not be included as an Annual Addition. In no event shall any Financed Shares, any dividends or other earnings thereon, any proceeds
of the sale thereof or any portion of the value of the foregoing be included as an Annual Addition. In Limitation Years beginning after December 31, 2001, catch-up elective deferrals under section 414(v) of the Code shall not be included as Annual
Additions. 
  
 (ii) Employer means
Charter Financial Corporation, and all members of a controlled group of corporations, as defined in section 414(b) of the Code, as modified by section 415(h) of the Code, all commonly controlled trades or businesses, as defined in section 414(c) of
the Code, as modified by section 415(h) of the Code, all affiliated service groups, as defined in section 414(m) of the Code, of which Charter Financial Corporation is a member, as well as any leasing organization, as defined in section 18.8, that
employs any person who is considered an employee under section 18.8 and any other entity that is required to be aggregated with the Employer pursuant to regulations under section 414(o) of the Code. 
  
 (iii) Limitation Year means the Plan Year.

  
 (c) When an individual’s Annual Addition to this Plan
must be reduced to satisfy the limitations of section 8.2(a), such reduction shall be applied to Discretionary Contributions and to Shares allocated as a result of a Loan Repayment Contribution which are included as an Annual Addition in such order
as shall result in the smallest reduction in the number of Shares allocable to the Individual’s Account. The amount by which any Individual’s Annual Addition to this Plan is reduced shall be allocated in accordance with Articles V and VII
as a contribution by the Participating Employers in the next succeeding Limitation Year. 
  
 (d) Prior to determining an individual’s actual Total Compensation for a Limitation Year, the Participating Employer may determine the limitations under this section 8.2 

  

 20 

 
for an individual on the basis of a reasonable estimation of the individual’s Total Compensation for the Limitation Year that is uniformly determined
for all individuals who are similarly situated. As soon as it is administratively feasible after the end of the Limitation Year, the limitations of this section 8.2 shall be determined on the basis of the individual’s actual Total Compensation
for the Limitation Year. 
  
 ARTICLE IX 
  
 VESTING 
  
 Section 9.1 Vesting. 
  
 Subject to the provisions of sections 9.2 and 14.1(a), the balance credited to each Participant’s Account shall become
vested in accordance with the following schedule: 
  

				
	 Years of Vesting Service

	  	Vested
Percentage

	 
	 less than 5 years
	  	0	%
	 5 or more years
	  	100	%

  
 Section 9.2
Vesting on Death, Disability, Retirement or Change in Control. 
  
 Any previously unvested portion of the remainder of the balance credited to the Account of a Participant or of a person who is a Former Participant solely because he is excluded from membership under section 2.1(b)
shall become fully vested immediately upon his attainment of age 65 while employer by any Applicable Employer, or, if earlier, upon the termination of his employment with all Affiliated Employers by reason of death, Disability, Retirement or upon
the occurrence of a Change in Control. Service of any Employee of an Affiliated Employer shall be credited with Years of Vesting Service for any service rendered to an Affiliated Employer regardless of such Employee’s eligibility to participate
in the Plan under Section 2.1 hereof. 
  
 Section 9.3
Forfeitures on Termination of Employment. 
  
 Upon the termination of employment of a Participant or Former Participant for any reason other than death or Disability, that portion of the balance credited to his Account which is not vested at the date of such termination shall be
forfeited upon the earliest of (a) full distribution of the vested portion of the Account or (b) the fifth anniversary following the date of re-employment. The proceeds of such forfeited amounts, reduced by any amounts required to be credited
because of re-employment pursuant to section 9.4, shall be treated as Forfeitures and shall be disposed of as provided in section 9.5. If no portion of the balance credited to an Account of a Participant or Former Participant is vested as of the
date of his termination of employment, a distribution of $0, representing full distribution of the Account, shall be deemed to have been made to the Participant or Former Participant on such date. 
  

 21 

 Section 9.4 Amounts Credited Upon Re-Employment. 
  
 If an Employee forfeited any amount of the balance credited to his Account
upon his termination of employment, and is re-employed by any Affiliated Employer prior to the occurrence of five consecutive One-Year Breaks in Service, then: 
  

(i) an amount equal to the Fair Market Value of the Shares forfeited, determined as of the date of forfeiture; and 
  
 (ii) the amount credited to his General Investment Account
that was forfeited, determined as of the date of forfeiture; 
  
 shall be credited
back to his Account; provided, however, that the Employee repays the amount distributed to him from his Account as a result of such termination no later than the fifth anniversary of his re-employment or the end of the fifth Plan Year to
begin after such distribution, whichever is earlier. Such amounts to be re-credited shall be obtained from the proceeds of the forfeited amounts redeemed pursuant to section 9.3 during the Plan Year in which the repayment is made, unless such
proceeds are insufficient, in which case the Employee’s Employer shall make an additional contribution in the amount of such deficiency. For purposes of this section 9.4, a Participant or Former Participant who received a distribution of $0,
shall be deemed to have made repayment on the date of re-employment with an Employer. 
  
 Section 9.5 Allocation of Forfeitures. 
  
 Any Forfeitures that occur during a Plan Year shall be used to reduce the contributions required of the Employer under the Plan in the next Plan Year and
shall be treated as Loan Repayment Contributions and Discretionary Contributions in the proportions designated by the Committee in accordance with Article V. 
  
 ARTICLE X 
  
 THE TRUST FUND 
  
 Section 10.1 The Trust Fund. 
  
 The Trust Fund shall be held and invested under the Trust Agreement with the Trustee. The provisions of the Trust Agreement shall vest such powers in the Trustee as to investment, control and disbursement of the Trust
Fund, and such other provisions not inconsistent with the Plan, including provision for the appointment of one or more “investment managers” within the meaning of section 3(38) of ERISA to manage and control (including acquiring and
disposing of) all or any of the assets of the Trust Fund, as the Board may from time to time authorize. Except as required by ERISA, no bond or other security shall be required of any Trustee at any time in office. 
  
 Section 10.2 Investments. 
  
 Except to the extent provided to the contrary in section 10.3, the Trust Fund
shall be invested in: 
  
 (i) Shares; 

 

 22 

 (ii) such Investment Funds as may be established from time to time by the Committee; and

  
 (iii) such other investments as may be
permitted under the Trust Agreement; 
  
 in such proportions as shall be
determined by the Committee or, if so provided under the Trust Agreement, as directed by one or more investment managers or by the Trustee, in its discretion; provided, however, that the investments of the Trust Fund shall consist primarily
of Shares. Notwithstanding the immediately preceding sentence, the Trustee may temporarily invest the Trust Fund in short-term obligations of, or guaranteed by, the United States Government or an agency thereof, or may retain uninvested, or sell
investments to provide, amounts of cash required for purposes of the Plan. 
  
 Section 10.3 Distributions for Diversification of Investments. 
  
 (a) Notwithstanding section 10.2, each Qualified Participant may: 
  
 (i) during the first 90 days of each of the first five Plan Years to begin after the Plan Year in which he
first becomes a Qualified Participant, elect that such percentage of the balance credited to his Account as he may specify, but in no event more than 25% of the balance credited to his Account, be either distributed to him pursuant to this section
10.3(a)(i) or transferred to the Charter Bank 401(k) Plan to the extent permitted by such plan, no later than 90 days after the last day that such election may be made; and 
  
 (ii) during the first 90 days of the sixth Plan Year to begin after the Plan Year in which he first becomes
a Qualified Participant or of any Plan Year thereafter, elect that such percentage of the balance credited to his Account as he may specify, but in no event more than 50% of the balance credited to his Account, be either distributed to him pursuant
to this section 10.3(a)(ii) or transferred to the Charter Bank 401(k) Plan to the extent permitted by such plan, no later than 90 days after the last day that such election may be made. 
  
 For purposes of an election under this section 10.3, the balance credited to a Participant’s Account shall be the balance credited to
his Account determined as of the last Valuation Date to occur in the Plan Year immediately preceding the Plan Year in which such election is made and the 25% and 50% limitations shall apply to such balance after the balance has been reduced by the
amount of all amounts distributed or transferred to the Charter Bank 401(k) Plan under this section 10.3. 
  
 (b) An election made under section 10.3(a) shall be made in writing, in the form and manner prescribed by the Plan Administrator, and shall be filed with
the Plan Administrator during the election period specified in section 10.3(a). As soon as is practicable, and in no case later than 90 days following the end of the election period during which such election is made, the Plan Administrator shall
take such actions as are necessary to cause the 

  

 23 

 
specified percentage of the balance credited to the Account of the Qualified Participant making the election to be distributed to such Qualified Participant.

  
 (c) An election made under section 10.3(a) may be changed or
revoked at any time during the election period described in section 10.3(a) during which it is initially made. In no event, however, shall any election under this section 10.3 result in more than 25% of the balance credited to the Participant’s
Account being distributed to the Participant or transferred to the Charter Bank 401(k), if such election is made during a Plan Year to which section 10.3(a)(i) applies, or result in more than 50% of the balance distributed to the Participant or
transferred to the Charter Bank 401(k) Plan, if such election is made during the Plan Year to which section 10.3(a)(ii) applies or thereafter. 
  
 Section 10.4 Use of Commingled Trust Funds. 
  
 Subject to the provisions of the Trust Agreement, amounts held in the Trust Fund may be invested in: 
  
 (a) any commingled or group trust fund described in section
401(a) of the Code and exempt under section 501(a) of the Code; or 
  
 (b) any common trust fund exempt under section 584 of the Code maintained exclusively for the collective investment of the assets of trusts that are exempt under section 501(a) of the Code; provided that the trustee
of such commingled, group or common trust fund is a bank or trust company. 
  
 Section 10.5 Management and Control of Assets. 
  
 All assets of the Plan shall be held by the Trustee in trust for the exclusive benefit of Participants, Former Participants and their Beneficiaries. No
part of the corpus or income of the Trust Fund shall be used for, or diverted to, purposes other than for the exclusive benefit of Participants, Former Participants and their Beneficiaries, and for defraying reasonable administrative expenses of the
Plan and Trust Fund. No person shall have any interest in or right to any part of the earnings of the Trust Fund, or any rights in, to or under the Trust Fund or any part of its assets, except to the extent expressly provided in the Plan.

  
 ARTICLE XI 
  
 VALUATION OF INTERESTS IN THE TRUST FUND 
  
 Section 11.1 Establishment of Investment Accounts.

  
 The Plan Administrator shall establish, or cause to be
established, for each person for whom an Account is maintained a Share Investment Account and a General Investment Account. Such Share Investment Accounts and General Investment Accounts shall be maintained in accordance with this Article XI.

  

 24 

 Section 11.2 Share Investment Accounts. 
  
 The Share Investment Account established for a person in accordance with
section 11.1 shall be credited with: (a) all Shares allocated to such person’s Account; (b) all Shares purchased with amounts of money or property allocated to such person’s Account; (c) all dividends paid in the form of Shares with
respect to Shares credited to his Account; and (d) all Shares purchased with amounts credited to such person’s General Investment Account. Such Share Investment Account shall be charged with all Shares that are sold or exchanged to acquire
other investments or to provide cash and with all Shares that are distributed in kind. 
  
 Section 11.3 General Investment Accounts. 
  
 The General Investment Account that is established for a person in accordance with section 11.1 shall be credited with: (a) all amounts, other than
Shares, allocated to such person’s Account; (b) all dividends paid in a form other than Shares with respect to Shares credited to such person’s Share Investment Account; (c) the proceeds of any sale of Shares credited to such person’s
Share Investment Account; and (d) any earnings attributable to amounts credited to such person’s General Investment Account. Such General Investment Account shall be charged with all amounts credited thereto that are applied to the purchase of
Shares, any losses or depreciation attributable to amounts credited thereto, any expenses allocable thereto and any distributions of amounts credited thereto. 
  

Section 11.4 Valuation of Investment Accounts. 
  
 (a) The Plan Administrator shall determine, or cause to be determined, the aggregate value of each person’s Share
Investment Account as of each Valuation Date by multiplying the number of Shares credited to such Share Investment Account on such Valuation Date by the Fair Market Value of a Share on such Valuation Date. 
  
 (b) As of each Valuation Date, the Accounts of each Participant shall be
separately adjusted to reflect their proportionate share of any appreciation or depreciation in the fair market value of the Investment Funds, any income earned by the Investment Funds and any expenses incurred by the Investment Funds, as well as
any contributions, withdrawals or distributions and investment transfers not posted as of the last Valuation Date. 
  
 Section 11.5 Annual Statements. 
  
 There shall be furnished, by mail or otherwise, at least once in each Plan Year to each person who would then be entitled to receive all or part of the
balance credited to any Account if the Plan were then terminated, a statement of his interest in the Plan as of such date as shall be selected by the Plan Administrator, which statement shall be deemed to have been accepted as correct and be binding
on such person unless the Plan Administrator receives written notice to the contrary within 30 days after the statement is mailed or furnished to such person. 
  

 25 

 ARTICLE XII 
  
 SHARES 
  
 Section 12.1 Specific Allocation of Shares. 
  
 All Shares purchased under the Plan shall be specifically allocated to the Share Investment Accounts of Participants, Former
Participants and their Beneficiaries in accordance with section 11.2, with the exception of Financed Shares, which shall be allocated to the Loan Repayment Account. 
  
 Section 12.2 Dividends. 
  
 (a) Dividends paid with respect to Shares held under the Plan shall be credited to the Loan Repayment Account, if paid with
respect to Financed Shares. Such dividends shall be: (i) applied to the payment of principal and accrued interest with respect to any Share Acquisition Loan, if paid in cash; or (ii) held in the Loan Repayment Account as Financed Shares for release
in accordance with section 6.4, if paid in the form of Shares. 
  
 (b) Dividends paid with respect to Shares allocated to a person’s Share Investment Account shall be credited to such person’s Share Investment Account. Cash dividends credited to a person’s General Investment Account shall
be, at the direction of the Committee, either: (i) held in such General Investment Account and invested in accordance with sections 10.2 and 11.3; (ii) distributed immediately to such person; (iii) distributed to such person within 90 days of the
close of the Plan Year in which such dividends were paid; (iv) used to make payments of principal or interest on a Share Acquisition Loan; provided, however, that the Fair Market Value of Financed Shares released from the Loan Repayment
Account as a result of such payment equals or exceeds the amount of the dividend; or (v) in calendar years beginning after December 31, 2001 either held as provided in section 12.2(b)(i) or distributed as provided in section 12.2(b)(ii), as each
person shall elect for his own Account. 
  
 Section 12.3
Voting Rights. 
  
 (a) Each person shall
direct the manner in which all voting rights appurtenant to Shares allocated to his Share Investment Account will be exercised, provided that such Shares were allocated to his Share Investment Account as of the applicable record date. Such person
shall, for such purpose, be deemed a “named fiduciary” within the meaning of section 402(a)(2) of ERISA. Such a direction shall be given by completing and filing with the inspector of elections, the Trustee or such other person who shall
be independent of the Participating Employers as the Committee shall designate, at least 10 days prior to the date of the meeting of holders of Shares at which such voting rights will be exercised, a written direction in the form and manner
prescribed by the Committee. The inspector of elections, the Trustee or such other person designated by the Committee shall tabulate the directions given on a strictly confidential basis, and shall provide the Committee with only the final results
of the tabulation. The final results of the tabulation shall be followed by the Committee in directing the Trustee as to the manner in which such voting rights shall be exercised. The Plan Administrator shall make a reasonable effort to furnish, or
cause to be furnished, to each person for whom a Share 

  

 26 

 
Investment Account is maintained all annual reports, proxy materials and other information known by the Plan Administrator to have been furnished by the
issuer of the Shares, or by any solicitor of proxies, to the holders of Shares. 
  
 (b) To the extent that any person shall fail to give instructions with respect to the exercise of voting rights appurtenant to Shares allocated to his Share Investment Account: 
  
 (i) the Trustee shall, with respect to each matter to be
voted upon: (A) cast a number of affirmative votes equal to the product of (I) the number of allocated Shares for which no written instructions have been given, multiplied by (II) a fraction, the numerator of which is the number of allocated Shares
for which affirmative votes will be cast in accordance with written instructions given as provided in section 12.3(a) and the denominator of which is the aggregate number of affirmative and negative votes which will be cast in accordance with
written instructions given as aforesaid, and (B) cast a number of negative votes equal to the excess (if any) of (I) the number of allocated Shares for which no written instructions have been given over (II) the number of affirmative votes being
cast with respect to such allocated Shares pursuant to section 12.3(b)(i)(A); or 
  
 (ii) if the Trustee shall determine that it may not, consistent with its fiduciary duties, vote the allocated Shares for which no written
instructions have been given in the manner described in section 12.3(b)(i), it shall vote such Shares in such manner as it, in its discretion, may determine to be in the best interests of the persons to whose Share Investment Accounts such Shares
have been allocated. 
  
 (c) (i) The voting rights appurtenant to
Financed Shares shall be exercised as follows with respect to each matter as to which holders of Shares may vote: 
  
 (A) a number of votes equal to the product of (I) the total number of votes appurtenant to Financed Shares allocated to the Loan Repayment
Account on the applicable record date; multiplied by (II) a fraction, the numerator of which is the total number of affirmative votes cast by Participants, Former Participants and the Beneficiaries of deceased Former Participants with respect to
such matter pursuant to section 12.3(a) and the denominator of which is the total number of affirmative and negative votes cast by Participants, Former Participants and the Beneficiaries of deceased Former Participants, shall be cast in the
affirmative; and 
  
 (B) a number of votes equal
to the excess of (I) the total number of votes appurtenant to Financed Shares allocated to the Loan Repayment Account on the applicable record date, over (II) the number of affirmative votes cast pursuant to section 12.3(c)(i)(A) shall be cast in
the negative. 
  
 To the extent that the Financed Shares consist of more than one
class of Shares, this section 12.3(c)(i) shall be applied separately with respect to each class of Shares. 
  
 (ii) If voting rights are to be exercised with respect to Financed Shares as provided in section 12.3(c)(i)(A) and (B) at a time when
there are no Shares allocated to the Share Investment Accounts of Participants, Former Participants and the Beneficiaries 

  

 27 

 
of deceased Former Participants, then the voting rights appurtenant to Financed Shares shall be exercised as follows with respect to each matter as to which
holders of Shares may vote: 
  
 (A) Each person
who is a Participant on the applicable record date will be granted a number of votes equal to the quotient, rounded to the nearest integral number, of (I) such Participant’s Allocation Compensation for the Plan Year ending on or immediately
prior to such record date (or for the portion of such Plan Year during which he was a Participant); divided by (II) $1,000.00; and 
  
 (B) a number of votes equal to the product of (I) the total number of Financed Shares allocated to the Loan Repayment Account on the
applicable record date; multiplied by (II) a fraction, the numerator of which is the total number of votes that are cast in the affirmative with respect to such matter pursuant to section 12.3(c)(ii)(A) and the denominator of which is the total
number of votes that are cast either in the affirmative or in the negative with respect to such matter pursuant to section 12.3(c)(ii)(A), shall be cast in the affirmative; and 
  
 (C) a number of votes equal to the excess of (I) the total number of Financed Shares allocated to the Loan
Repayment Account on the applicable record date, over (II) the number of affirmative votes cast with respect to such matter pursuant to section 12.3(c)(ii)(B), shall be cast in the negative. 
  
 To the extent that the Financed Shares consist of more than one class of Shares, this section
12.3(c)(ii) shall be applied separately with respect to each class of Shares. 
  
 Section 12.4 Tender Offers. 
  
 (a) Each person shall direct whether Shares allocated to his Share Investment Account will be delivered in response to any Tender Offer. Such person shall, for such purpose, be deemed a “named fiduciary”
within the meaning of section 402(a)(2) of ERISA. Such a direction shall be given by completing and filing with the Trustee or such other person who shall be independent of the Participating Employers as the Committee shall designate, at least 10
days prior to the latest date for exercising a right to deliver Shares pursuant to such Tender Offer, a written direction in the form and manner prescribed by the Committee. The Trustee or other person designated by the Committee shall tabulate the
directions given on a strictly confidential basis, and shall provide the Committee with only the final results of the tabulation. The final results of the tabulation shall be followed by the Committee in directing the number of Shares to be
delivered. The Plan Administrator shall make a reasonable effort to furnish, or cause to be furnished, to each person for whom a Share Investment Account is maintained, all information known by the Plan Administrator to have been furnished by the
issuer or by or on behalf of any person making such Tender Offer, to the holders of Shares in connection with such Tender Offer. 
  

 28 

 (b) To the extent that any person shall fail to give instructions with respect to Shares allocated to his
Share Investment Account: 
  
 (i) the Trustee
shall (A) tender or otherwise offer for purchase, exchange or redemption a number of such Shares equal to the product of (I) the number of allocated Shares for which no written instructions have been given, multiplied by (II) a fraction, the
numerator of which is the number of allocated Shares tendered or otherwise offered for purchase, exchange or redemption in accordance with written instructions given as provided in section 12.4(a) and the denominator of which is the aggregate number
of allocated Shares for which written instructions have been given as aforesaid, and (B) withhold a number of Shares equal to the excess (if any) of (I) the number of allocated Shares for which no written instructions have been given over (II) the
number of Shares being tendered or otherwise offered pursuant to section 12.4(b)(i)(A); or 
  
 (ii) if the Trustee shall determine that it may not, consistent with its fiduciary duties, exercise the tender or other rights appurtenant
to allocated Shares for which no written instructions have been given in the manner described in section 12.4(b)(i), it shall tender, or otherwise offer, or withhold such Shares in such manner as it, in its discretion, may determine to be in the
best interests of the persons to whose Share Investment Accounts such Shares have been allocated. 
  
 (c) In the case of any Tender Offer, any Financed Shares held in the Loan Repayment Account shall be dealt with as follows: 
  
 (i) If such Tender Offer occurs at a time when there are no
Shares allocated to the Share Investment Accounts of Participants, Former Participants and the Beneficiaries of deceased Former Participants, then the disposition of the Financed Shares shall be determined as follows: 
  
 (A) each person who is a Participant on the applicable
record date will be granted a number of tender rights equal to the quotient, rounded to the nearest integral number, of (I) such Participant’s Allocation Compensation for the Plan Year ending on or immediately prior to such record date (or for
the portion of such Plan Year during which he was a Participant), divided by (II) $1,000.00; and 
  
 (B) on the last day for delivering Shares or otherwise responding to such Tender Offer, a number of Shares equal to the product of (I)
the total number of Financed Shares allocated to the Loan Repayment Account on the last day of the effective period of such Tender Offer; multiplied by (II) a fraction, the numerator of which is the total number of tender rights exercised in favor
of the delivery of Shares in response to the Tender Offer pursuant to section 12.4(c)(i)(A) and the denominator of which is the total number of tender rights that are exercisable in response to the Tender Offer pursuant to section 12.4(c)(i)(A),
shall be delivered in response to the Tender Offer; and 
  
 (C) a number of Shares equal to the excess of (I) the total number of Financed Shares allocated to the Loan Repayment Account on the last day of the effective period of such Tender Offer; over (II) the number of
Shares to be 

  

 29 

 
delivered in response to the Tender Offer pursuant to section 12.4(c)(i)(B), shall be withheld from delivery. 
  
 (ii) If such Tender Offer occurs at a time when the voting
rights appurtenant to such Financed Shares are to be exercised in accordance with section 12.3(c)(i), then: 
  
 (A) on the last day for delivering Shares or otherwise responding to such Tender Offer, a number of Financed Shares equal to the product
of (I) the total number of Financed Shares allocated to the Loan Repayment Account on the last day of the effective period of such Tender Offer; multiplied by (II) a fraction, the numerator of which is the total number of Shares delivered from the
Share Investment Accounts of Participants, Former Participants and the Beneficiaries of deceased Former Participants in response to such Tender Offer pursuant to section 12.4(a), and the denominator of which is the total number of Shares allocated
to the Share Investment Accounts of Participants, Former Participants and Beneficiaries of deceased Former Participants immediately prior to the last day for delivering Shares or otherwise responding to such Tender Offer, shall be delivered; and

  
 (B) a number of Financed Shares equal to the
excess of (I) the total number of Financed Shares allocated to the Loan Repayment Account on the last day for delivering Shares or otherwise responding to such Tender Offer; over (II) the number of Financed Shares to be delivered pursuant to section
12.4(c)(ii)(A), shall be withheld from delivery. 
  
 To the
extent that the Financed Shares consist of more than one class of Shares, this section 12.4(c) shall be applied separately with respect to each class of Shares. 
  

ARTICLE XIII 
  
 PAYMENT OF BENEFITS 
  
 Section 13.1 In General. 
  
 The balance credited to a Participant’s or Former Participant’s Account under the Plan shall be paid only at the times, to the extent, in the manner and to the persons provided in this Article XIII.

  
 Section 13.2 Designation of
Beneficiaries. 
  
 (a) Subject to section 13.2(b),
any person entitled to a benefit under the Plan may designate a Beneficiary to receive any amount to which he is entitled that remains undistributed on the date of his death. Such person shall designate his Beneficiary (and may change or revoke any
such designation) in writing in the form and manner prescribed by the Plan Administrator. Such designation, and any change or revocation thereof, shall be effective only if 

  

 30 

 
received by the Plan Administrator prior to such person’s death and shall become irrevocable upon such person’s death. 
  
 (b) A Participant or Former Participant who is married shall automatically be
deemed to have designated his spouse as his Beneficiary, unless, prior to the time such designation would, under section 13.2(a), become irrevocable: 
  
 (i) the Participant or Former Participant designates an additional or a different Beneficiary in accordance with this section 13.2; and

  
 (ii) (A) the spouse of such Participant or
Former Participant consents to such designation in a writing that acknowledges the effect of such consent and is witnessed by a Plan representative or a notary public; or (B) the spouse of such Participant or Former Participant has previously
consented to such designation by signing a written waiver of any right to consent to any designation made by the Participant or Former Participant, and such waiver acknowledged the effect of the waiver and was witnessed by a Plan representative or a
notary public; or (C) it is established to the satisfaction of a Plan representative that the consent required under section 13.2(b)(ii)(A) may not be obtained because such spouse cannot be located or because of other circumstances permitted under
regulations issued by the Secretary of the Treasury. 
  
 (c) In
the event that a Beneficiary entitled to payments hereunder shall die after the death of the person who designated him but prior to receiving payment of his entire interest in the Account of the person who designated him, then such
Beneficiary’s interest in the Account of such person, or any unpaid balance thereof, shall be paid as provided in section 13.3 to the Beneficiary who has been designated by the deceased Beneficiary, or if there is none, to the executor or
administrator of the estate of such deceased Beneficiary, or if no such executor or administrator is appointed within such time as the Plan Administrator, in his sole discretion, shall deem reasonable, to such one or more of the spouse and
descendants and blood relatives of such deceased Beneficiary as the Plan Administrator may select. If a person entitled to a benefit under the Plan and any of the Beneficiaries designated by him shall die in such circumstances that there shall be
substantial doubt as to which of them shall have been the first to die, for all purposes of the Plan, the person who made the Beneficiary designation shall be deemed to have survived such Beneficiary. 
  
 (d) If no Beneficiary survives the person entitled to the benefit under the
Plan or if no Beneficiary has been designated by such person, such benefit shall be paid to the executor or administrator of the estate of such person, or if no such executor or administrator is appointed within such time as the Plan Administrator,
in his sole discretion, shall deem reasonable, to such one or more of the spouse and descendants and blood relatives of such deceased person as the Plan Administrator may select. 
  
 Section 13.3 Distributions to Participants. 
  
 (a) Except as provided in section 13.5, the vested portion of the balance
credited to a Former Participant’s Account shall be distributed to him in a single lump sum 

  

 31 

 
distribution as of the last Valuation Date to occur in the Plan Year in which he terminates employment with all Affiliated Employers or the Plan Year in
which he attains age 65, whichever is later; provided, however, that if the Former Participant elects, at such time and in such manner as the Plan Administrator may prescribe, that distribution be made as of an earlier date following his
termination of employment with all Affiliated Employers; provided further, that if the total vested balance credited to his Account at or at any time after termination of employment is $1,000 or less, his entire vested interest in his Account shall
be paid to him in a single lump sum as soon as practicable after termination of employment. If an Account of a Participant or Former Participant does not contain any vested amounts as of the date of his termination of employment with all Affiliated
Employers, a distribution of $0, representing full distribution of the Account, shall be deemed to have been made to the Participant or Former Participant on such date. 
  
 (b) In the event of the death of a Participant or Former Participant before the date of actual distribution of the vested
portion of the balance credited to his Account, such vested portion shall be distributed to his Beneficiary in a single distribution as of the first Valuation Date to occur following the latest of (i) the date on which the Plan Administrator is
notified of the Participant’s or Former Participant’s death; and (ii) the date on which the Plan Administrator determines the identity and location of the Participant’s or Former Participant’s Beneficiary or Beneficiaries. The
actual distribution shall be made within sixty days after the applicable Valuation Date. 
  
 Section 13.4 Manner of Payment. 
  
 Distributions made pursuant to section 13.3 or section 13.5 shall be made in the maximum number of whole Shares that are available, plus, if necessary, an amount of money equal to any remaining amount of the
distribution that is less than the Fair Market Value of a whole Share; provided, however, that the distributions made pursuant to section 13.3 or section 13.5 shall be made in any combination of whole Shares and cash as the Participant or
Former Participant shall elect. 
  
 Section 13.5
Minimum Required Distributions. 
  
 (a)
Required minimum distributions of a Participant’s or Former Participant’s Account shall commence no later than: 
  
 (i) if the Participant or Former Participant was not a Five Percent Owner at any time during the Plan Year ending in the calendar year in
which he attained age 701⁄2, during any of the four preceding Plan Years or during any subsequent years, the later of (A) the calendar year in which he attains or attained age 701⁄2 or (B) the calendar year in which he terminates employment
with all Affiliated Employers; or 
  
 (ii) if the
Participant or Former Participant attains age 701⁄2 after December 31, 1998 and is or was a Five Percent Owner at any time during the Plan Year ending in the calendar year in which he attained age 701⁄2, during any of the four preceding Plan
Years or during any subsequent years, the later of (A) the 

  

 32 

 
calendar year in which he attains age 701⁄2 or (B) the calendar year in which he first becomes a Five Percent Owner. 
  
 (b) The required minimum distributions contemplated by section 13.5(a) shall
be made as follows: 
  
 (i) The minimum required
distribution to be made for the calendar year for which the first minimum distribution is required shall be no later than April 1st of the immediately following calendar year and shall be equal to the quotient obtained by dividing (A) the vested
balance credited to the Participant’s or Former Participant’s Account as of the last Valuation Date to occur in the calendar year immediately preceding the calendar year in which the first minimum distribution is required (adjusted to
account for any additions thereto or subtractions therefrom after such Valuation Date but on or before December 31st of such calendar year); by (B) the Participant’s or Former Participant’s life expectancy (or, if his Beneficiary is a
Designated Beneficiary, the joint life and last survivor expectancy of him and his Beneficiary); and 
  
 (ii) the minimum required distribution to be made for each calendar year following the calendar year for which the first minimum
distribution is required shall be made no later than December 31st of the calendar year for which the distribution is required and shall be equal to the quotient obtained by dividing (A) the vested balance credited to the Participant’s or
Former Participant’s Account as of the last Valuation Date to occur in the calendar year prior to the calendar year for which the distribution is required (adjusted to account for any additions thereto or subtractions therefrom after such
Valuation Date but on or before December 31st of such calendar year and, in the case of the distribution for the calendar year immediately following the calendar year for which the first minimum distribution is required, reduced by any distribution
for the prior calendar year that is made in the current calendar year); by (B) the Participant’s or Former Participant’s life expectancy (or, if his Beneficiary is a Designated Beneficiary, the joint life and last survivor expectancy of
him and his Beneficiary). 
  
 (c) For purposes of section 13.5(b):

  
 (i) for taxable years beginning before
January 1, 2003, the life expectancy of a Participant or Former Participant (or the joint life and last survivor expectancy of a Participant or Former Participant and his Designated Beneficiary) for the calendar year in which the Participant or
Former Participant attains age 701⁄2 shall be determined on the basis of Tables V and VI, as applicable, of section 1.72-9 of the Income Tax Regulations as of the Participant’s or Former Participant’s birthday in such year. Such life
expectancy or joint life and last survivor expectancy for any subsequent year shall be equal to the excess of (1) the life expectancy or joint life and last survivor expectancy for the year in which the Participant or Former Participant attains age
701⁄2, over (2) the number 

  

 33 

 
of whole years that have elapsed since the Participant or Former Participant attained age 701⁄2; and 
  
 (ii) for taxable years beginning after December 31, 2002,
during the Participant’s or Former Participant’s lifetime, life expectancy shall be equal to: 
  
 (1) the distribution period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the
Participant’s age as of the Participant’s birthday in such calendar year; or 
  
 (2) if the Participant’s spouse is the sole Designated Beneficiary and the spouse is more than ten years younger than the
Participant, the number in the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in
such calendar year. 
  
 (d) Payment of the distributions required
to be made to a Participant or Former Participant under this section 13.5 shall be made in accordance with section 13.4. 
  
 Section 13.6 Direct Rollover of Eligible Rollover Distributions. 
  
 (a) A Distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an
Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover. 
  
 (b) The following rules shall apply with respect to Direct Rollovers made pursuant to this section 13.6: 
  
 (i) A Distributee may only elect to make a Direct Rollover
of an Eligible Rollover Distribution if such Eligible Rollover Distribution (when combined with other Eligible Rollover Distributions made or to be made in the same calendar year) is reasonably expected to be at least $200; 
  
 (ii) If a Distributee elects a Direct Rollover of a portion
of an Eligible Rollover Distribution, that portion must be equal to at least $500; and 
  
 (iii) A Distributee may not divide his or her Eligible Rollover Distribution into separate distributions to be transferred to two or more
Eligible Retirement Plans. 
  
 (c) For purposes of this section
13.6 and any other applicable section of the Plan, the following definitions shall have the following meanings: 
  
 (i) Direct Rollover means a payment by the Plan to the Eligible Retirement Plan specified by the Distributee. 
  

 34 

 (ii) Distributee means an Employee or former Employee. In addition, the
Employee’s or former Employee’s surviving spouse and the Employee’s spouse or former spouse who is the alternate payee under a Qualified Domestic Relations Order are considered Distributees with regard to the interest of the spouse or
former spouse. 
  
 (iii) Eligible
Retirement Plan means an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code, or a qualified
trust described in section 401(a) of the Code, and (for distributions after December 31, 2001 only) an annuity contract described in section 403(b) of the Code or an eligible deferred compensation plan under section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or an agency or instrumentality of a state or political subdivision thereof and which agrees to separately account for amounts transferred into such plan from this Plan, that accepts the
distributee’s eligible rollover distribution. However, in the case of an eligible rollover distribution made before January 1, 2002 to a current or former spouse who is the alternate payee under a qualified domestic relations order as defined
in Code section 414(p) or to a surviving spouse, an eligible retirement plan is only an individual retirement account or individual retirement annuity. 
  
 (iv) Eligible Rollover Distribution means any distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated Beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under
section 401(a)(9) of the Code; any distribution made after December 31, 1999 on account of hardship; and in the case of a distribution made before January 1, 2002, the portion of any distribution that is not includible in gross income (determined
without regard to the exclusion for net unrealized appreciation with respect to employer securities). A portion of a distribution that is includible in the gross income of the distributee that is treated as an eligible rollover distribution may only
be transferred in a direct rollover to an eligible retirement plan that agrees to separately account for such portion of the distribution. This section 13.6 shall not apply to any eligible rollover distributions during a year that are reasonably
expected (as determined by the Committee) to total less than $200. In no event shall any withdrawal during service that is made on account of hardship be considered an “eligible rollover distribution”. This section 13.6 shall be
interpreted to comply with the provisions of section 401(a)(31) of the Code. 
  

 35 

 Section 13.7 Valuation of Shares Upon Distribution. 
  
 Notwithstanding any contrary provision in this Article XIII, in the event
that all or a portion of a payment of a distribution is to be made in cash, the recipient shall only be entitled to receive the proceeds of the Shares allocated to his Account that are sold in connection with such distribution and which are valued
as of the date of such sale. 
  
 Section 13.8 Put
Options. 
  
 (a) Except as provided otherwise in
section 13.8(b), each Participant or Former Participant to whom Shares are distributed under the Plan, each Beneficiary of a deceased Participant or Former Participant, including the estate of a deceased Participant or Former Participant, to whom
Shares are distributed under the Plan, and each person to whom such a Participant, Former Participant or Beneficiary gives Shares that have been distributed under the Plan shall have the right to require Charter Financial Corporation to purchase
from him all or any portion of such Shares. A person shall exercise such right by delivering to Charter Financial Corporation a written notice, in such form and manner as Charter Financial Corporation may by written notice to such person prescribe,
setting forth the number of Shares to be purchased by Charter Financial Corporation, the number of the stock certificate evidencing such person’s ownership of such Shares, and the effective date of the purchase. Such notice shall be given at
least 30 days in advance of the effective date of purchase, and the effective date of purchase specified therein shall be, either within the 60 day period that begins on the date on which the Shares to be purchased by Charter Financial Corporation
were distributed from the Plan or within the 60 day period that begins on the first day of the Plan Year immediately following the Plan Year in which the Shares to be purchased by Charter Financial Corporation are distributed from the Plan. As soon
as practicable following its receipt of such a notice, Charter Financial Corporation shall take such actions as are necessary to purchase the Shares specified in such notice at a price per Share equal to the Fair Market Value of a Share determined
as of the Valuation Date coincident with or immediately preceding the effective date of the purchase. 
  
 (b) Charter Financial Corporation shall have no obligation to purchase any Share (i) pursuant to a notice that is not timely given, or on an effective
date of purchase that is not within the periods prescribed in section 13.8(a), or (ii) during a period in which Shares are publicly traded on an established market. 
  
 Section 13.9 Right of First Refusal. 
  
 (a) For any period during which Shares are not publicly traded on an
established market, no person who owns Shares that were distributed from the Plan, other than a person to whom such Shares were sold in compliance with this section 13.9, shall sell such Shares to any person other than Charter Financial Corporation
without first offering to sell such Shares to Charter Financial Corporation in accordance with this section 13.9. 
  

 36 

 (b) In the event that a person to whom this section 13.9 applies shall receive and desire to accept from
a person other than Charter Financial Corporation an offer to purchase Shares to which this section 13.9 applies, he shall furnish to Charter Financial Corporation a written notice which shall: 
  
 (i) include a copy of such offer to purchase; 
  
 (ii) offer to sell to Charter Financial Corporation the
Shares subject to such offer to purchase at a price per Share that is equal to the greater of: 
  
 (A) the price per Share specified in such offer to purchase; or 
  
 (B) the Fair Market Value of a Share as of the Valuation Date coincident with or immediately preceding the
date of such notice; 
  
 and otherwise upon the same terms and
conditions as those specified in such offer to purchase; and 
  
 (iii) include an indication of his intention to accept such offer to purchase if Charter Financial Corporation does not accept his offer to sell. 
  
 Such person shall refrain from accepting such offer to purchase for a period of fourteen days following the date on which such notice is
given. 
  
 (c) Charter Financial Corporation shall have the right
to purchase the Shares covered by the offer to sell contained in a notice given pursuant to section 13.9(b), on the terms and conditions specified in such notice, by written notice given to the party making the offer to sell not later than the
fourteenth day after the notice described in section 13.9(b) is given. If Charter Financial Corporation does not give such a notice during the prescribed fourteen day period, then the person owning such Shares may accept the offer to purchase
described in the notice. 
  
 ARTICLE XIV 
  
 CHANGE IN CONTROL 
  
 Section 14.1 Definition of Change in Control; Pending Change in
Control. 
  
 (a) A Change in Control shall be
deemed to have occurred upon the happening of any of the following events: 
  
 (i) any event upon which any “person” (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than (A) a trustee or other fiduciary holding securities
under any employee benefit plan maintained for the benefit of employees of Charter Financial Corporation; (B) a corporation owned, directly or indirectly, by the stockholders of Charter Financial Corporation in substantially the same proportions as
their ownership of stock of Charter Financial Corporation; or (C) any group 

  

 37 

 
constituting a person in which employees of Charter Financial Corporation are substantial members, becomes the “beneficial owner” (as defined in
Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities issued by Charter Financial Corporation representing 25% or more of the combined voting power of all of Charter Financial Corporation’s then outstanding
securities; or 
  
 (ii) any event upon which the
individuals who on the Effective Date were members of the Board of Directors of Charter Financial Corporation together with individuals whose election by such Board or nomination for election by Charter Financial Corporation’s stockholders was
approved by the affirmative vote of at least two-thirds of the members of such Board then in office who were either members of such Board on the Effective Date or whose nomination or election was previously so approved, cease for any reason to
constitute a majority of the members of such Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of directors of
Charter Financial Corporation (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange Act of 1934) as amended; or 
  
 (iii) the consummation of either: 
  
 (A) a merger or consolidation of Charter Financial Corporation with any other corporation, other than a merger or consolidation following
which both of the following conditions are satisfied: 
  
 (I) either (1) the members of the Board of Directors of Charter Financial Corporation immediately prior to such merger or consolidation constitute at least a majority of the members of the governing body of the institution resulting from
such merger or consolidation; or (2) the shareholders of Charter Financial Corporation own securities of the institution resulting from such merger or consolidation representing 60% or more of the combined voting power of all such securities then
outstanding in substantially the same proportions as their ownership of voting securities of Charter Financial Corporation before such merger or consolidation; and 
  
 (II) the entity which results from such merger or consolidation expressly agrees in writing to assume and
perform Charter Financial Corporation’s obligations under the Plan; or 
  
 (B) a complete liquidation of Charter Financial Corporation or an agreement for the sale or disposition by Charter Financial Corporation of all or substantially all of its assets; or 
  
 (iv) any event that would be described in section 16.1 if
“CharterBank” were substituted for “Charter Financial Corporation” therein. 
  

 38 

 In no event, however, shall the transaction by which CharterBank converts from a mutual institution to a stock
institution, or any transaction by which a company wholly owned by CharterBank becomes the parent company of CharterBank, be deemed a Change in Control. 
  
 (b) A Pending Change of Control shall be deemed to have occurred upon the happening of any of the following events: 
  
 (i) approval by the stockholders of Charter Financial
Corporation of a transaction, or a plan for the consummation of a transaction, which, if consummated, would result in a Change in Control; 
  
 (ii) approval by the Board of Directors of Charter Financial Corporation of a transaction, or a plan for the consummation of a
transaction, which, if consummated, would result in a Change in Control; 
  
 (iii) the commencement of a tender offer (within the meaning of section 14(d)(i) of the Exchange Act, as amended) for securities issued by Charter Financial Corporation, which, if completed, would result in a Change
in Control; 
  
 (iv) the furnishing or
distribution of a proxy statement or other document, whether or not in opposition to management, soliciting proxies, consents or authorizations (within the meaning of section 14 of the Exchange Act) in respect of securities issued by Charter
Financial Corporation in favor of any election, transaction or other action which, if effected, would result in a Change in Control; or 
  
 (v) any event which would be described in Sections 14.1(b)(i), (ii), (iii) or (iv) if “CharterBank” were substituted for
“Charter Financial Corporation” therein. 
  
 Section
14.2 Vesting on Change of Control. 
  
 Notwithstanding any other provision of the Plan, upon the effective date of a Change in Control, the Account of each person who would then, upon termination of the Plan, be entitled to a benefit, shall be fully vested and nonforfeitable.

  
 Section 14.3 Repayment of Share Acquisition
Loan. 
  
 Notwithstanding any other provision of
the Plan, upon the occurrence of a Change in Control, the Committee shall direct the Trustee to sell a sufficient number of shares of Stock to repay any outstanding Share Acquisition Loan, all remaining Shares which had been unallocated (or the
proceeds from the sale thereof, if applicable) shall be allocated among the accounts of all individuals with undistributed Account balances on the effective date of such Change in Control. Such allocation of Shares or proceeds shall be in proportion
to the balance credited to their Accounts immediately prior to such allocation. 
  

 39 

 Section 14.4 Plan Termination After Change in Control. 
  
 Notwithstanding any other provision of the Plan, after repayment of the loan
and allocation of Shares or proceeds as provided in Section 14.3, the Plan shall be terminated and all amounts shall be distributed as soon as practicable. 
  
 Section 14.5 Amendment of Section XIV. 
  
 Notwithstanding any other provision of the Plan, this Section 14 of the Plan may not be amended after the earliest date on
which a Change in Control or Pending Change in Control occurs, except (i) to the extent any amendment is required by the Internal Revenue Service as a condition to the continued treatment of the Plan as a tax-qualified plan under section 401(a) of
the Code or (ii) to the extent that the Company, in its sole discretion, determines than any such amendment is necessary in order to permit any transaction to which the Company, and/or its parent or affiliate, is or proposes to be a party to qualify
for “pooling of interests” accounting treatment. 
  
 ARTICLE XV 
  
 ADMINISTRATION 
  
 Section 15.1 Named Fiduciaries. 
  
 The term “Named Fiduciary” shall mean (but only to the extent of
the responsibilities of each of them) the Plan Administrator, the Committee, the Board and the Trustee. This Article XV is intended to allocate to each Named Fiduciary the responsibility for the prudent execution of the functions assigned to him or
it, and none of such responsibilities or any other responsibility shall be shared by two or more of such Named Fiduciaries. Whenever one Named Fiduciary is required by the Plan or Trust Agreement to follow the directions of another Named Fiduciary,
the two Named Fiduciaries shall not be deemed to have been assigned a shared responsibility, but the responsibility of the Named Fiduciary giving the directions shall be deemed his sole responsibility, and the responsibility of the Named Fiduciary
receiving those directions shall be to follow them insofar as such instructions are on their face proper under applicable law. 
  
 Section 15.2 Plan Administrator. 
  
 There shall be a Plan Administrator, who shall be such Employee or officer as may be designated by the Committee, as hereinafter provided, and who shall,
subject to the responsibilities of the Committee and the Board, have the responsibility for the day-to-day control, management, operation and administration of the Plan (except trust duties). In the absence of a designation by the Committee, the
Plan Administrator shall be the Committee. The Plan Administrator shall have the following responsibilities: 
  
 (a) To maintain records necessary or appropriate for the administration of the Plan; 
  

 40 

 (b) To give and receive such instructions, notices, information, materials, reports and
certifications to the Trustee as may be necessary or appropriate in the administration of the Plan; 
  
 (c) To prescribe forms and make rules and regulations consistent with the terms of the Plan and with the interpretations and other actions
of the Committee; 
  
 (d) To require such proof
of age or evidence of good health of an Employee, Participant or Former Participant or the spouse of either, or of a Beneficiary as may be necessary or appropriate in the administration of the Plan; 
  
 (e) To prepare and file, distribute or furnish all reports,
plan descriptions, and other information concerning the Plan, including, without limitation, filings with the Secretary of Labor and communications with Participants, Former Participants and other persons, as shall be required of the Plan
Administrator under ERISA; 
  
 (f) To determine
any question arising in connection with the Plan, and the Plan Administrator’s decision or action in respect thereof shall be final and conclusive and binding upon the Employer, the Trustee, Participants, Former Participants, Beneficiaries and
any other person having an interest under the Plan; provided, however, that any question relating to inconsistency or omission in the Plan, or interpretation of the provisions of the Plan, shall be referred to the Committee by the Plan
Administrator and the decision of the Committee in respect thereof shall be final; 
  
 (g) Subject to the provisions of section 15.5, to review and dispose of claims under the Plan filed pursuant to section 15.4; 

 
 (h) If the Plan Administrator shall determine that by
reason of illness, senility, insanity, or for any other reason, it is undesirable to make any payment to a Participant, Former Participant, Beneficiary or any other person entitled thereto, to direct the application of any amount so payable to the
use or benefit of such person in any manner that he may deem advisable or to direct in his discretion the withholding of any payment under the Plan due to any person under legal disability until a representative competent to receive such payment in
his behalf shall be appointed pursuant to law; 
  
 (i) To discharge such other responsibilities or follow such directions as may be assigned or given by the Committee or the Board; and 
  
 (j) To perform any duty or take any action which is allocated to the Plan Administrator under the Plan. 
  
 The Plan Administrator shall have the power and authority necessary or appropriate to carry
out his responsibilities. The Plan Administrator may resign only by giving at least 30 days’ prior 

  

 41 

 
written notice of resignation to the Committee, and such resignation shall be effective on the date specified in such notice. 
  
 Section 15.3 Committee Responsibilities.

  
 The Committee shall, subject to the responsibilities of
the Board, have the following responsibilities: 
  
 (a) To review the performance of the Plan Administrator; 
  
 (b) To hear and decide appeals, pursuant to the claims procedure contained in section 15.5 of the Plan, taken from the decisions of the Plan Administrator; 
  
 (c) To hear and decide questions, including interpretation
of the Plan, as may be referred to the Committee by the Plan Administrator; 
  
 (d) To review the performance of the Trustee and such investment managers as may be appointed in or pursuant to the Trust Agreement in investing, managing and controlling the assets of the Plan; 
  
 (e) To the extent required by ERISA, to establish a funding
policy and method consistent with the objectives of the Plan and the requirements of ERISA, and to review such policy and method at least annually; 
  
 (f) To report and make recommendations to the Board regarding changes in the Plan, including changes in the operation and management of
the Plan and removal and replacement of the Trustee and such investment managers as may be appointed in or pursuant to the Trust Agreement; 
  
 (g) To designate an Alternate Plan Administrator to serve in the event that the Plan Administrator is absent or otherwise unable to
discharge his responsibilities; 
  
 (h) To remove
and replace the Plan Administrator or Alternate, or both of them, and to fill a vacancy in either office; 
  
 (i) To the extent provided under and subject to the provisions of the Trust Agreement, to appoint “investment managers” as
defined in section 3(38) of ERISA to manage and control (including acquiring and disposing of) all or any of the assets of the Plan; 
  
 (j) With the prior approval of the Board, to direct the Trustee to obtain one or more Share Acquisition Loans; 
  
 (k) To develop and provide procedures and forms necessary to
facilitate voting and tendering directions on a confidential basis; 
  

 42 

 (l) To discharge such other responsibilities or follow such directions as may be assigned
or given by the Board; and 
  
 (m) To perform any
duty or take any action which is allocated to the Committee under the Plan. 
  
 The Committee shall have the power and authority necessary or appropriate to carry out its responsibilities. 
  
 Section 15.4 Claims Procedure. 
  
 Any claim relating to benefits under the Plan shall be filed with the Plan Administrator on a form prescribed by him. If a claim is denied in whole or in
part, the Plan Administrator shall give the claimant written notice of such denial, which notice shall specifically set forth: 
  
 (a) The reasons for the denial; 
  
 (b) The pertinent Plan provisions on which the denial was based; 
  
 (c) Any additional material or information necessary for the claimant to perfect his claim and an
explanation of why such material or information is needed; and 
  
 (d) An explanation of the Plan’s procedure for review of the denial of the claim. 
  
 In the event that the claim is not granted and notice of denial of a claim is not furnished by the 30th day after such claim was filed, the claim shall be deemed to have
been denied on that day for the purpose of permitting the claimant to request review of the claim. 
  
 Section 15.5 Claims Review Procedure. 
  

Any person whose claim filed pursuant to section 15.4 has been denied in whole or in part by the Plan Administrator may request review of the claim by
the Committee, upon a form prescribed by the Plan Administrator. The claimant shall file such form (including a statement of his position) with the Committee no later than 60 days after the mailing or delivery of the written notice of denial
provided for in section 15.4, or, if such notice is not provided, within 60 days after such claim is deemed denied pursuant to section 15.4. The claimant shall be permitted to review pertinent documents. A decision shall be rendered by the Committee
and communicated to the claimant not later than 30 days after receipt of the claimant’s written request for review. However, if the Committee finds it necessary, due to special circumstances (for example, the need to hold a hearing), to extend
this period and so notifies the claimant in writing, the decision shall be rendered as soon as practicable, but in no event later than 120 days after the claimant’s request for review. The Committee’s decision shall be in writing and shall
specifically set forth: 
  
 (a) The reasons for
the decision; and 
  

 43 

 (b) The pertinent Plan provisions on which the decision is based. 
  
 Any such decision of the Committee shall be binding upon the claimant and the Employer, and
the Plan Administrator shall take appropriate action to carry out such decision. 
  
 Section 15.6 Allocation of Fiduciary Responsibilities and Employment of Advisors. 
  
 Any Named Fiduciary may: 
  
 (a) Allocate any of his or its responsibilities (other than trustee responsibilities) under the Plan to such other person or persons as he
or it may designate, provided that such allocation and designation shall be in writing and filed with the Plan Administrator; 
  
 (b) Employ one or more persons to render advice to him or it with regard to any of his or its responsibilities under the Plan; and

  
 (c) Consult with counsel, who may be counsel
to the Employer. 
  
 Section 15.7 Other
Administrative Provisions. 
  
 (a) Any person whose
claim has been denied in whole or in part must exhaust the administrative review procedures provided in section 15.5 prior to initiating any claim for judicial review. 
  
 (b) No bond or other security shall be required of a member of the Committee, the Plan Administrator, or any officer or
Employee of the Employer to whom fiduciary responsibilities are allocated by a Named Fiduciary, except as may be required by ERISA. 
  
 (c) Subject to any limitation on the application of this section 15.7(c) pursuant to ERISA, neither the Plan Administrator, nor a member of the Committee,
nor any officer or Employee of the Employer to whom fiduciary responsibilities are allocated by a Named Fiduciary, shall be liable for any act of omission or commission by himself or by another person, except for his own individual willful and
intentional malfeasance. 
  
 (d) The Plan Administrator or the
Committee may, except with respect to actions under section 15.5, shorten, extend or waive the time (but not beyond 60 days) required by the Plan for filing any notice or other form with the Plan Administrator or the Committee, or taking any other
action under the Plan. 
  
 (e) The Plan Administrator or the
Committee may direct that the costs of services provided pursuant to section 15.6, and such other reasonable expenses as may be incurred in the administration of the Plan, shall be paid out of the funds of the Plan unless the Employer shall pay
them. 
  
 (f) Any person, group of persons, committee, corporation
or organization may serve in more than one fiduciary capacity with respect to the Plan. 
  

 44 

 (g) Any action taken or omitted by any fiduciary with respect to the Plan, including any decision,
interpretation, claim denial or review on appeal, shall be conclusive and binding on all interested parties and shall be subject to judicial modification or reversal only to the extent it is determined by a court of competent jurisdiction that such
action or omission was arbitrary and capricious and contrary to the terms of the Plan. 
  
 ARTICLE XVI 
  
 AMENDMENT, TERMINATION AND TAX QUALIFICATION 
  
 Section 16.1 Amendment and Termination by Charter Financial Corporation 
  
 The Participating Employers expect to continue the Plan indefinitely, but specifically reserve the right, in their sole discretion, at any time, by
appropriate action of their respective boards of directors or other authorized officials, to amend, in whole or in part, any or all of the provisions of the Plan and to terminate the Plan at any time. Subject to the provisions of section 16.2, no
such amendment or termination shall permit any part of the Trust Fund to be used for or diverted to purposes other than for the exclusive benefit of Participants, Former Participants, Beneficiaries or other persons entitled to benefits, and no such
amendment or termination shall reduce the accrued benefit of any Participant, Former Participant, Beneficiary or other person who may be entitled to benefits, without his consent. In the event of a termination or partial termination of the Plan, or
in the event of a complete discontinuance of the Participating Employer’s contributions to the Plan, the Accounts of each affected person shall forthwith become nonforfeitable and shall be payable in accordance with the provisions of Article
XIII. 
  
 Section 16.2 Amendment or Termination Other
Than by Charter Financial Corporation 
  
 In the
event that a corporation or trade or business other than Charter Financial Corporation shall adopt this Plan, such corporation or trade or business shall, by adopting the Plan, empower Charter Financial Corporation, to amend or terminate the Plan,
insofar as it shall cover employees of such corporation or trade or business, upon the terms and conditions set forth in section 16.1; provided, however, that any such corporation or trade or business may, by action of its board of directors
or other governing body, amend or terminate the Plan, insofar as it shall cover employees of such corporation or trade or business, at different times and in a different manner. In the event of any such amendment or termination by action of the
board of directors or other governing body of such a corporation or trade or business, a separate plan shall be deemed to have been established for the employees of such corporation or trade or business, and the assets of such plan shall be
segregated from the assets of this Plan at the earliest practicable date and shall be dealt with in accordance with the documents governing such separate plan. 
  

Section 16.3 Conformity to Internal Revenue Code. 
  
 The Participating Employers have established the Plan with the intent that the Plan and Trust will at all times be qualified
under section 401(a) and exempt under section 501(a) of the Code and with the intent that contributions under the Plan will be allowed as 

  

 45 

 
deductions in computing the net income of the Participating Employers for federal income tax purposes, and the provisions of the Plan and Trust Agreement
shall be construed to effectuate such intentions. Accordingly, notwithstanding anything to the contrary hereinbefore provided, the Plan and the Trust Agreement may be amended at any time without prior notice to Participants, Former Participants,
Beneficiaries or any other persons entitled to benefits, if such amendment is deemed by the Board to be necessary or appropriate to effectuate such intent. 
  
 Section 16.4 Contingent Nature of Contributions. 
  
 (a) All Discretionary Contributions and Loan Repayment Contributions to the Plan are conditioned upon the issuance by the
Internal Revenue Service of a determination that the Plan and Trust are qualified under section 401(a) of the Code and exempt under section 501(a) of the Code. If the Participating Employers apply to the Internal Revenue Service for such a
determination within 90 days after the date on which it files its federal income tax return for its taxable year that includes the last day of the Plan Year in which the Plan is adopted, and if the Internal Revenue Service issues a determination
that the Plan and Trust are not so qualified or exempt, all Discretionary Contributions made by the Participating Employers prior to the date of receipt of such a determination may, at the election of the Participating Employers, be returned to the
Participating Employers within one year after the date of such determination. 
  
 (b) All Discretionary Contributions and Loan Repayment Contributions to the Plan are made upon the condition that such Discretionary Contributions and Loan Repayment Contributions will be allowed as a deduction in
computing the net income of the Employer for federal income tax purposes. To the extent that any such deduction is disallowed, the amount disallowed may, at the election of the Participating Employers, be returned to the Participating Employers
within one year after the deduction is disallowed. 
  
 (c) Any
contribution to the Plan made by the Participating Employers as a result of a mistake of fact may, at the election of the Participating Employers, be returned to the Participating Employers within one year after such contribution is made.

  
 ARTICLE XVII 
  
 SPECIAL RULES FOR TOP HEAVY PLAN YEARS 
  
 Section 17.1 In General. 
  
 As of the Determination Date for each Plan Year, the Plan Administrator shall
determine whether the Plan is a Top Heavy Plan in accordance with the provisions of this Article XVII. If, as of such Determination Date, the Plan is a Top Heavy Plan, then the Plan Year immediately following such Determination Date shall be a Top
Heavy Plan Year and the special provisions of this Article XVII shall be in effect; provided, however, that if, as of the Determination Date for the Plan Year in which the Effective Date occurs, the Plan is a Top Heavy Plan, such Plan Year
shall be a Top Heavy Plan Year, and the provisions of this Article XVII shall be given retroactive effect for such Plan Year. 
  

 46 

 Section 17.2 Definition of Top Heavy Plan. 
  
 (a) Subject to section 17.2(c), the Plan is a Top Heavy Plan if, as of a
Determination Date: (i) it is not a member of a Required Aggregation Group, and (ii)(A) the sum of the Cumulative Accrued Benefits of all Key Employees exceeds 60% of (B) the sum of the Cumulative Accrued Benefits of all Employees (excluding former
Key Employees), former Employees (excluding former Key Employees and other former Employees who have not performed any services for the Company or any Affiliated Employer during the immediately preceding 5 Plan Years if the Determination Date is
before January 1, 2002 and one Plan Year if the Determination Date is after December 31, 2001) and their Beneficiaries. 
  
 (b) Subject to section 17.2(c), the Plan is a Top Heavy Plan if, as of a Determination Date: (i) the Plan is a member of a Required Aggregation Group, and
(ii)(A) the sum of the Cumulative Accrued Benefits of all Key Employees under all plans that are members of the Required Aggregation Group exceeds 60% of (B) the sum of the Cumulative Accrued Benefits of all Employees (excluding former Key
Employees), former Employees (excluding former Key Employees and other former Employees who have not performed any services for the Company or any Affiliated Employer during the immediately preceding 5 Plan Years if the Determination is before
January 1, 2002 and one Plan Year if the Determination Date is after December 31, 2001), and their Beneficiaries under all plans that are members of the Required Aggregation Group. 
  
 (c) Notwithstanding sections 17.2(a) and 17.2(b), the Plan is not a Top Heavy Plan if, as of a Determination Date: (i) the
Plan is a member of a Permissible Aggregation Group, and (ii)(A) the sum of the Cumulative Accrued Benefits of all Key Employees under all plans that are members of the Permissible Aggregation Group does not exceed 60% of (B) the sum of the
Cumulative Accrued Benefits of all Employees (excluding former Key Employees), former Employees (excluding former Key Employees and other former Employees who have not performed any services for the Company or any Affiliated Employer during the
immediately preceding 5 Plan Years if the Determination Date is before January 1, 2002 and one Plan Year if the Determination Date is after December 31, 2001), and their Beneficiaries under all plans that are members of the Permissible Aggregation
Group. 
  
 Section 17.3 Determination
Date. 
  
 The Determination Date for the Plan Year
in which the Effective Date occurs shall be the last day of such Plan Year, and the Determination Date for each Plan Year beginning after the Plan Year in which the Effective Date occurs shall be the last day of the preceding Plan Year. The
Determination Date for any other qualified plan maintained by the Employer for a plan year shall be the last day of the preceding plan year of each such plan, except that in the case of the first plan year of such plan, it shall be the last day of
such first plan year. 
  
 Section 17.4 Cumulative
Accrued Benefits. 
  
 (a) An individual’s
Cumulative Accrued Benefits under this Plan as of a Determination Date are equal to the sum of: 
  
 (i) the balance credited to such individual’s Account under this Plan as of the most recent Valuation Date preceding the
Determination Date; 
  

 47 

 (ii) the amount of any Discretionary Contributions or Loan Repayment Contributions made
after such Valuation Date but on or before the Determination Date; and 
  
 (iii) the amount of any distributions of such person’s Cumulative Accrued Benefits under the Plan (including, for Plan Years beginning after December 31, 2001, distributions under terminated plans that would have
been included in the Required Aggregation Group if not terminated) during the 5-year period (for all distributions for Plan Years beginning before January 1, 2002 and for in-service distributions for Plan Years beginning after December 31, 2001) or
1-year period (for all distributions other than in-service distributions for Plan Years beginning after December 31, 2001) ending on the Determination Date. 
  
 For purposes of this section 17.4(a), the computation of an individual’s Cumulative Accrued Benefits, and the extent to which distributions, rollovers and transfers
are taken into account, will be made in accordance with section 416 of the Code and the regulations thereunder. 
  
 (b) For purposes of this Plan, the term “Cumulative Accrued Benefits” with respect to any other qualified plan, shall mean the cumulative
accrued benefits determined for purposes of section 416 of the Code under the provisions of such plans. 
  
 (c) For purposes of determining the top heavy status of a Required Aggregation Group or a Permissible Aggregation Group, the Cumulative Accrued Benefits
under this Plan and the Cumulative Accrued Benefits under any other plan shall be determined as of the Determination Date that falls within the same calendar year as the Determination Dates for all other members of such Required Aggregation Group or
Permissible Aggregation Group. 
  
 Section 17.5 Key
Employees. 
  
 (a) For purposes of the Plan, the
term Key Employee means any employee or former employee of the Employer or any Affiliated Employer who is at any time during the current Plan Year or was at any time during the immediately preceding four Plan Years: 
  
 (i) a Five Percent Owner; 
  
 (ii) a person who would be described in section 1.25 if the
number “1%” were substituted for the number “5%” in section 1.25 and who has an annual Total Compensation from the Employer and any Affiliated Employer of more than $150,000; 
  
 (iii) an Officer of the Employer or any Affiliated Employer
who has an annual Total Compensation greater than 50% of the amount in effect under section 415(b)(1)(A) of the Code for any such Plan Year; or 
  

 48 

 (iv) in plan years beginning before January 1, 2002, one of the ten persons owning the
largest interests in the Employer and having an annual Total Compensation from the Employer or any Affiliated Employer in excess of the dollar limitation in effect under section 415(c)(1)(A) of the Code for such Plan Year. 
  
 (b) For purposes of section 17.5(a): 
  
 (i) for purposes of section 17.5(a)(iii), in the event the
Employer or any Affiliated Employer has more officers than are considered Officers, the term Key Employee shall mean those officers, up to the maximum number, with the highest annual compensation in any one of the five consecutive Plan Years ending
on the Determination Date; and 
  
 (ii) for
purposes of section 17.5(a)(iv), if two or more persons have equal ownership interests in the Employer, each such person shall be considered as having a larger ownership interest than any such person with a lower annual compensation from the
Employer or any Affiliated Employer. 
  
 (c) For purposes of
section 17.5(a): (i) a person’s compensation from Affiliated Employers shall be aggregated, but his ownership interests in Affiliated Employers shall not be aggregated; (ii) an employee shall only be deemed to be an officer if he has the power
and responsibility of a person who is an officer within the meaning of section 416 of the Code; and (iii) the term Key Employee shall also include the Beneficiary of a deceased Key Employee. 
  
 Section 17.6 Required Aggregation Group.

  
 For purposes of this Article XVII, a Required Aggregation
Group shall consist of (a) this Plan; (b) any other qualified plans currently maintained (or previously maintained and terminated within the five year period ending on the Determination Date) by the Employer and any Affiliated Employers that cover
Key Employees; and (c) any other qualified plans currently maintained (or previously maintained and terminated within the five year period ending on the Determination Date) by the Employer and any Affiliated Employers that cover Key Employees that
are required to be aggregated for purposes of satisfying the requirements of sections 401(a)(4) or 410(b) of the Code. 
  
 Section 17.7 Permissible Aggregation Group. 
  
 For purposes of this Article XVII, a Permissible Aggregation Group shall consist of (a) the Required Aggregation Group and
(b) any other qualified plans maintained by the Employer and any Affiliated Employers; provided, however, that the Permissible Aggregation Group must satisfy the requirements of sections 401(a)(4) and 410(b) of the Code. 
  
 Section 17.8 Special Requirements During Top Heavy Plan
Years. 
  
 Notwithstanding any other provision of
the Plan to the contrary, for each Top Heavy Plan Year, in the case of a Participant (other than a Key Employee) on the last day of such 

  

 49 

 
Top Heavy Plan Year who is not also a participant in another qualified plan which satisfies the minimum contribution and benefit requirements of section 416
of the Code with respect to such Participant, the sum of the Discretionary Contributions and Loan Repayment Contributions made with respect to such Participant, when expressed as a percentage of his Total Compensation for such Top Heavy Plan Year,
shall not be less than 3% of such Participant’s Total Compensation for such Top Heavy Plan Year or, if less, the highest combined rate, expressed as a percentage of Total Compensation at which Discretionary Contributions and Loan Repayment
Contributions were made on behalf of a Key Employee for such Top Heavy Plan Year. The Employer shall make an additional contribution to the Account of each Participant to the extent necessary to satisfy the foregoing requirement. 
  
 ARTICLE XVIII 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 18.1 Governing Law. 
  
 The Plan shall be construed, administered and enforced according to the laws
of the State of Georgia without giving effect to the conflict of laws principles thereof, except to the extent that such laws are preempted by federal law. 
  
 Section 18.2 No Right to Continued Employment. 
  
 Neither the establishment of the Plan, nor any provisions of the Plan or of the Trust Agreement establishing the Trust Fund
nor any action of the Plan Administrator, the Committee or the Trustee, shall be held or construed to confer upon any Employee any right to a continuation of employment by any Affiliated Employer. Each Affiliated Employer reserves the right to
dismiss any Employee or otherwise deal with any Employee to the same extent as though the Plan had not been adopted. 
  
 Section 18.3 Construction of Language. 
  
 Wherever appropriate in the Plan, words used in the singular may be read in the plural, words used in the plural may be read
in the singular, and words importing the masculine gender may be read as referring equally to the feminine and the neuter. Any reference to an Article or section number shall refer to an Article or section of the Plan, unless otherwise indicated.

  
 Section 18.4 Headings. 

 
 The headings of Articles and sections are included solely for convenience
of reference. If there is any conflict between such headings and the text of the Plan, the text shall control. 
  
 Section 18.5 Merger with Other Plans. 
  

The Plan shall not be merged or consolidated with, nor transfer its assets or liabilities to, any other plan unless each Participant, Former
Participant, Beneficiary and other 

  

 50 

 
person entitled to benefits, would (if that plan then terminated) receive a benefit immediately after the merger, consolidation or transfer which is equal to
or greater than the benefit he would have been entitled to receive if the Plan had terminated immediately before the merger, consolidation or transfer. 
  
 Section 18.6 Non-alienation of Benefits. 
  
 (a) Except as provided in section 18.6(b) and (c), the right to receive a benefit under the Plan shall not be subject in any
manner to anticipation, alienation or assignment, nor shall such right be liable for or subject to debts, contracts, liabilities or torts. Should any Participant, Former Participant or other person attempt to anticipate, alienate or assign his
interest in or right to a benefit, or should any person claiming against him seek to subject such interest or right to legal or equitable process, all the interest or right of such Participant or Former Participant or other person entitled to
benefits in the Plan shall cease, and in that event such interest or right shall be held or applied, at the direction of the Plan Administrator, for or to the benefit of such Participant or Former Participant, or other person or his spouse, children
or other dependents in such manner and in such proportions as the Plan Administrator may deem proper. 
  
 (b) This section 18.6 shall not prohibit the Plan Administrator from recognizing a Domestic Relations Order that is determined to be a Qualified Domestic
Relations Order in accordance with section 18.7. 
  
 (c)
Notwithstanding anything in the Plan to the contrary, a Participant’s, Former Participant’s or Beneficiary’s Accounts under the Plan may be offset by any amount such Participant, Former Participant or Beneficiary is required or
ordered to pay to the Plan if: 
  
 (i) the order
or requirement to pay arises: (A) under a judgment issued on or after August 5, 1997 of conviction for a crime involving the Plan; (B) under a civil judgment (including a consent order or decree) entered by a court on or after August 5, 1997 in an
action brought in connection with a violation (or alleged violation) of part 4 of subtitle B of title I of ERISA; or (C) pursuant to a settlement agreement entered into on or after August 5, 1997 between the Participant, Former Participant or
Beneficiary and one or both of the United States Department of Labor and the Pension Benefit Guaranty Corporation in connection with a violation (or alleged violation) of part 4 of subtitle B of title I of ERISA by a fiduciary or any other person;
and 
  
 (ii) the judgment, order, decree or
settlement agreement expressly provides for the offset of all or part of the amount ordered or required to be paid to the Plan against the Participant’s, Former Participant’s or Beneficiary’s benefits under the Plan. 
  
 Section 18.7 Procedures Involving Domestic Relations
Orders. 
  
 Upon receiving a Domestic Relations
Order, the Plan Administrator shall segregate in a separate account or in an escrow account or separately account for the amounts payable to any person pursuant to such Domestic Relations Order, pending a determination 

  

 51 

 
whether such Domestic Relations Order constitutes a Qualified Domestic Relations Order, and shall give notice of the receipt of the Domestic Relations Order
to the Participant or Former Participant and each other person affected thereby. If, within 18 months after receipt of such Domestic Relations Order, the Plan Administrator, a court of competent jurisdiction or another appropriate authority
determines that such Domestic Relations Order constitutes a Qualified Domestic Relations Order, the Plan Administrator shall direct the Trustee to pay the segregated amounts (plus any interest thereon) to the person or persons entitled thereto under
the Qualified Domestic Relations Order. If it is determined that the Domestic Relations Order is not a Qualified Domestic Relations Order or if no determination is made within the prescribed 18-month period, the segregated amounts shall be
distributed as though the Domestic Relations Order had not been received, and any later determination that such Domestic Relations Order constitutes a Qualified Domestic Relations Order shall be applied only with respect to benefits that remain
undistributed on the date of such determination. The Plan Administrator shall be authorized to establish such reasonable administrative procedures as he deems necessary or appropriate to administer this section 18.7. This section 18.7 shall be
construed and administered so as to comply with the requirements of section 401(a)(13) of the Code. 
  
 Section 18.8 Leased Employees. 
  
 (a) Subject to section 18.8(b), a leased employee shall be treated as an Employee for purposes of the Plan. For purposes of this section 18.8, the term
“leased employee” means any person (i) who would not, but for the application of this section 18.8, be an Employee and (ii) who pursuant to an agreement between an Affiliated Employer and any other person (“leasing organization”)
has performed services for the Affiliated Employer (or for the Affiliated Employer and related persons determined in accordance with section 414(n)(6) of the Code), on a substantially full-time basis for a period of at least one year under the
primary direction or control of an Affiliated Employer. 
  
 (b)
For purposes of the Plan: 
  
 (i) contributions
or benefits provided to the leased employee by the leasing organization which are attributable to services performed for the Employer shall be treated as provided by the Employer; and 
  
 (ii) section 18.8(a) shall not apply to a leased employee if: 
  
 (A) the number of leased employees performing services for
the Employer does not exceed 20% of the number of the Employer’s Employees who are not Highly Compensated Employees; and 
  
 (B) such leased employee is covered by a money purchase pension plan providing (I) a nonintegrated contribution rate of at least 10% of
the leased employee’s compensation; (II) immediate participation; (III) full and immediate vesting; and (IV) coverage for all of the employees of the leasing organization (other than employees who perform substantially all of their services for
the leasing organization). 
  

 52 

 Section 18.9 Status as an Employee Stock Ownership Plan. 
  
 It is intended that the Plan constitute an “employee stock ownership
plan,” as defined in section 4975(e)(7) of the Code and section 407(d)(6) of ERISA. The Plan shall be construed and administered to give effect to such intent. 
  

 53

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