Document:

<PAGE>

                                                                    EXHIBIT 10.2

                            BENEFIT RESTORATION PLAN

                                       OF

                             CHARTER FINANCIAL CORP.

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

                     Effective as of the Reorganization Date
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
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                                                      Article I

                                                     Definitions

Section 1.1    Affiliated Employer....................................................................       1
Section 1.2    Applicable Limitation..................................................................       1
Section 1.3    Bank...................................................................................       1
Section 1.4    Beneficiary............................................................................       1
Section 1.5    Board..................................................................................       2
Section 1.6    Code...................................................................................       2
Section 1.7    Committee..............................................................................       2
Section 1.8    Company................................................................................       2
Section 1.9    Eligible Employee......................................................................       2
Section 1.10   Employee...............................................................................       2
Section 1.11   Employer...............................................................................       2
Section 1.12   Employer Contributions.................................................................       2
Section 1.13   ERISA..................................................................................       2
Section 1.14   ESOP...................................................................................       2
Section 1.15   Exchange Act...........................................................................       2
Section 1.16   Fair Market Value of a Share...........................................................       2
Section 1.17   Former Participant.....................................................................       3
Section 1.18   Savings Plan...........................................................................       3
Section 1.19   Participant............................................................................       3
Section 1.20   Plan...................................................................................       3
Section 1.21   Share..................................................................................       3
Section 1.22   Stock Unit.............................................................................       3
Section 1.23   Termination of Service.................................................................       3

                                                      Article II

                                                     Participation

Section 2.1    Eligibility for Participation..........................................................       3
Section 2.2    Commencement of Participation..........................................................       4
Section 2.3    Termination of Participation...........................................................       4
</TABLE>

                                       (i)

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                                                     Article III

                                              Benefits to Participants

 Section 3.1   Supplemental Savings Benefit...........................................................       4
 Section 3.2   Supplemental ESOP Benefits.............................................................       5
 Section 3.3   Restored ESOP Benefits.................................................................       7

                                                     Article IV

                                                   Death Benefits

 Section 4.1   Supplemental Savings Plan Death Benefits...............................................       8
 Section 4.2   Supplemental ESOP Death Benefits.......................................................       8
 Section 4.3   Restored ESOP Death Benefits...........................................................       8
 Section 4.4   Beneficiaries..........................................................................       8

                                                      Article V

                                                      Trust Fund

 Section 5.1   Establishment of Trust.................................................................       9
 Section 5.2   Contributions to Trust.................................................................       9
 Section 5.3   Unfunded Character of Plan.............................................................       9

                                                     Article VI

                                                   Administration

 Section 6.1   The Committee.........................................................................       10
 Section 6.2   Liability of Committee Members and their Delegates....................................       11
 Section 6.3   Plan Expenses.........................................................................       11
 Section 6.4   Facility of Payment...................................................................       11
</TABLE>

                                  (ii)
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                                                    Article VII

                                             Amendment and Termination

 Section 7.1   Amendment by the Company..............................................................     12
 Section 7.2   Termination...........................................................................     12
 Section 7.3   Amendment or Termination by Other Employers...........................................     12

                                                    Article VIII

                                              Miscellaneous Provisions

 Section 8.1   Construction and Language.............................................................     13
 Section 8.2   Headings..............................................................................     13
 Section 8.3   Non-Alienation of Benefits............................................................     13
 Section 8.4   Indemnification.......................................................................     13
 Section 8.5   Severability..........................................................................     13
 Section 8.6   Waiver................................................................................     14
 Section 8.7   Governing Law.........................................................................     14
 Section 8.8   Taxes.................................................................................     14
 Section 8.9   No Deposit Account....................................................................     14
 Section 8.10  No Right to Continued Employment......................................................     14
 Section 8.11  Status of Plan Under ERISA............................................................     14
</TABLE>

                                     (iii)
<PAGE>

                           Benefit Restoration Plan
                           ------------------------

                                      Of
                                      --

                         Charter Financial Corp., Inc.
                         -----------------------------

                                   Article I
                                   ---------

                                  Definitions
                                  -----------

               Wherever appropriate to the purposes of the Plan, capitalized
terms shall have the meanings assigned to them under the Savings Plan or ESOP,
as applicable; provided, however, that the following special definitions shall
apply for purposes of the Plan, unless a different meaning is clearly indicated
by the context:

               Section 1.1  Affiliated Employer means 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 1.2  Applicable Limitation means any of the following:
                            ---------------------
(a) the limitation on annual compensation that may be recognized under a tax-
qualified plan for benefit computation purposes pursuant to section 401(a)(17)
of the Code; (b) the maximum limitation on annual additions to a tax-qualified
defined contribution plan pursuant to section 415(c) of the Code; (c) the
maximum limitation on aggregate annual benefits and annual additions under a
combination of tax-qualified defined benefit and defined contribution plans
maintained by a single employer pursuant to section 415(e) of the Code; (d) the
maximum limitation on annual elective deferrals to a qualified cash or deferred
arrangement pursuant to section 402(g) of the Code; (e) the annual limitation on
elective deferrals under a qualified cash or deferred arrangement by highly
compensated employees pursuant to section 401(k) of the Code; and (f) the annual
limitation on voluntary employee contributions by, and employer matching
contributions for, highly compensated employees pursuant to section 401(m) of
the Code.

               Section 1.3  Bank means CharterBank, a federally-chartered
                            ----
savings bank and its successors or assigns.

               Section 1.4  Beneficiary means any person, other than a
                            -----------
Participant or Former Participant, who is determined to be entitled to benefits
under the terms of the Plan.
<PAGE>

               Section 1.5    Board means the Board of Directors of Company.
                              -----

               Section 1.6    Code means the Internal Revenue Code of 1986
                              ----
(including the corresponding provisions of any prior law or succeeding law).

               Section 1.7    Committee means the Personnel & Compensation
                              ---------
Committee of the Board of Directors of the Company, or such other person,
committee or other entity as shall be designated by or on behalf of the Board to
perform the duties set forth in Article VI.

               Section 1.8    Company means Charter Financial Corp., a federal
                              -------
corporation, or any successor thereto.

               Section  1.9   Eligible Employee means an Employee who is
                              -----------------
eligible for participation in the Plan in accordance with the provisions of
Article II.

               Section 1.10   Employee means any person, including an officer,
                              --------
who is employed by the Employer.

               Section 1.11   Employer means the Bank and any successor thereto
                              --------
and the Company and any successor thereto and any Affiliated Employer which,
with the prior written approval of the Board of Directors of the Bank and
subject to such terms and conditions as may be imposed by the Board, shall adopt
this Plan.

               Section 1.12   Employer Contributions means contributions by any
                              ----------------------
Employer to the Savings Plan or the ESOP.

               Section 1.13   ERISA means the Employee Retirement Income
                              -----
Security Act of l974, as amended from time to time (including the corresponding
provisions of any succeeding law).

               Section 1.14   ESOP means the Employee Stock Ownership Plan of
                              ----
Charter Financial Corp., as amended from time to time (including the
corresponding provisions of any successor qualified employee stock ownership
plan adopted by the Company).

               Section 1.15   Exchange Act means the Securities Exchange Act of
                              ------------
1934, as amended from time to time (including the corresponding provisions of
any succeeding law).

               Section 1.16   Fair Market Value of a Share means, with respect
                              ----------------------------
to a Share on a specified date:

               (a)  the final reported sales 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) 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 the Shares are listed or admitted to trading; or

                                       2
<PAGE>

               (b)  if the Shares are not listed or admitted to trading on any
          such exchange, the closing bid quotation with respect to a Share on
          such date on the National Association of Securities Dealers Automated
          Quotations System, or, if no such quotation is provided, on another
          similar system, selected by the Committee, then in use; or

               (c)  if sections 1.16(a) and (b) are not applicable, the fair
          market value of a Share as the Committee may determine.

               Section 1.17   Former Participant means a person whose
                              ------------------
participation in the Plan has terminated as provided under section 2.3.

               Section 1.18   Savings Plan means the tax-qualified 401(k) plan
                              ------------
maintained by the Company or the Bank from time to time.

               Section 1.19   Participant means any person who is participating
                              -----------
in the Plan in accordance with its terms.

               Section 1.20   Plan means the Benefit Restoration Plan of
                              ----
Charter Financial Corp. as amended from time to time (including the
corresponding provisions of any successor plan adopted by the Company).

               Section 1.21   Share means a share of common stock, par value
                              -----
$.01 per share, of Charter Financial Corp.

               Section 1.22   Stock Unit means a right to receive a payment
                              ----------
under the Plan in an amount equal, on the date as of which such payment is made,
to the Fair Market Value of a Share.

               Section 1.23   Termination of Service means an Employee's
                              ----------------------
separation from service with all Employers as an Employee, whether by
resignation, discharge, death, disability, retirement or otherwise.

                                  Article II
                                  ----------

                                 Participation
                                 -------------

               Section 2.1    Eligibility for Participation.
                              -----------------------------

               Only Eligible Employees may become Participants. An Employee
shall become an Eligible Employee if:

               (a)  he holds the office of Chief Executive Officer of the Bank
          or the Company, or he has been designated an Eligible Employee by
          resolution of the Board; and

                                       3
<PAGE>

               (b)  he is a participant in the Savings Plan or the ESOP, or any
          combination thereof, and the benefits to which he is entitled
          thereunder are limited by one or more of the Applicable Limitations;

provided, however, that no person shall be named an Eligible Employee, nor shall
any person who has been an Eligible Employee continue as an Eligible Employee,
to the extent that such person's participation, or continued participation, in
the Plan would cause the Plan to fail to be considered maintained for the
primary purpose of providing deferred compensation for a select group of
management or highly compensated employees for purposes of ERISA.

               Section 2.2    Commencement of Participation.
                              -----------------------------

               An Employee shall become a Participant on the date when he first
becomes an Eligible Employee, unless the Committee shall, by resolution,
establish an earlier or later effective date of participation for a Participant.

               Section 2.3    Termination of Participation.
                              ----------------------------

               Participation in the Plan shall cease on the earlier of (a) the
date of the Participant's Termination of Service or (b) the date on which he
ceases to be an Eligible Employee.

                                  Article III
                                  -----------

                           Benefits to Participants
                           ------------------------

               Section 3.1    Supplemental Savings Benefit.
                              ----------------------------

               (a)  A Participant whose benefits under the Savings Plan are
limited by one or more of the Applicable Limitations shall be eligible for a
supplemental savings benefit under this Plan in an amount equal to:

                    (i)  the aggregate amount of Employer Contributions
     (including any reallocation of amounts forfeited upon the termination of
     employment of others participating in the Savings Plan) that would have
     been credited to the Participant's account under the Savings Plan in the
     absence of the Applicable Limitations if for all relevant periods he had
     made the maximum amount of elective deferrals, within the meaning of
     section 402(g)(3) of the Code, or voluntary employee contributions, within
     the meaning of section 401(a) of the Code, required to qualify for the
     maximum possible allocation of Employer Contributions (and without regard
     to the amount of elective deferrals or voluntary employee contributions
     actually made); over

                                       4
<PAGE>

                    (ii) the aggregate amount of Employer Contributions
     (including any reallocation of amounts forfeited upon the termination of
     employment of others participating in the Savings Plan) actually credited
     to the Participant's account under the Savings Plan for such periods;

adjusted for earnings and losses as provided in section 3.1(b); provided,
however, that if the Participant dies before the payment of such supplemental
savings benefit begins, no benefit shall be payable under this section 3.1 and
the survivor benefit, if any, which may be payable shall be determined under
section 4.1.

               (b)  The Committee shall cause to be maintained a bookkeeping
account to reflect all Employer Contributions (including any reallocation of
amounts forfeited upon the termination of employment of others participating in
the Savings Plan) that cannot be made to a Participant's account under the
Savings Plan due to the Applicable Limitations and shall cause such bookkeeping
account to be credited with all such Employer Contributions as of the date on
which such Employer Contributions would have been credited to the Participant's
account in the Savings Plan in the absence of the Applicable Limitations. The
balance credited to such bookkeeping account shall be adjusted for earnings or
losses as follows:

                    (i)  except as provided in section 3.1(b)(ii), the balance
     credited to such bookkeeping account shall be credited with interest as of
     the last day of each calendar month at a rate for such month equal to one-
     twelfth of the annual interest rate prescribed by the Commissioner of
     Internal Revenue for such month pursuant to section 417(e) of the Code; or

                    (ii) if and to the extent permitted by the Committee, as
     though such Employer Contributions had been contributed to a trust fund and
     invested, for the benefit of the Participant, in such investments at such
     time or times as the Participant shall have designated in such form and
     manner as the Committee shall prescribe.

               (c)  The supplemental savings benefit payable to a Participant
hereunder shall be paid in a single lump sum as soon as practicable following
the last day of the calendar year in which the Participant's Termination of
Service occurs and shall be equal to the balance credited to his bookkeeping
account as of the last day of the last calendar month to end prior to the date
of payment. Notwithstanding the foregoing, a Participant may specify that such
supplemental savings benefit be paid in a different form or commencing at a
different time by filing a written election, in such form and manner as the
Committee may prescribe; provided, however, that no such election or change made
thereto shall be given effect unless it is made at least twelve months prior to
the Participant's Termination of Service.

               Section 3.2    Supplemental ESOP Benefits.
                              --------------------------

               (a)  A Participant whose benefits under the ESOP are limited by
one or more of the Applicable Limitations shall be eligible for a supplemental
ESOP benefit under this Plan in an amount equal to the sum of:

                                       5
<PAGE>

                    (i)   a number of Stock Units equal to the excess (if any)
     of (A) the aggregate number of Shares (including any reallocation of Shares
     forfeited upon the termination of employment of others participating in the
     ESOP) that would have been credited to the Participant's account under the
     ESOP in the absence of the Applicable Limitations over (B) the number of
     Shares actually credited to his account under the ESOP; plus

                    (ii)  if and to the extent that Employer Contributions to
     the ESOP result in allocations to the Participant's account of assets other
     than Shares, an amount equal to the excess (if any) of (A) the aggregate
     amount of Employer Contributions (including any reallocation of amounts
     forfeited upon the termination of employment of others participating in the
     ESOP) that would have been credited to the Participant's account under the
     ESOP in the absence of the Applicable Limitations over (B) the aggregate
     amount of Employer Contributions (including any reallocation of amounts
     forfeited upon the termination of employment of others participating in the
     ESOP) actually credited to the Participant's account under the ESOP;

adjusted for earnings and losses as provided section 3.2(b); provided, however,
that if the Participant dies before the payment of such supplemental ESOP
benefit begins, no benefit shall be payable under this section 3.2 and the
survivor benefit, if any, which may be payable shall be determined under section
4.2.

               (b)  The Committee shall cause to be maintained a bookkeeping
account to reflect all Shares and Employer Contributions (including any
reallocation of amounts forfeited upon the termination of employment of others
participating in the ESOP) that cannot be allocated to a Participant's account
under the ESOP due to the Applicable Limitations and shall cause such
bookkeeping account to be credited with such Employer Contributions and Stock
Units reflecting such Shares as of the date on which such Employer Contributions
and Shares, respectively, would have been credited to the Participant's account
in the ESOP in the absence of the Applicable Limitations. The balance credited
to such bookkeeping account shall be adjusted for earnings or losses as follows:

                    (i)   all Stock Units shall be adjusted from time to time so
     that the value of a Stock Unit on any date is equal to the Fair Market
     Value of a Share on such date, and the number of Stock Units shall be
     adjusted as and when appropriate to reflect any stock dividend, stock
     split, reverse stock split, exchange, conversion, or other event generally
     affecting the number of Shares held by all holders of Shares; and

                    (ii)  (A) except as provided in section 3.2(b)(ii)(B), the
     balance credited to such bookkeeping account that does not consist of Stock
     Units shall be credited with interest as of the last day of each calendar
     month at a rate for such month equal to one-twelfth of the annual interest
     rate prescribed by the Commissioner of Internal Revenue for such month
     pursuant to section 417(e) of the Code; or

                                       6
<PAGE>

                          (B) if and to the extent permitted by the Committee,
     the balance credited to such bookkeeping account that does not consist of
     Stock Units shall be adjusted as though such Employer Contributions had
     been contributed to a trust fund and invested, for the benefit of the
     Participant, in such investments at such time or times as the Participant
     shall have designated in such form and manner as the Committee shall
     prescribe;

provided, however, that to the extent that the Participant shall receive on a
current basis any dividend paid with respect to Shares credited to his account
under the ESOP, the bookkeeping account established for him under this Plan
shall not be adjusted to reflect such dividend and, instead, the Participant
shall be paid an amount per Stock Unit equal to the dividend per Share received
by the Participant under the ESOP, at substantially the same time as such
dividend is paid under the ESOP.

               (c)  The supplemental ESOP benefit payable to a Participant
hereunder shall be paid in a single lump sum cash payment as soon as practicable
following the last day of the calendar year in which the Participant's
Termination of Service occurs and shall be in an amount equal to the balance
credited to his bookkeeping account. Notwithstanding the foregoing, a
Participant may specify that such supplemental ESOP benefit be paid in a
different form or commencing at a different time by filing a written election,
in such form and manner as the Committee may prescribe; provided, however, that
no such election or change made thereto shall be given effect unless it is made
at least twelve months prior to the Participant's Termination of Service.

               Section 3.3    Restored ESOP Benefits.
                              ----------------------

               (a)  A Participant who satisfies section 2.1 shall be entitled
to, upon his Termination of Service upon or after attaining age 55, an unfunded,
unsecured promise from the Bank to receive an amount determined by:

                    (i)  projecting the total number of Shares that would have
     been allocated to the Participant's account under the terms of the ESOP
     (without regard to the Applicable Limitations) had the Participant
     continued in the employ of the Bank until the ESOP loan was repaid in full
     and the final allocation of Shares acquired when the ESOP loan was made
     occurred; and then

                    (ii) multiplying the number of Shares determined in section
     3.3(a)(i) above by the average of the closing prices of such Shares at the
     end of each fiscal quarter during the preceding four fiscal quarters
     immediately preceding (or such fewer quarters as the Participant has been a
     Participant) to the Participant's retirement.

               (b)  The projection of Shares required by section 3.3(a)(i) above
shall be performed by a public accountant based on assumptions which the
Committee has approved as reasonable at the time the calculation of the benefit
payable to the Participant is performed.

               (c)  The restored ESOP benefit payable to a Participant hereunder
shall be paid in a single lump sum cash payment as soon as practicable following
the last day of the calendar year in which the Participant's Termination of
Service occurs and shall be in an amount determined

                                       7
<PAGE>

pursuant to section 3.3(a) above. Notwithstanding the foregoing, a Participant
may specify that such restored ESOP benefit be paid in a different form or
commencing at a different time by filing a written election, in such form and
manner as the Committee may prescribe; provided, however, that no such election
or change made thereto shall be given effect unless it is made at least twelve
months prior to the Participant's Termination of Service.

                                  ARTICLE IV
                                  ----------

                                DEATH BENEFITS
                                --------------

          Section 4.1 Supplemental Savings Plan Death Benefits.
                      ----------------------------------------

          If a Participant who is eligible for a supplemental savings benefit
under section 3.1 dies before the payment of such benefit begins, a supplemental
survivor's savings benefit shall be payable to the Participant's Beneficiary
under this Plan in amount equal to the balance credited to the bookkeeping
account established for the Participant under section 3.1(b). Such benefit shall
be paid in a single lump sum cash payment as soon as practicable following the
death of the Participant and the bookkeeping account established for such
Participant pursuant to section 3.1(b) shall continue to be adjusted as provided
therein through the last day of the last calendar month to end prior to the date
of payment.

          Section 4.2 Supplemental ESOP Death Benefits.
                      --------------------------------

          If a Participant who is eligible for a supplemental ESOP benefit under
section 3.2 dies before the payment of such benefit begins, a supplemental ESOP
benefit shall be payable to the Participant's Beneficiary under this Plan in
amount equal to the balance credited to the bookkeeping account established for
the Participant under section 3.2(b). Such benefit shall be paid in a single
lump sum cash payment as soon as practicable following the death of the
Participant, and the bookkeeping account established for such Participant
pursuant to section 3.2(b) shall continue to be adjusted as provided therein
through the last day of the last calendar month to end prior to the date of
payment.

          Section 4.3 Restored ESOP Death Benefits.
                      ----------------------------

          If a Participant who is eligible for a restored ESOP benefit under
section 3.3 dies before the payment of such benefit begins, a restored ESOP
benefit shall be payable to the Participant's Beneficiary under this Plan in
amount determined pursuant to section 3.3(b). Such benefit shall be paid in a
single lump sum cash payment as soon as practicable following the death of the
Participant.

          Section 4.4 Beneficiaries.
                      -------------

          A Participant or Former Participant may designate a Beneficiary or
Beneficiaries to receive any survivor benefits payable under the Plan upon his
death. Any such designation, or change therein or revocation thereof, shall be
made in writing in the form and manner prescribed by

                                       8
<PAGE>

the Committee, shall be revocable until the death of the Participant, and shall
thereafter be irrevocable; provided, however, that any change or revocation
shall be effective only if received by the Committee prior to the Participant's
or Former Participant's death. If a Participant or Former Participant shall die
without having effectively named a Beneficiary, he shall be deemed to have named
his estate as his sole Beneficiary. If a Participant or Former Participant and
his designated Beneficiary shall die in circumstances which give rise to doubt
as to which of them shall have been the first to die, the Participant or Former
Participant shall be deemed to have survived the Beneficiary. If a Participant
or Former Participant designates more than one Beneficiary, all shall be deemed
to have equal shares unless the Participant or Former Participant shall
expressly provide otherwise.

                                   ARTICLE V
                                   ---------

                                  TRUST FUND
                                  ----------

          Section 5.1 Establishment of Trust.
                      ----------------------

          The Company may establish a trust fund which may be used to accumulate
funds to satisfy benefit liabilities to Participants, Former Participants and
their Beneficiaries under the Plan; provided, however, that the assets of such
trust shall be subject to the claims of the creditors of the Company in the
event that it is determined that the Company is insolvent; and provided,
further, that the trust agreement shall contain such terms, conditions and
provisions as shall be necessary to cause the Company to be considered the owner
of the trust fund for federal, state or local income tax purposes with respect
to all amounts contributed to the trust fund or any income attributable to the
investments of the trust fund. The Company shall pay all costs and expenses
incurred in establishing and maintaining such trust. Any payments made to a
Participant, Former Participant or Beneficiary from a trust established under
this section 5.1 shall offset payments which would otherwise be payable by the
Company in the absence of the establishment of such trust. Any such trust will
conform to the terms of the model trust described in Revenue Procedure 92-64, as
the same may be modified from time to time.

          Section 5.2 Contributions to Trust.
                      ----------------------

          If a trust is established in accordance with section 5.1, the Company
shall make contributions to such trust in such amounts and at such times as may
be specified by the Committee or as may be required pursuant to the terms of the
agreement governing the establishment and operation of such trust.

          Section 5.3 Unfunded Character of Plan.
                      --------------------------

          Notwithstanding the establishment of a trust pursuant to section, the
Plan shall be unfunded for purposes of the Code and ERISA. Any liability of the
Bank, the Company or another Employer to any person with respect to benefits
payable under the Plan shall be based solely upon such contractual obligations,
if any, as shall be created by the Plan, and shall give rise only to a claim
against the general assets of the Bank, the Company or such Employer. No such
liability shall be

                                       9
<PAGE>

deemed to be secured by any pledge or any other encumbrance on any specific
property of the Bank, the Company or any other Employer.

                                  ARTICLE VI
                                  ----------

                                ADMINISTRATION
                                --------------

          Section 6.1 The Committee.
                      -------------

          Except for the functions reserved to the Bank or the Board, the
administration of the Plan shall be the responsibility of the Committee. The
Committee shall have the power and the duty to take all actions and to make all
decisions necessary or proper to carry out the Plan. The determination of the
Committee as to any question involving the general administration and
interpretation of the Plan shall be final, conclusive and binding. Any
discretionary actions to be taken under the Plan by the Committee shall be
uniform in their nature and applicable to all persons similarly situated.
Without limiting the generality of the foregoing, the Committee shall have the
following powers:

          (a)  to furnish to all Participants, upon request, copies of the Plan
     and to require any person to furnish such information as it may request for
     the purpose of the proper administration of the Plan as a condition to
     receiving any benefits under the Plan;

          (b)  to make and enforce such rules and regulations and prescribe the
     use of such forms as it shall deem necessary for the efficient
     administration of the Plan;

          (c)  to interpret the Plan, and to resolve ambiguities,
     inconsistencies and omissions, and the determinations of the Committee in
     respect thereof shall be binding, final and conclusive upon all interested
     parties;

          (d)  to decide on questions concerning the Plan in accordance with the
     provisions of the Plan;

          (e)  to determine the amount of benefits which shall be payable to any
     person in accordance with the provisions of the Plan, to hear and decide
     claims for benefits, and to provide a full and fair review to any
     Participant whose claim for benefits has been denied in whole or in part;

          (f)  to designate a person, who may or may not be a member of the
     Committee, as "plan administrator" for purposes of the ERISA;

          (g)  to allocate any such powers and duties to or among individual
     members of the Committee; and

          (h)  the power to designate persons other than Committee members to
     carry out any duty or power which would otherwise be a responsibility of
     the Committee or Administrator, under the terms of the Plan.

                                       10
<PAGE>

          Section 6.2  Liability of Committee Members and their Delegates
                       --------------------------------------------------

          To the extent permitted by law, the Committee and any person to whom
it may delegate any duty or power in connection with administering the Plan, the
Bank, the Company, any Employer, and the officers and directors thereof, shall
be entitled to rely conclusively upon, and shall be fully protected in any
action taken or suffered by them in good faith in the reliance upon, any
actuary, counsel, accountant, other specialist, or other person selected by the
Committee, or in reliance upon any tables, valuations, certificates, opinions or
reports which shall be furnished by any of them. Further, to the extent
permitted by law, no member of the Committee, nor the Bank, the Company, any
Employer, nor the officers or directors thereof, shall be liable for any
neglect, omission or wrongdoing of any other members of the Committee, agent,
officer or employee of the Bank, the Company or any Employer. Any person
claiming benefits under the Plan shall look solely to the Employer for redress.

          Section 6.3  Plan Expenses
                       -------------

          All expenses incurred prior to the termination of the Plan that shall
arise in connection with the administration of the Plan (including, but not
limited to administrative expenses, proper charges and disbursements,
compensation and other expenses and charges of any actuary, counsel, accountant,
specialist, or other person who shall be employed by the Committee in connection
with the administration of the Plan), shall be paid by the Company.

          Section 6.4  Facility of Payment.
                       -------------------

          If the Company is unable to make payment to any Participant, Former
Participant Beneficiary, or any other person to whom a payment is due under the
Plan, because it cannot ascertain the identity or whereabouts of such
Participant, Former Participant Beneficiary, or other person after reasonable
efforts have been made to identify or locate such person (including a notice of
the payment so due mailed to the last known address of such Participant, Former
Participant Beneficiary, or other person shown on the records of the Employer),
such payment and all subsequent payments otherwise due to such Participant,
Former Participant, Beneficiary or other person shall be forfeited 24 months
after the date such payment first became due; provided, however, that such
payment and any subsequent payments shall be reinstated, retroactively, no later
than 60 days after the date on which the Participant, Former Participant,
Beneficiary, or other person is identified or located.

                                       11
<PAGE>

                                  ARTICLE VII
                                  -----------

                           AMENDMENT AND TERMINATION
                           -------------------------

          Section 7.1 Amendment by the Company.
                      ------------------------

          The Company reserves the right, in its sole and absolute discretion,
at any time and from to time, by action of the Board, to amend the Plan in whole
or in part. In no event, however, shall any such amendment adversely affect the
right of any Participant, Former Participant or Beneficiary to receive any
benefits under the Plan in respect of participation for any period ending on or
before the later of the date on which such amendment is adopted or the date on
which it is made effective.

          Section 7.2  Termination.
                       -----------

          The Company also reserves the right, in its sole and absolute
discretion, by action of the Board, to terminate the Plan. In such event,
undistributed benefits attributable to participation prior to the date of
termination shall be distributed as though each Participant terminated
employment with the Bank, the Company and all other Employers as of the
effective date of termination of the Plan.

          Section 7.3  Amendment or Termination by Other Employers.
                       -------------------------------------------

          In the event that a corporation or trade or business other than the
Bank shall adopt this Plan, such corporation or trade or business shall, by
adopting the Plan, empower the Bank 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 sections 7.1 and 7.2; 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 any
amounts set aside to provide for the satisfaction of benefit liabilities with
respect to Employees of such corporation or trade or business shall be
segregated from the assets set aside for the purposes of this Plan at the
earliest practicable date and shall be dealt with in accordance with the
documents governing such separate plan.

                                       12
<PAGE>

                                 ARTICLE VIII
                                 ------------

                           MISCELLANEOUS PROVISIONS
                           ------------------------

          Section 8.1  Construction and Language.
                       -------------------------

          Wherever appropriate in the Plan, words used in the singular may be
read in the plural, words in the plural may be read in the singular, and words
importing the masculine gender shall be deemed equally to refer to the feminine
or the neuter. Any reference to an Article or section shall be to an Article or
section of the Plan, unless otherwise indicated.

          Section 8.2  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 Agreement, the text shall control.

          Section 8.3  Non-Alienation of Benefits.
                       --------------------------

          Except as may otherwise be required by law, no distribution or payment
under the Plan to any Participant, Former Participant or Beneficiary shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge, whether voluntary or involuntary, and any attempt
to so anticipate, alienate, sell, transfer, assign, pledge, encumber or charge
the same shall be void; nor shall any such distribution or payment be in any way
liable for or subject to the debts, contracts, liabilities, engagements or torts
of any person entitled to such distribution or payment. If any Participant,
Former Participant or Beneficiary is adjudicated bankrupt or purports to
anticipate, alienate, sell, transfer, assign, pledge encumber or charge any such
distribution or payment, voluntarily or involuntarily, the Committee, in its
sole discretion, may cancel such distribution or payment or may hold or cause to
be held or applied such distribution or payment, or any part thereof, to or for
the benefit of such Participant, Former Participant or Beneficiary, in such
manner as the Committee shall direct; provided, however, that no such action by
the Committee shall cause the acceleration or deferral of any benefit payments
from the date on which such payments are scheduled to be made.

          Section 8.4  Indemnification.
                       ---------------

          The Bank shall indemnify, hold harmless and defend each Participant,
Former Participant and Beneficiary, against their reasonable costs, including
legal fees, incurred by them or arising out of any action, suit or proceeding in
which they may be involved, as a result of their efforts, in good faith, to
defend or enforce the obligation of the Bank, the Company and any other Employer
under the terms of the Plan.

          Section 8.5 Severability.
                      ------------

          A determination that any provision of the Plan is invalid or
unenforceable shall not affect the validity or enforceability of any other
provision hereof.

                                       13
<PAGE>

          Section 8.6  Waiver.
                       ------

          Failure to insist upon strict compliance with any of the terms,
covenants or conditions of the Plan shall not be deemed a waiver of such term,
covenant or condition. A waiver of any provision of the Plan must be made in
writing, designated as a waiver, and signed by the party against whom its
enforcement is sought. Any waiver or relinquishment of any right or power
hereunder at any one or more times shall not be deemed a waiver or
relinquishment of such right or power at any other time or times.

          Section 8.7  Governing Law.
                       -------------

          The Plan shall be construed, administered Section 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 the federal laws of the United States. Any payments made pursuant
to this Plan are subject to and conditioned upon their compliance with 12 U.S.C.
ss. 1828(k) and any regulations promulgated thereunder.

          Section 8.8 Taxes.
                      -----

          The Employer shall have the right to retain a sufficient portion of
any payment made under the Plan to cover the amount required to be withheld
pursuant to any applicable federal, state and local tax law.

          Section 8.9  No Deposit Account.
                       ------------------

          Nothing in this Plan shall be held or construed to establish any
deposit account for any Participant or any deposit liability on the part of the
Bank. Participants' rights hereunder shall be equivalent to those of a general
unsecured creditor of each Employer.

          Section 8.10 No Right to Continued Employment.
                       --------------------------------

           Neither the  establishment  of the Plan, nor any provisions of
the Plan nor any action of the Plan Administrator, the Committee or any Employer
shall  be held  or  construed  to  confer  upon  any  Employee  any  right  to a
continuation of employment by the Employer.  The 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 8.11  Status of Plan Under ERISA.
                        --------------------------

          The Plan is intended to be (a) to the maximum extent permitted under
applicable laws, an unfunded, non-qualified excess benefit plan as contemplated
by section 3(36) of ERISA for the purpose of providing benefits in excess of the
limitations imposed under section 415 of the Code, and (b) to the extent not so
permitted, an unfunded, non-qualified plan maintained primarily for the purpose
of providing deferred compensation for highly compensated employees, as
contemplated by sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. The Plan is
not intended to comply with the requirements of section 401(a) of the Code or to
be subject to Parts 2, 3 and 4 of Title I of ERISA. The Plan shall be
administered and construed so as to effectuate this intent.

                                       14<PAGE>

                                                                    EXHIBIT 10.3

                             Employment Agreement

          This Employment Agreement (the "Agreement") is made and entered into
as of ________, 2001 by and among CharterBank, a federally-chartered savings
bank having an office at 600 Third Avenue, West Point, GA 31833 (the "Bank"),
Charter Financial Corp.,  a federally-chartered corporation having an office at
600 Third Avenue, West Point, GA 31833 (the "Company") and Robert L. Johnson, an
individual residing at 3345 Barnes Mill Road, Hamilton, GA 31811 (the
"Executive").

                            Introductory Statement

          The Bank has reorganized from a federally-chartered mutual savings
bank to a federally-chartered stock savings bank and has become a wholly-owned
subsidiary of the Company, a mid-tier stock holding company, which is majority
owned by First Charter MHC, a mutual holding company (the "Reorganization").  In
connection with the Reorganization, certain shares of the Company's common stock
were sold in an initial public stock offering.  The Executive has served the
Bank in an executive capacity for many years and is familiar with the Bank's
operations.

          The Board of Directors of the Bank and the Board of Directors of the
Company have concluded that it is in the best interests of the Bank, the Company
and their prospective shareholders to secure a continuity in management
following the Reorganization.  They also consider it desirable to establish a
working environment for the Executive which minimizes the personal distractions
that might result from possible business combinations in which the Company or
the Bank might be involved.  For these reasons, the Board of Directors of  the
Bank and the Board of Directors of the Company have decided to offer to enter
into a contract with the Executive for his future services.  The Executive has
accepted this offer.

          The terms and conditions which the Bank, the Company and the Executive
have agreed to are as follows.

                                   Agreement

          Section 1.     Employment.
                         ----------

          The Company and the Bank hereby continue to employ the Executive, and
the Executive hereby accepts such continued employment, during the period and
upon the terms and conditions set forth in this Agreement.

          Section 2.     Employment Period; Remaining Unexpired Employment
                         -------------------------------------------------
Period.
------

          (a)  The Company and the Bank shall employ the Executive during an
initial period of three (3) years beginning on the effective date of the
Reorganization (the "Employment Commencement Date") and ending on the day before
the third (3/rd/) anniversary of the Employment Commencement Date, and during
the period of any additional extensions described in section 2(b) (the
"Employment Period").
<PAGE>

          (b)  The Board of Directors of the Bank and the Company shall conduct
an annual review of the Executive's performance on or about each anniversary of
the Employment Commencement Date (each, an "Anniversary Date") and may, on the
basis of such review and by written notice to the Executive, offer to extend the
Employment Period through the day before the third (3/rd/) anniversary of the
relevant Anniversary Date.  In such event, the Employment Period shall be deemed
extended in the absence of objection from the Executive by written notice to
Bank given within ten (10) business days after his receipt of the Bank's offer
of extension.

          (c)  Except as otherwise expressly provided in this Agreement, any
reference in this Agreement to the term "Remaining Unexpired Employment Period"
as of any date shall mean the period beginning on such date and ending on the
day before the third (3/rd/) anniversary of the Employment Commencement Date or,
if later, on the day before the third (3/rd/) anniversary of the last
Anniversary Date as of which the Employment Period was extended pursuant to
section 2(b).

          (d)  Nothing in this Agreement shall be deemed to prohibit the Company
or the Bank from terminating the Executive's employment before the end of the
Employment Period with or without notice for any reason.  This Agreement shall
determine the relative rights and obligations of the Bank, the Company and the
Executive in the event of any such termination.  In addition, nothing in this
Agreement shall require the termination of the Executive's employment at the
expiration of the Employment Period.  Any continuation of the Executive's
employment beyond the expiration of the Employment Period shall be on an "at-
will" basis unless the Bank, the Company and the Executive agree otherwise.

          Section 3.     Duties.
                         ------

          The Executive shall serve as Chief Executive Officer and President of
the Company and as Chief Executive Officer and President of the Bank, having
such power, authority and responsibility and performing such duties as are
prescribed by or under their respective By-Laws and as are customarily
associated with such positions.  The Executive shall devote his full business
time and attention (other than during weekends, holidays, approved vacation
periods, and periods of illness or approved leaves of absence) to the business
and affairs of the Bank and the Company and shall use his best efforts to
advance their respective best interests.

          Section 4.     Cash Compensation.
                         -----------------

          In consideration for the services to be rendered by the Executive
hereunder, the Bank and the Company shall pay to him a salary at an initial
annual rate of ____________ ($_______), payable in approximately equal
installments in accordance with their respective customary payroll practices for
senior officers.  The Bank's and the Company's respective Boards of Directors
shall review the Executive's annual rate of salary at such times during the
Employment Period as they deem appropriate, but not less frequently than once
every twelve (12) months, and may, in their discretion, approve a salary
increase.  In addition to salary, the Executive may receive other cash
compensation from the Company or the Bank for services hereunder at such times,
in such amounts and on such terms and conditions as the Boards of Directors of
the Bank and the Company may determine.  If the Executive is discharged or
suspended, or is subject to any regulatory prohibition or

                                      -2-
<PAGE>

restriction with respect to participation in the affairs of the Bank, he shall
continue to perform services for the Company in accordance with this Agreement
but shall not directly or indirectly provide services to or participate in the
affairs of the Bank in a manner inconsistent with the terms of such discharge or
suspension or any applicable regulatory order.

          Section 5.     Employee Benefit Plans and Programs.
                         -----------------------------------

          During the Employment Period, the Executive shall be treated as an
employee of the Company and the Bank and shall be entitled to participate in and
receive benefits under any and all qualified or non-qualified retirement,
pension, savings, profit-sharing or stock bonus plans, any and all group life,
health (including hospitalization, medical and major medical), dental, accident
and long-term disability insurance plans, and any other employee benefit and
compensation plans (including, but not limited to, any incentive compensation
plans or programs, stock option and appreciation rights plans and restricted
stock plans) as may from time to time be maintained by, or cover employees of,
the Company and the Bank, in accordance with the terms and conditions of such
employee benefit plans and programs and compensation plans and programs and
consistent with the Company's and the Bank's customary practices.

          Section 6.     Indemnification and Insurance.
                         -----------------------------

          (a)  During the Employment Period and for a period of six years
thereafter, the Company and the Bank shall cause the Executive to be covered by
and named as an insured under any policy or contract of insurance obtained by
them to insure their directors and officers against personal liability for acts
or omissions in connection with service as an officer or director of the Company
or the Bank or service in other capacities at their request.  The coverage
provided to the Executive pursuant to this section 6 shall be of the same scope
and on the same terms and conditions as the coverage (if any) provided to other
officers or directors of the Company and the Bank.

          (b)  To the maximum extent permitted under applicable law, during the
Employment Period and for a period of six years thereafter, the Company and the
Bank shall indemnify the Executive against and hold him harmless from any costs,
liabilities, losses and exposures to the fullest extent and on the most
favorable terms and conditions that similar indemnification is offered to any
director or officer of the Company and the Bank or any subsidiary or affiliate
thereof.

          Section 7.     Outside Activities.
                         ------------------

          The Executive may serve as a member of the boards of directors of such
business, community and charitable organizations as he may disclose to and as
may be approved by the Boards of Directors of the Company and the Bank (which
approval shall not be unreasonably withheld); provided, however, that such
service shall not materially interfere with the performance of his duties under
this Agreement.  The Executive may also engage in personal business and
investment activities which do not materially interfere with the performance of
his duties hereunder; provided, however, that such activities are not prohibited
under any code of conduct or investment or securities trading policy established
by the Company or the Bank and generally applicable to all similarly situated
executives.

                                      -3-
<PAGE>

          Section 8.     Working Facilities and Expenses.
                         -------------------------------

          The Executive's principal place of employment shall be at the Bank's
executive offices at the address first above written, or at such other location
as the Bank, the Company and the Executive may mutually agree upon.  The Bank
and the Company shall provide the Executive at his principal place of employment
with a private office, secretarial services and other support services and
facilities suitable to his positions with the Company and the Bank and necessary
or appropriate in connection with the performance of his assigned duties under
this Agreement.  The Company shall provide to the Executive for his exclusive
use an automobile owned or leased by the Company and appropriate to his
position, to be used in the performance of his duties hereunder, including
commuting to and from his personal residence.  The Bank or the Company shall
reimburse the Executive for his ordinary and necessary business expenses,
including, without limitation, all expenses associated with his business use of
the aforementioned automobile, fees for memberships in such clubs and
organizations as the Executive, the Company and the Bank shall mutually agree
are necessary and appropriate for business purposes, and his travel and
entertainment expenses incurred in connection with the performance of his duties
under this Agreement, in each case upon presentation to the payer of an itemized
account of such expenses in such form as the payer may reasonably require.

          Section 9.     Termination Due to Death.
                         ------------------------

          The Executive's employment with the Bank and the Company shall
terminate, automatically and without any further action on the part of any party
to this Agreement, on the date of the Executive's death.  In such event:

          (a)  The Bank and the Company shall pay to the Executive's
     estate his earned but unpaid compensation (including, without
     limitation, salary and all other items which constitute wages under
     applicable law) as of the date of his termination of employment. This
     payment shall be made at the time and in the manner prescribed by law
     applicable to the payment of wages but in no event later than thirty
     (30) days after the date of the Executive's termination of
     employment.

          (b)  The Company and the Bank shall provide the benefits, if
     any, due to the Executive's estate, surviving dependents or his
     designated beneficiaries under the employee benefit plans and
     programs and compensation plans and programs maintained for the
     benefit of the officers and employees of the Company and the Bank.
     The time and manner of payment or other delivery of these benefits
     and the recipients of such benefits shall be determined according to
     the terms and conditions of the applicable plans and programs.

The payments and benefits described in sections 9(a) and (b) shall be referred
to in this Agreement as the "Standard Termination Entitlements."

                                      -4-
<PAGE>

          Section 10.    Termination Due to Disability.
                         -----------------------------

          The Bank and the Company may terminate the Executive's employment upon
a determination, by separate votes of a majority of the members of the Boards of
Directors of the Company and the Bank, acting in reliance on the written advice
of a medical professional acceptable to them, that the Executive is suffering
from a physical or mental impairment which, at the date of the determination,
has prevented the Executive from performing his assigned duties on a
substantially full-time basis for a period of at least one hundred and eighty
(180) days during the period of one (1) year ending with the date of the
determination or is likely to result in death or prevent the Executive from
performing his assigned duties on a substantially full-time basis for a period
of at least one hundred and eighty (180) days during the period of one (1) year
beginning with the date of the determination.  In such event:

          (a)  The Bank and the Company shall pay and deliver to the
     Executive (or in the event of his death before payment, to his estate
     and surviving dependents and beneficiaries, as applicable) the Standard
     Termination Entitlements.

          (b)  In addition to the Standard Termination Entitlements, the
     Bank and the Company shall continue to pay the Executive his base
     salary, at the annual rate in effect for him immediately prior to the
     termination of his employment, during a period ending on the earliest
     of: (i) the expiration of one hundred and eighty (180) days after the
     date of termination of his employment; (ii) the date on which long-
     term disability insurance benefits are first payable to him under any
     long-term disability insurance plan covering employees of the Bank or
     the Company (the "LTD Eligibility Date"); (iii) the date of his
     death; and (iv) the expiration of the Remaining Unexpired Employment
     Period (the "Initial Continuation Period"). If the end of the Initial
     Continuation Period is neither the LTD Eligibility Date nor the date
     of his death, the Company and the Bank shall continue to pay the
     Executive his base salary, at an annual rate equal to sixty percent
     (60%) of the annual rate in effect for him immediately prior to the
     termination of his employment, during an additional period ending on
     the earliest of the LTD Eligibility Date, the date of his death and
     the expiration of the Remaining Unexpired Employment Period.

A termination of employment due to disability under this section 10 shall be
effected by joint notice of termination given to the Executive by the Company
and the Bank and shall take effect on the later of the effective date of
termination specified in such notice or the date on which the notice of
termination is deemed given to the Executive.

     Section 11.    Discharge with Cause.
                    --------------------

          (a)       The Bank and the Company may terminate the Executive's
     employment during the Employment Period, and such termination shall be
     deemed to have occurred with "Cause", only if:

          (i)       the Board of Directors of the Bank and the Board of
     Directors of the Company, by separate majority votes of their entire
     membership, determine that the

                                      -5-
<PAGE>

     Executive should be discharged because of personal dishonesty,
     incompetence, willful misconduct, breach of fiduciary duty involving
     personal profit, intentional failure to perform stated duties,
     willful violation of any law, rule or regulation (other than traffic
     violations or similar offenses) or final cease and desist order, or
     any material breach of this Agreement; and

          (ii)      at least forty-five (45) days prior to the votes
     contemplated by section 11(a)(i), the Bank and the Company have
     provided the Executive with notice of their intent to discharge the
     Executive for Cause, detailing with particularity the facts and
     circumstances which are alleged to constitute Cause (the "Notice of
     Intent to Discharge"); and

          (iii)     after the giving of the Notice of Intent to Discharge
     and before the taking of the votes contemplated by section 11(a)(i),
     the Executive (together with his legal counsel, if he so desires) is
     afforded a reasonable opportunity to make both written and oral
     presentations before the Boards of Directors of the Company and the
     Bank for the purpose of refuting the alleged grounds for Cause for
     his discharge; and

          (iv)      after the votes contemplated by section 11(a)(i), the
     Company and the Bank have furnished to the Executive a notice of
     termination which shall specify the effective date of his termination
     of employment (which shall in no event be earlier than the date on
     which such notice is deemed given) and include a copy of a resolution
     or resolutions adopted by the Board of Directors of the Bank and the
     Board of Directors of the Company, certified by their corporate
     secretaries and signed by each member of their respective Board of
     Directors voting in favor of adoption of the resolution(s),
     authorizing the termination of the Executive's employment with Cause
     and stating with particularity the facts and circumstances found to
     constitute Cause for his discharge (the "Final Discharge Notice").

For purposes of this section 11, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in  the best interests of the Company and the
Bank.  Any act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board and the Bank Board or based upon the
written advice of counsel for the Company or the Bank shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company and the Bank.

          (b)       If the Executive is discharged during the Employment Period
with Cause, the Company and the Bank shall pay and provide to him (or, in the
event of his death, to his estate, his surviving beneficiaries and his
dependents) the Standard Termination Entitlements only. Following the giving of
a Notice of Intent to Discharge, the Bank and the Company may temporarily
suspend the Executive's duties and authority and, in such event, may also
suspend the payment of salary and other cash compensation, but not the
Executive's participation in retirement, insurance and other employee benefit
plans. If the Executive is not discharged, or is discharged without Cause,
within forty-five (45) days after the giving of a Notice of Intent to Discharge,
payments of salary and cash compensation shall resume, and all payments withheld
during the period of suspension shall be

                                      -6-
<PAGE>

promptly restored. If the Executive is discharged with Cause not later than
forty-five (45) days after the giving of the Notice of Intent to Discharge, all
payments withheld during the period of suspension shall be deemed forfeited and
shall not be included in the Standard Termination Entitlements. If a Final
Discharge Notice is given later than forty-five (45) days, but sooner than
ninety (90) days, after the giving of the Notice of Intent to Discharge, all
payments made to the Executive during the period beginning with the giving of
the Notice of Intent to Discharge and ending with the Executive's discharge with
Cause shall be retained by the Executive and shall not be applied to offset the
Standard Termination Entitlements. If the Bank and the Company do not give a
Final Discharge Notice to the Executive within ninety (90) days after giving a
Notice of Intent to Discharge, the Notice of Intent to Discharge shall be deemed
withdrawn and any future action to discharge the Executive with Cause shall
require the giving of a new Notice of Intent to Discharge.

          Section 12.    Discharge without Cause.
                         -----------------------

          The Bank and the Company may discharge the Executive at any time
during the Employment Period and, unless such discharge constitutes a discharge
with Cause:

          (a)  The Bank and the Company shall pay and deliver to the
     Executive (or in the event of his death before payment, to his
     estate and surviving dependents and beneficiaries, as applicable)
     the Standard Termination Entitlements.

          (b)  In addition to the Standard Termination Entitlements:

               (i)    During the Remaining Unexpired Employment
          Period, the Bank and the Company shall provide for the
          Executive and his dependents continued group life, health
          (including hospitalization, medical and major medical),
          dental, accident and long-term disability insurance benefits
          on substantially the same terms and conditions (including
          any required premium-sharing arrangements, co-payments and
          deductibles) in effect for them immediately prior to the
          Executive's termination. The coverage provided under this
          section 12(b)(i) may, at the election of the Bank and the
          Company, be secondary to the coverage provided as part of
          the Standard Termination Entitlements and to any employer-
          paid coverage provided by a subsequent employer or through
          Medicare, with the result that benefits under the other
          coverages will offset the coverage required by this section
          12(b)(i).

               (ii)   The Bank and the Company shall make a lump sum
          payment to the Executive (or, in the event of his death
          before payment, to his estate), in an amount equal to the
          estimated present value of the salary that Executive would
          have earned if he had continued working for the Bank during
          the Remaining Unexpired Employment Period at the highest
          annual rate of salary achieved during that portion of the
          Employment Period which is prior to Executive's termination
          of employment with the Bank, where such present value is to
          be determined using a discount rate equal to the applicable
          short-term federal rate prescribed under section 1274(d) of
          the Internal Revenue Code of 1986 ("Code"), compounded using
          the compounding period

                                      -7-
<PAGE>

          corresponding to the Bank's regular payroll periods for its
          officers. Such lump sum shall be paid in lieu of all other
          payments of salary provided for under this Agreement in
          respect of the period following any such termination.

               (iii)  The Bank and the Company shall make a lump sum
          payment to the Executive (or, in the event of his death
          before payment, to his estate), in an amount equal to the
          payments that would have been made to Executive under any
          cash bonus or long-term or short-term cash incentive
          compensation plan maintained by, or covering employees of,
          the Bank if he had continued working for the Bank during the
          Remaining Unexpired Employment Period and had earned the
          maximum bonus or incentive award in each calendar year that
          ends during the Remaining Unexpired Employment Period, such
          payments to be equal to the product of:

                      (A)  the maximum percentage rate at which an
          award was ever available to Executive under such incentive
          compensation plan; multiplied by

                      (B)  the salary that would have been paid to
          Executive during each such calendar year at the highest
          annual rate of salary achieved during that portion of the
          Employment Period which is prior to Executive's termination
          of employment with the Bank.

     Such payment shall be made (without discounting for early
     payment) within thirty (30) days following the Executive's
     termination of employment.

The payments and benefits described in section 12(b) are referred to in this
Agreement as the "Additional Termination Entitlements".

          Section 13.    Resignation.
                         -----------

          (a)  The Executive may resign from his employment with the Bank and
the Company at any time. A resignation under this section 13 shall be effected
by notice of resignation given by the Executive to the Company and the Bank and
shall take effect on the later of the effective date of termination specified in
such notice or the date on which the notice of termination is deemed given by
the Executive. The Executive's resignation of any of the positions within the
Bank or the Company to which he has been assigned shall be deemed a resignation
from all such positions.

          (b)  The Executive's resignation shall be deemed to be for "Good
Reason" if the effective date of resignation occurs within ninety (90) days
after any of the following:

          (i)  the failure of the Company or the Bank (whether by act
     or omission of their respective Boards of Directors, or
     otherwise) to appoint or re-appoint or elect or re-elect the
     Executive to the position(s) with the Company and the Bank,
     specified in section 3 of this Agreement or to a more senior
     office;

                                      -8-
<PAGE>

          (ii)   if the Executive is or becomes a member of the Board
     of Directors of the Company or the Bank, the failure of their
     respective shareholders (whether in an election in which the
     Executive stands as a nominee or in an election where the
     Executive is not a nominee) to elect or re-elect the Executive to
     membership at the expiration of his term of membership, unless
     such failure is a result of the Executive's refusal to stand for
     election;

          (iii)  a material failure by the Company or the Bank,
     whether by amendment of their respective certificates of
     incorporation or organization, by-laws, action of their
     respective Boards of Directors or otherwise, to vest in the
     Executive the functions, duties, or responsibilities prescribed
     in section 3 of this Agreement; provided that the Executive shall
     have given notice of such failure to the Company and the Bank,
     and the Company or the Bank have not fully cured such failure
     within thirty (30) days after such notice is deemed given;

          (iv)   any reduction of the Executive's rate of base salary
     in effect from time to time, whether or not material, or any
     failure (other than due to reasonable administrative error that
     is cured promptly upon notice) to pay any portion of the
     Executive's compensation as and when due;

          (v)    any change in the terms and conditions of any
     compensation or benefit program in which the Executive
     participates which, either individually or together with other
     changes, has a material adverse effect on the aggregate value of
     his total compensation package; provided that the Executive shall
     have given notice of such material adverse effect to the Company
     and the Bank, and the Company or the Bank has not fully cured
     such failure within thirty (30) days after such notice is deemed
     given;

          (vi)   any material breach by the Company or the Bank of any
     material term, condition or covenant contained in this Agreement;
     provided that the Executive shall have given notice of such
     material adverse effect to the Company and the Bank, and the
     Company or the Bank have not fully cured such failure within
     thirty (30) days after such notice is deemed given; or

          (vii)  a change in the Executive's principal place of
     employment to a place that is not the principal executive office
     of the Bank, or a relocation of the Bank's principal executive
     office to a location that is both more than twenty-five (25)
     miles away from the Executive's principal residence and more than
     twenty-five (25) miles away from the location of the Bank's
     principal executive office on the date of this Agreement.

In all other cases, a resignation by the Executive shall be deemed to be without
Good Reason.

                                      -9-
<PAGE>

          (c)    In the event of the Executive's resignation before the
expiration of the Employment Period, the Company and the Bank shall pay and
deliver the Standard Termination Entitlements. In addition, if the Executive's
resignation is deemed to be a resignation with Good Reason, the Company and the
Bank shall also pay and deliver the Additional Termination Entitlements.

          Section 14.  Terms and Conditions of the Additional Termination
                       Entitlements.
                       --------------------------------------------------

          The Company, the Bank and the Executive hereby stipulate that the
damages which may be incurred by the Executive following any termination of
employment are not capable of accurate measurement as of the date first above
written and that the Additional Termination Entitlements constitute reasonable
damages under the circumstances and shall be payable without any requirement of
proof of actual damage and without regard to the Executive's efforts, if any, to
mitigate damages.  The Company, the Bank and the Executive further agree that
the Company and the Bank may condition the payment and delivery of the
Additional Termination Entitlements on the receipt of the Executive's
resignation from any and all positions which he holds as an officer, director or
committee member with respect to the Company, the Bank or any subsidiary or
affiliate of either of them.

          Section 15.  Termination Upon or Following a Change of Control.
                       -------------------------------------------------

          (a)    A "Change of Control" shall be deemed to have occurred upon the
happening of any of the following events:

          (i)    the consummation of a reorganization, merger or
     consolidation of the Company with one or more other persons,
     other than a transaction following which:

                 (A)  at least 51% of the equity ownership interests
          of the entity resulting from such transaction are
          beneficially owned (within the meaning of Rule 13d-3
          promulgated under the Securities Exchange Act of 1934, as
          amended ("Exchange Act")) in substantially the same relative
          proportions by persons who, immediately prior to such
          transaction, beneficially owned (within the meaning of Rule
          13d-3 promulgated under the Exchange Act) at least 51% of
          the outstanding equity ownership interests in the Company;
          and

                 (B)  at least 51% of the securities entitled to vote
          generally in the election of directors of the entity
          resulting from such transaction are beneficially owned
          (within the meaning of Rule 13d-3 promulgated under the
          Exchange Act) in substantially the same relative proportions
          by persons who, immediately prior to such transaction,
          beneficially owned (within the meaning of Rule 13d-3
          promulgated under the Exchange Act) at least 51% of the
          securities entitled to vote generally in the election of
          directors of the Company;

                                      -10-
<PAGE>

          (ii)   the acquisition of all or substantially all of the
     assets of the Company or beneficial ownership (within the meaning
     of Rule 13d-3 promulgated under the Exchange Act) of 25% or more
     of the outstanding securities of the Company entitled to vote
     generally in the election of directors by any person or by any
     persons acting in concert;

          (iii)  a complete liquidation or dissolution of the Company;

          (iv)   the occurrence of any event if, immediately following
     such event, at least 50% of the members of the Board of Directors
     of the Company do not belong to any of the following groups:

                 (A)   individuals who were members of the Board of
          Directors of the Company on the date of this Agreement; or

                 (B)   individuals who first became members of the
          Board of Directors of the Company after the date of this
          Agreement either:

                       (1)  upon election to serve as a member of the
                 Board of Directors of the Company by affirmative vote
                 of three-quarters of the members of such board, or of
                 a nominating committee thereof, in office at the time
                 of such first election; or

                       (2)  upon election by the shareholders of the
                 Board of Directors of the Company to serve as a
                 member of such board, but only if nominated for
                 election by affirmative vote of three-quarters of the
                 members of the Board of Directors of the Company, or
                 of a nominating committee thereof, in office at the
                 time of such first nomination;

          provided, however, that such individual's election or
          nomination did not result from an actual or threatened
          election contest (within the meaning of Rule 14a-11 of
          Regulation 14A promulgated under the Exchange Act) or other
          actual or threatened solicitation of proxies or consents
          (within the meaning of Rule 14a-11 of Regulation 14A
          promulgated under the Exchange Act) other than by or on
          behalf of the Board of Directors of the Company; or

          (v)    any event which would be described in section
     15(a)(i), (ii), (iii) or (iv) if the term "Bank" were substituted
     for the term "Company" therein.

In no event, however, shall a Change of Control be deemed to have occurred as a
result of (i) any acquisition of securities or assets of the Company, the Bank,
or a subsidiary of either of them, by the Company, the Bank, or any subsidiary
of either of them, or by any employee benefit plan maintained by any of them or
(ii) the conversion of First Charter, MHC to a stock form company and the
issuance of additional shares of the Company in connection therewith.  For
purposes of this section 15(a), the

                                      -11-
<PAGE>

term "person" shall have the meaning assigned to it under sections 13(d)(3) or
14(d)(2) of the Exchange Act.

          (b)    For purposes of this Agreement, a "Pending Change of Control"
shall mean: (i)  the signing of a definitive agreement for a transaction which,
if consummated, would result in a Change of Control; (ii) the commencement of a
tender offer which, if successful, would result in a Change of Control; or (iii)
the circulation of a proxy statement seeking proxies in opposition to management
in an election contest which, if successful, would result in a Change of
Control.

          (c)    Notwithstanding anything in this Agreement to the contrary, if
the Executive's employment with the Bank and the Company terminates due to death
or disability within one (1) year after the occurrence of a Pending Change of
Control and if a Change of Control occurs within two (2) years after such
termination of employment, he (or in the event of his death, his estate) shall
be entitled to receive the Standard Termination Entitlements and the Additional
Termination Entitlements that would have been payable if a Change of Control had
occurred on the date of his termination of employment and he had resigned with
Good Reason immediately thereafter; provided, that payment shall be deferred
without interest until, and shall be payable immediately upon, the actual
occurrence of a Change of Control.

          (d)    Notwithstanding anything in this Agreement to the contrary: (i)
in the event of the Executive's resignation within sixty (60) days after the
occurrence of a Change of Control, he shall be entitled to receive the Standard
Termination Entitlements and Additional Termination Entitlements that would be
payable if his resignation were a resignation for Good Reason, without regard to
the actual circumstances of his resignation; and (ii) for a period of one (1)
year after the occurrence of a Change of Control, no discharge of the Executive
shall be deemed a discharge with Cause unless the votes contemplated by section
11(a) of this Agreement are supported by at least two-thirds of the members of
the Board of Directors of the Company and the Bank at the time the vote is taken
who were also members of the Board of Directors of the Company and the Bank
immediately prior to the Change of Control.

          (e)    Notwithstanding anything in this Agreement to the contrary, for
purposes of computing the Additional Termination Entitlements due upon a
termination of employment that occurs, or is deemed to have occurred, after a
Change of Control, the Remaining Unexpired Employment Period shall be deemed to
be three (3) full years.

          Section 16.    Covenant Not To Compete.
                         -----------------------

          The Executive hereby covenants and agrees that, in the event of his
termination of employment with the Company prior to the expiration of the
Employment Period, for a period of one year following the date of his
termination of employment with the Company or the Bank, he shall not, without
the written consent of the Company, become an officer, employee, consultant,
director or trustee of any savings bank, savings and loan association, savings
and loan holding company, bank or bank holding company, any other entity engaged
in the business of accepting deposits or making loans or any direct or indirect
subsidiary or affiliate of any such entity, that entails working within the
State of Georgia or any city or county in any other state in which the Company
or the Bank maintains

                                      -12-
<PAGE>

an office; provided, however, that this section 16 shall not apply if the
Executive is entitled to the Additional Termination Entitlements.

          Section 17.    Confidentiality.
                         ---------------

          Unless he obtains the prior written consent of the Company, the
Executive shall keep confidential and shall refrain from using for the benefit
of himself, or any person or entity other than the Company or any entity which
is a subsidiary of the Company or of which the Company is a subsidiary, any
material document or information obtained from the Company, or from its parent
or subsidiaries, in the course of his employment with any of them concerning
their properties, operations or business (unless such document or information is
readily ascertainable from public or published information or trade sources or
has otherwise been made available to the public through no fault of his own)
until the same ceases to be material (or becomes so ascertainable or available);
provided, however, that nothing in this section 17 shall prevent the Executive,
with or without the Company's consent, from participating in or disclosing
documents or information in connection with any judicial or administrative
investigation, inquiry or proceeding to the extent that such participation or
disclosure is required under applicable law.

          Section 18.    Solicitation.
                         ------------

          The Executive hereby covenants and agrees that, for a period of one
year following his termination of employment with the Company or the Bank, he
shall not, without the written consent of the Company and the Bank, either
directly or indirectly:

          (a)    solicit, offer employment to, or take any other
     action intended, or that a reasonable person acting in like
     circumstances would expect, to have the effect of causing any
     officer or employee of the Company, the Bank or any of their
     respective subsidiaries or affiliates to terminate his or her
     employment and accept employment or become affiliated with, or
     provide services for compensation in any capacity whatsoever to,
     any savings bank, savings and loan association, bank, bank
     holding company, savings and loan holding company, or other
     institution engaged in the business of accepting deposits, making
     loans or doing business within the counties specified in section
     16;

          (b)    provide any information, advice or recommendation
     with respect to any such officer or employee of any savings bank,
     savings and loan association, bank, bank holding company, savings
     and loan holding company, or other institution engaged in the
     business of accepting deposits, making loans or doing business
     within the counties specified in section 16; that is intended, or
     that a reasonable person acting in like circumstances would
     expect, to have the effect of causing any officer or employee of
     the Company, the Bank, or any of their respective subsidiaries or
     affiliates to terminate his employment and accept employment or
     become affiliated with, or provide services for compensation in
     any capacity whatsoever to, any savings bank, savings and loan
     association, bank, bank holding company, savings and loan holding
     company, or other institution engaged in the business of
     accepting deposits, making loans or doing business within the
     counties specified in section 16;

                                      -13-
<PAGE>

          (c)    solicit, provide any information, advice or
     recommendation or take any other action intended, or that a
     reasonable person acting in like circumstances would expect, to
     have the effect of causing any customer of the Company to
     terminate an existing business or commercial relationship with
     the Company.

          Section 19.    No Effect on Employee Benefit Plans or Programs.
                         -----------------------------------------------

          The termination of the Executive's employment during the term of this
Agreement or thereafter, whether by the Company, by the Bank or by the
Executive, shall have no effect on the rights and obligations of the parties
hereto under the Company's or the Bank's qualified or non-qualified retirement,
pension, savings, thrift, profit-sharing or stock bonus plans, group life,
health (including hospitalization, medical and major medical), dental, accident
and long term disability insurance plans or such other employee benefit plans
or programs, or compensation plans or programs, as may be maintained by, or
cover employees of, the Company or the Bank from time to time; provided,
however, that nothing in this Agreement shall be deemed to duplicate any
compensation or benefits provided under any agreement, plan or program covering
the Executive to which the Company is a party and any duplicative amount payable
under any such agreement, plan or program shall be applied as an offset to
reduce the amounts otherwise payable hereunder.

          Section 20.    Successors and Assigns.
                         ----------------------

          This Agreement will inure to the benefit of and be binding upon the
Executive, his legal representatives and testate or intestate distributees, and
the Company and the Bank and their respective successors and assigns, including
any successor by merger or consolidation or a statutory receiver or any other
person or firm or corporation to which all or substantially all of the assets
and business of the Company may be sold or otherwise transferred.  Failure of
the Company to obtain from any successor its express written assumption of the
Company's obligations hereunder at least sixty (60) days in advance of the
scheduled effective date of any such succession shall be deemed a material
breach of this Agreement.

          Section 21.    Notices.
                         -------

          Any communication required or permitted to be given under this
Agreement, including any notice, direction, designation, consent, instruction,
objection or waiver, shall be in writing and shall be deemed to have been given
at such time as it is delivered personally, or five (5) days after mailing if
mailed, postage prepaid, by registered or certified mail, return receipt
requested, addressed to such party at the address listed below or at such other
address as one such party may by written notice specify to the other party:

          If to the Executive:

               Robert L. Johnson
               3345 Barnes Mill Road
               Hamilton, GA 31833

                                      -14-
<PAGE>

          If to the Company or the Bank:

               Charter Financial Corp.
               600 Third Avenue
               West Point, GA 31833

               Attention: Chairman, Personnel & Compensation Committee
                          of the Board of Directors

          Section 22.    Waiver.
                         ------

          Failure to insist upon strict compliance with any of the terms,
covenants or conditions hereof shall not be deemed a waiver of such term,
covenant, or condition.  A waiver of any provision of this Agreement must be
made in writing, designated as a waiver, and signed by the party against whom
its enforcement is sought.  Any waiver or relinquishment of any right or power
hereunder at any one or more times shall not be deemed a waiver or
relinquishment of such right or power at any other time or times.

          Section 23.    Counterparts.
                         ------------

          This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, and all of which shall constitute one and the
same Agreement.

          Section 24.    Governing Law.
                         -------------

          Except to the extent preempted by federal law, this Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Georgia applicable to contracts entered into and to be performed entirely
within the State of Georgia.

          Section 25.    Headings and Construction.
                         -------------------------

          The headings of sections in this Agreement are for convenience of
reference only and are not intended to qualify the meaning of any section.  Any
reference to a section number shall refer to a section of this Agreement, unless
otherwise stated.

          Section 26.    Entire Agreement; Modifications.
                         -------------------------------

          This instrument contains the entire agreement of the parties relating
to the subject matter hereof, and supersedes in its entirety any and all prior
agreements, understandings or representations relating to the subject matter
hereof.  No modifications of this Agreement shall be valid unless made in
writing and signed by the parties hereto.

                                      -15-
<PAGE>

          Section 27.    Non-duplication.
                         ---------------

          In the event that the Executive shall perform services for the Bank or
any other direct or indirect subsidiary or affiliate of the Company or the Bank,
any compensation or benefits provided to the Executive by such other employer
shall be applied to offset the obligations of the Company hereunder, it being
intended that this Agreement set forth the aggregate compensation and benefits
payable to the Executive for all services to the Company, the Bank and all of
their respective direct or indirect subsidiaries and affiliates.

          Section 28.    Relative Obligations of the Bank and the Company.
                         ------------------------------------------------

          The Company shall, with respect to the Executive's services hereunder
and the compensation therefor and with respect to any termination of the
Executive's employment, have all of the obligations imposed on the Bank under
this Agreement to the same extent as though the name of the Company were
substituted for the name of the Bank herein and the Executive shall, with
respect to the services hereunder and the compensation therefor and with respect
to any termination of the Executive's employment, have all of the rights,
privileges and duties relative to the Company as though the name of the Company
were substituted for the name of the Bank herein.  If the Executive performs
services for both the Bank and the Company, any entitlement of the Executive to
severance compensation and other termination benefits under this Agreement shall
be determined on the basis of the aggregate compensation payable to the
Executive by the Bank and the Company, and liability therefor shall be
apportioned between the Bank and the Company in the same manner as compensation
paid to the Executive for services to each of them; provided, however, that the
Company shall be jointly and severally liable with the Bank for all obligations
of the Bank under this Agreement; and provided, further, that in no event shall
the Bank bear any liability for actions of, or obligations undertaken by, the
Company under this Agreement.  It is the intent and purpose of this section 28
that the Executive have the same legal and economic rights that he would have if
all of his services were rendered to and all of his compensation were paid by
the Company.  This section 28 shall be construed and enforced to give effect to
such intent and purpose.

          Section 29.    Indemnification for Attorneys' Fees.
                         ------------------------------------

          The Bank and the Company shall indemnify, hold harmless and defend
Executive against reasonable costs, including legal fees, incurred by him in
connection with or arising out of any action, suit or proceeding in which he may
be involved, as a result of his efforts, in good faith, to defend or enforce the
terms of this Agreement; provided, however, that Executive shall have
substantially prevailed on the merits pursuant to a judgment, decree or order of
a court of competent jurisdiction or of an arbitrator in an arbitration
proceeding.  The determination whether the Executive shall have substantially
prevailed on the merits and is therefore entitled to such indemnification, shall
be made by the court or arbitrator, as applicable.  In the event of a settlement
pursuant to a settlement agreement, any indemnification payment under this
section 29 shall be made only after a determination by the members of the Board
(other than the Executive and any other member of the Board to which the
Executive is related by blood or marriage) that the Executive has acted in good
faith and that such indemnification payment is in the best interests of the Bank
and the Company.

                                      -16-
<PAGE>

          Section 30.    Required Regulatory Provisions.
                         ------------------------------

          The following provisions are included for the purposes of complying
with various laws, rules and regulations applicable to the Bank:

          (a)   Notwithstanding anything herein contained to the contrary, in no
event shall the aggregate amount of compensation payable to the Executive under
section 12(b) hereof exceed the three times the Executive's average annual
compensation (within the meaning of OTS Regulatory Bulletin 27a or any successor
thereto) for the last five consecutive calendar years to end prior to his
termination of employment with the Bank (or for his entire period of employment
with the Bank if less than five calendar years).  The compensation payable to
the Executive hereunder shall be further reduced (but not below zero) if such
reduction would avoid the assessment of excise taxes on excess parachute
payments (within the meaning of section 280G of the Code).

          (b)   Notwithstanding anything herein contained to the contrary, any
payments to the Executive by the Bank, whether pursuant to this Agreement or
otherwise, are subject to and conditioned upon their compliance with section
18(k) of the Federal Deposit Insurance Act ("FDI Act"), 12 U.S.C. (S)1828(k),
and any regulations promulgated thereunder.

          (c)   Notwithstanding anything herein contained to the contrary, if
the Executive is suspended from office and/or temporarily prohibited from
participating in the conduct of the affairs of the Bank pursuant to a notice
served under section 8(e)(3) or 8(g)(1) of the FDI Act, 12 U.S.C. (S)1818(e)(3)
or 1818(g)(1), the Bank's obligations under this Agreement shall be suspended as
of the date of service of such notice, unless stayed by appropriate proceedings.
If the charges in such notice are dismissed, the Bank, in its discretion, may
(i) pay to the Executive all or part of the compensation withheld while the
Bank's obligations hereunder were suspended and (ii) reinstate, in whole or in
part, any of the obligations which were suspended.

          (d)   Notwithstanding anything herein contained to the contrary, if
the Executive is removed and/or permanently prohibited from participating in the
conduct of the Bank's affairs by an order issued under section 8(e)(4) or
8(g)(1) of the FDI Act, 12 U.S.C. (S)1818(e)(4) or (g)(1), all prospective
obligations of the Bank under this Agreement shall terminate as of the effective
date of the order, but vested rights and obligations of the Bank and the
Executive shall not be affected.

          (e)   Notwithstanding anything herein contained to the contrary, if
the Bank is in default (within the meaning of section 3(x)(1) of the FDI Act, 12
U.S.C. (S)1813(x)(1), all prospective obligations of the Bank under this
Agreement shall terminate as of the date of default, but vested rights and
obligations of the Bank and the Executive shall not be affected.

          (f)   Notwithstanding anything herein contained to the contrary, all
prospective obligations of the Bank hereunder shall be terminated, except to the
extent that a continuation of this Agreement is necessary for the continued
operation of the Bank:  (i) by the Director of the OTS or his designee or the
Federal Deposit Insurance Corporation ("FDIC"), at the time the FDIC enters into
an agreement to provide assistance to or on behalf of the Bank under the
authority contained in section 13(c) of the FDI Act, 12 U.S.C. (S)1823(c); (ii)
by the Director of the OTS or his designee at the time such Director or designee
approves a supervisory merger to resolve problems related to the

                                      -17-
<PAGE>

operation of the Bank or when the Bank is determined by such Director to be in
an unsafe or unsound condition. The vested rights and obligations of the parties
shall not be affected.

If and to the extent that any of the foregoing provisions shall cease to be
required or by applicable law, rule or regulation, the same shall become
inoperative as though eliminated by formal amendment of this Agreement.

          Section 31.    Effective Date.
                         --------------

          This Agreement shall become effective (the "Effective Date") upon the
later of the following two dates: (a) the effective date of the Bank's
conversion from a federally chartered mutual savings bank to a stock form
savings bank pursuant to the Reorganization or (b) the date the OTS advises the
Bank in writing that it either approves or has no objection to the terms and
conditions of this Agreement.  The Bank, the Company and the Executive each
hereby acknowledge and agree that the terms of this Agreement shall have no
force or effect prior to such Effective Date.

          In Witness Whereof, the Bank and the Company have caused this
Agreement to be executed and the Executive has hereunto set his hand, all as of
the day and year first above written.

                                          __________________________________
                                          Robert L. Johnson

                                          CharterBank

Attest:

By____________________________            By________________________________
  Name:                                     Name:
  Title:                                    Title:

[Seal]

                                          Charter Financial Corp.

Attest:

By____________________________            By________________________________
  Name:                                     Name:
  Title:                                    Title:

[Seal]

                                      -18-

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