Document:

<PAGE>

                                                                     EXHIBIT 4.3
                    [FORM OF STOCK CERTIFICATE - FRONT SIDE]

NUMBER                                                                   SHARES
                            CHARTER FINANCIAL CORP.
                              WEST POINT, GEORGIA

COMMON STOCK                                                 CUSIP______________
                                             See reverse for certain definitions

This certifies that __________________is the record holder of ________________
 FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, $0.01 PAR VALUE PER
                      SHARE, OF CHARTER FINANCIAL CORP.,

a corporation incorporated under the laws of the United States (the
"Corporation") . The shares evidenced by this Certificate are transferable only
on the stock-transfer books of the Corporation by the holder of record hereof,
in person or by attorney or legal representative, upon surrender of this
Certificate properly endorsed. The stock evidenced hereby is not an account of
an insurable type and is not insured by the Federal Deposit Insurance
Corporation or any other government agency. This Certificate is not valid unless
countersigned and registered by the Transfer Agent and Registrar.

     IN WITNESS HEREOF, the Corporation has caused this Certificate to be
executed by the facsimile signatures of its duly authorized officers and has
caused its facsimile seal to be affixed hereto.

Dated:

---------------------------                -------------------------------------
Secretary                                  President and Chief Executive Officer

                                     (SEAL)
                                           Countersigned and Registered:
                                           REGISTRAR AND TRANSFER COMPANY
                                           By:                    Transfer Agent

                                                                   and Registrar
<PAGE>

                    (FORM OF STOCK CERTIFICATE - BACK SIDE)

     The shares represented by this certificate are issued subject to all the
provisions of the Charter and Bylaws of CHARTER FINANCIAL CORP. (the
"Corporation"), as from time to time amended (copies of which are on file at the
principal office of the Corporation), to all of which the holder by acceptance
hereof assents.  The following description constitutes a summary of certain
provisions of, and is qualified in its entirety by reference to, the Charter.

     The Charter of the Corporation contains certain provisions, applicable for
a period of five years from the date of CharterBank's reorganization into a
mutual holding company, that restrict persons, other than First Charter, MHC,
from directly or indirectly acquiring or holding, or attempting to acquire or
hold, the beneficial ownership of in excess of 10% of the outstanding shares of
capital stock of the Corporation entitled to vote generally in the election of
directors ("Voting Stock"). The Charter contains a provision pursuant to which
the shares beneficially held in excess of 10% the Voting Stock of the
Corporation are considered "excess shares" and shall not be counted as shares
entitled to vote and shall not be voted by any person or counted as voting
shares in connection with any matters submitted to the stockholders for a vote.
These restrictions are not applicable to underwriters in connection with a
public offering of the common stock, certain reorganization transactions
described in the Charter or to acquisitions of Voting Stock by the Corporation,
any majority-owned subsidiary of the Corporation, or any tax-qualified employee
stock benefit plan which is exempt from the approval requirements under
574.3(c)(1)(vii) of the Office of Thrift Supervision's regulations.  First
Charter, MHC the federally chartered mutual holding company of the Corporation
("Mutual Holding Company") will own in excess of 50% of the Common Stock of the
Corporation so long as the Mutual Holding Company remains in mutual form.

     The Corporation is authorized to issue more than one class of stock,
including a class of Preferred Stock which may be issued in one or more series.
The Corporation will furnish to any stockholder, upon written request and
without charge, within five days after receipt of such request, a full statement
of the designations, preferences, limitations or relative rights of the shares
of each class authorized to be issued and, as to shares of Preferred Stock, the
variations in the relative rights and preferences between the shares of each
series so far as the same have been fixed and determined and the authority of
the Board of Directors to fix and determine the relative rights and preferences
of subsequent series.

     The following abbreviations when used in the inscription on the face of
this certificate shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>                                       <C>
TEN COM - as tenants in common            UNIF GIFT MIN ACT - ............................ Custodian...........................
TEN ENT - as tenants by the entireties                                                   (Cust)                          (Minor)
JT TEN - as joint tenants with right of survivorship and                      under Uniform Gifts to Minors
     not as tenants in common                                         Act.....................................
                                                                                                             (State)
                              Additional abbreviations may also be used though not in the above list.

     For value received,__________________________________________________________________________________________________________
hereby sell, assign and transfer unto ______________________________________________________________________ shares of Common
Stock evidenced by this Certificate, and do hereby irrevocably constitute and appoint ____________________________________________
as Attorney, to transfer the said shares on the books of the herein named Corporation, with full power of substitution.
Date: ____________________________________________________________________________________________________________________________
                                                       Signature

                                       Signature       ___________________________________________________________________________

                                                       NOTICE: The signature to this assignment must correspond with
                                                       the name as written upon the face of the Certificate, in every
                                                       Particular, without alteration or enlargement, or any change
                                                       whatsoever.

</TABLE><PAGE>

                                                                    Exhibit 10.1

                         Employee Stock Ownership Plan

                                      of

                            Charter Financial Corp.

                Effective as of the Date of the Reorganization
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                          Page
                                   Definitions
<S>                                                                       <C>
Section 1.1       Account..............................................      1
Section 1.2       Affiliated Employer..................................      1
Section 1.3       Allocation Compensation..............................      1
Section 1.4       Bank.................................................      2
Section 1.5       Board................................................      2
Section 1.6       Beneficiary..........................................      2
Section 1.7       Change in Control....................................      2
Section 1.8       Code.................................................      2
Section 1.9       Committee............................................      2
Section 1.10      Company..............................................      2
Section 1.11      Designated Beneficiary...............................      2
Section 1.12      Disability...........................................      3
Section 1.13      Discretionary Contribution...........................      3
Section 1.14      Domestic Relations Order.............................      3
Section 1.15      Eligibility Computation Period ......................      3
Section 1.16      Effective Date.......................................      3
Section 1.17      Eligible Employee....................................      3
Section 1.18      Eligible Participant.................................      3
Section 1.19      Employee.............................................      4
Section 1.20      Employment Commencement..............................      4
Section 1.21      ERISA................................................      4
Section 1.22      Exchange Act.........................................      4
Section 1.23      Fair Market Value....................................      4
Section 1.24      Financed Share.......................................      4
Section 1.25      Five Percent Owner...................................      5
Section 1.26      Forfeitures..........................................      5
Section 1.27      Former Participant...................................      5
Section 1.28      General Investment Account...........................      5
Section 1.29      Highly Compensated Employee..........................      5
Section 1.30      Hour of Service......................................      5
Section 1.31      Investment Account...................................      6
Section 1.32      Investment Fund......................................      6
Section 1.33      Loan Repayment Account...............................      6
Section 1.34      Loan Repayment Contribution..........................      6
Section 1.35      Maternity or Paternity Leave.........................      6
Section 1.36      Military Service.....................................      6
Section 1.37      Named Fiduciary......................................      6
Section 1.38      Officer..............................................      6
Section 1.39      One-Year Break in Service............................      7
Section 1.40      Participant..........................................      7
Section 1.41      Participating Employer...............................      7
Section 1.42      Plan.................................................      7
Section 1.43      Plan Administrator...................................      7
</TABLE>

                                      (i)
<PAGE>

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                        <C>
Section 1.44      Plan Year...............................................    7
Section 1.45      Qualified Domestic Relations Order......................    7
Section 1.46      Qualified Military Service..............................    7
Section 1.47      Qualified Participant...................................    7
Section 1.48      Retirement..............................................    7
Section 1.49      Retroactive Contribution................................    7
Section 1.50      Share...................................................    8
Section 1.51      Share Acquisition Loan..................................    8
Section 1.52      Share Investment Account................................    8
Section 1.53      Tender Offer............................................    8
Section 1.54      Total Compensation......................................    8
Section 1.55      Trust...................................................    8
Section 1.56      Trust Agreement.........................................    8
Section 1.57      Trust Fund..............................................    8
Section 1.58      Trustee.................................................    8
Section 1.59      Valuation Date..........................................    8
Section 1.60      Year of Eligibility Service.............................    8
Section 1.61      Year of Vesting Service.................................    9

                                      Article II

                                    Participation

Section 2.1       Eligibility for Participation...........................    9
Section 2.2       Commencement of Participation...........................    9
Section 2.3       Termination of Participation............................   10

                                     Article III

                                  Special Provisions

Section 3.1       Military Service.......................................    10
Section 3.2       Maternity or Paternity Leave...........................    10
Section 3.3       Adjustments to Years of Eligibility Service............    11
Section 3.4       Leave of Absence.......................................    11
Section 3.5       Family and Medical Leave...............................    11
Section 3.6       Service with Uniformed Forces..........................    12
</TABLE>

                                     (ii)
<PAGE>

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                        <C>

                                   Article IV

                  Contributions By Participants Not Permitted

Section 4.1   Contributions by Participants Not Permitted.................   12

                                   Article V

                         Contributions by the Employer

Section 5.1   In General..................................................   12
Section 5.2   Loan Repayment Contributions................................   12
Section 5.3   Discretionary Contributions.................................   13
Section 5.4   Retroactive Contributions...................................   13
Section 5.5   Time and Manner of Payment..................................   14

                                   Article VI

                             Share Acquisition Loans

Section 6.1   In General..................................................   14
Section 6.2   Collateral; Liability for Repayment.........................   15
Section 6.3   Loan Repayment Account......................................   15
Section 6.4   Release of Financed Shares..................................   16
Section 6.5   Restrictions on Financed Shares.............................   17

                                   Article VII

                           Allocation of Contributions

Section 7.1   Allocation Among Eligible Participants......................   17
Section 7.2   Allocation of Released Shares or Other Property.............   17
Section 7.3   Allocation of Discretionary Contributions...................   17
</TABLE>

                                     (iii)
<PAGE>

                                                                            Page
                                                                            ----

                                 Article VIII

                          Limitations on Allocations

<TABLE>
<CAPTION>
<S>          <C>                                                            <C>
Section 8.1  Optional Limitations on Allocations............................  18
Section 8.2  General Limitations on Contributions...........................  18

                                  Article IX

                                    Vesting

Section 9.1  Vesting........................................................  20
Section 9.2  Vesting on Death, Disability, Retirement or Change in Control..  20
Section 9.3  Forfeitures on Termination of Employment.......................  20
Section 9.4  Amounts Credited Upon Re-Employment............................  21
Section 9.5  Allocation of Forfeitures......................................  21

                                   ARTICLE X

                                The Trust Fund

Section 10.1 The Trust Fund.................................................  21
Section 10.2 Investments....................................................  22
Section 10.3 Distributions for Diversification of Investments...............  22
Section 10.4 Use of Commingled Trust Funds..................................  23
Section 10.5 Management and Control of Assets...............................  23

                                  Article XI

                   Valuation of Interests in the Trust Fund

Section 11.1 Establishment of Investment Accounts...........................  24
Section 11.2 Share Investment Accounts......................................  24
Section 11.3 General Investment Accounts....................................  24
Section 11.4 Valuation of Investment Accounts...............................  24
Section 11.5 Annual Statements..............................................  25
</TABLE>

                                     (iv)
<PAGE>

<TABLE>
<CAPTION>
                                                                                                    Page
                                                                                                    ----

                                                  Article XII

                                                    Shares

<S>            <C>                                                                                  <C>
Section 12.1   Specific Allocation of Shares.....................................................    25
Section 12.2   Dividends.........................................................................    25
Section 12.3   Voting Rights.....................................................................    26
Section 12.4   Tender Offers.....................................................................    27

                                                  Article XIII

                                              Payment of Benefits

Section 13.1   In General........................................................................    30
Section 13.2   Designation of Beneficiaries......................................................    30
Section 13.3   Distributions to Participants.....................................................    31
Section 13.4   Manner of Payment.................................................................    31
Section 13.5   Minimum Required Distributions....................................................    32
Section 13.6   Direct Rollover of Eligible Rollover Distributions................................    33
Section 13.7   Valuation of Shares Upon Distribution.............................................    34
Section 13.8   Put Options.......................................................................    34
Section 13.9   Right of First Refusal............................................................    35

                                                   Article XIV

                                                 Change in Control

Section 14.1   Definition of Change in Control; Pending Change in Control........................    36
Section 14.2   Vesting on Change of Control......................................................    38
Section 14.3   Repayment of Share Acquisition Loan...............................................    38
Section 14.4   Plan Termination After Change in Control..........................................    38
Section 14.5   Amendment of Section XIV..........................................................    38

                                                   Article XV

                                                 Administration

Section 15.1   Named Fiduciaries.................................................................    38
Section 15.2   Plan Administrator................................................................    39
Section 15.3   Committee Responsibilities........................................................    40
Section 15.4   Claims Procedure..................................................................    41
Section 15.5   Claims Review Procedure...........................................................    42
Section 15.6   Allocation of Fiduciary Responsibilities and Employment of Advisors...............    42
Section 15.7   Other Administrative Provisions...................................................    43
</TABLE>

                                      (v)
<PAGE>

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
                                           Article XVI

                          Amendment, Termination and Tax Qualification
<S>               <C>                                                                                 <C>
Section 16.1      Amendment and Termination by Charter Financial Corp..............................     43
Section 16.2      Amendment or Termination Other Than by Charter Financial Corp....................     44
Section 16.3      Conformity to Internal Revenue Code..............................................     44
Section 16.4      Contingent Nature of Contributions...............................................     44

                                          Article XVII

                             Special Rules for Top Heavy Plan Years

Section 17.1      In General.......................................................................     45
Section 17.2      Definition of Top Heavy Plan.....................................................     45
Section 17.3      Determination Date...............................................................     46
Section 17.4      Cumulative Accrued Benefits......................................................     46
Section 17.5      Key Employees....................................................................     47
Section 17.6      Required Aggregation Group.......................................................     48
Section 17.7      Permissible Aggregation Group....................................................     48
Section 17.8      Special Requirements During Top Heavy Plan Years.................................     48

                                          Article XVIII

                                    Miscellaneous Provisions

Section 18.1      Governing Law....................................................................     49
Section 18.2      No Right to Continued Employment.................................................     49
Section 18.3      Construction of Language.........................................................     49
Section 18.4      Headings.........................................................................     49
Section 18.5      Merger with Other Plans..........................................................     49
Section 18.6      Non-alienation of Benefits.......................................................     50
Section 18.7      Procedures Involving Domestic Relations Orders...................................     50
Section 18.8      Leased Employees.................................................................     51
Section 18.9      Status as an Employee Stock Ownership Plan.......................................     52
</TABLE>

                                     (vi)
<PAGE>

                         Employee Stock Ownership Plan

                                      of

                            Charter Financial Corp.

                                   Article I

                                  Definitions

          The following definitions shall apply for the purposes of the Plan,
unless a different meaning is clearly indicated by the context:

          Section 1.1    Account means an account established for each
Participant to which is allocated such Participant's share, if any, of all
Financed Shares and other property that are released from the Loan Repayment
Account in accordance with section 6.4, together with his share, if any, of any
Discretionary Contributions that may be made by a Participating Employer.

          Section 1.2    Affiliated Employer means the Company; any corporation
which is a member of a controlled group of corporations (as defined in section
414(b) of the Code) that includes the Company; any trade or business (whether or
not incorporated) that is under common control (as defined in section 414(c) of
the Code) with the Company; any organization (whether or not incorporated) that
is a member of an affiliated service group (as defined in section 414(m) of the
Code) that includes the Company; any leasing organization (as defined in section
414(n) of the Code) to the extent that any of its employees are required
pursuant to section 414(n) of the Code to be treated as employees of the
Company; and any other entity that is required to be aggregated with the Company
pursuant to regulations under section 414(o) of the Code.

          Section 1.3    Allocation Compensation during any period means the
compensation taken into account in determining the allocation of benefits and
contributions among Participants and consists of the aggregate compensation
received by an Employee from the Employer or any Affiliated Employer with
respect to such period that constitute wages within the meaning of section 3401
of the Code including compensation arising from the vesting of restricted stock
award plus the amount by which such Employee's compensation with respect to such
period has been reduced pursuant to a compensation reduction agreement under the
terms of any of the following plans which may be maintained by the Employer:

          (a) a qualified cash or deferred arrangement described in section
401(k) of the Code;

          (b) a salary reduction simplified employee pension plan described in
section 408(k) of the Code;

          (c) a tax deferred annuity plan described in section 403(b) of the
Code; or

          (d) a cafeteria plan described in section 125 of the Code.
<PAGE>

In no event, however, shall an Employee's Allocation Compensation for any
calendar year include any compensation in excess of $170,000, or any such other
amount as may be prescribed in accordance with regulations prescribed under
section 401(a)(17) of the Code.  If there are less than twelve (12) months in
the Plan Year, the $170,000 limitation (as adjusted) shall be prorated by
multiplying such limitation by a fraction, the numerator of which is the number
of months in the Plan Year and the denominator of which is twelve (12).

          Section 1.4   Bank means CharterBank and any successor thereto.

          Section 1.5   Board means the Board of Directors of Charter Financial
Corp.

          Section 1.6   Beneficiary means the person or persons designated by a
Participant or Former Participant or other person entitled to a benefit under
the Plan, or otherwise determined to be entitled to a benefit under the Plan.
If more than one person is designated, each shall have an equal share unless the
person making the designation directed otherwise.  The word "person" includes an
individual, a trust, an estate or any other person that is permitted to be named
as a Beneficiary.

          Section 1.7   Change in Control means an event described in section
14.1.

          Section 1.8   Code means the Internal Revenue Code of 1986 (including
the corresponding provisions of any succeeding law).

          Section 1.9   Committee means the Compensation Committee described in
section 15.3.

          Section 1.10  Company means Charter Financial Corp., a Georgia
corporation, and any successor thereto.

          Section 1.11  Designated Beneficiary means a natural person designated
by a Participant or Former Participant as a Beneficiary and shall not include
any Beneficiary designated by a person other than a Participant or Former
Participant or any Beneficiary other than a natural person. If a natural person
is the beneficiary of a trust which a Participant or Former Participant has
named as his Beneficiary, such natural person shall be treated as a Designated
Beneficiary if: (a) the trust is a valid trust under applicable state law (or
would be a valid trust except for the fact that it does not have a corpus); (b)
the trust is irrevocable or will, by its terms, become irrevocable upon the
death of the Participant or Former Participant; (c) the beneficiaries of the
trust who are beneficiaries with respect to the trust's interest as a
Beneficiary are identifiable from the terms of the trust instrument; and (d) the
following information is furnished to the Committee:

          (i)  by the Participant or Former Participant, if any distributions
     are required to be made pursuant to section 13.5 prior to the death of the
     Participant or Former Participant, either: (A) a copy of the trust
     instrument, together with a written undertaking by the Participant or
     Former Participant to furnish to the Committee a copy of any subsequent
     amendment within a reasonable time after such amendment is made; or (B)(I)
     a list of all of the beneficiaries of the trust (including contingent and
     remainderman beneficiaries with a description of the conditions on their
     entitlement); (II) a certification of the Participant or Former Participant
     to the effect that, to the best of his knowledge, such list is correct and
     complete and that the

                                      -2-
<PAGE>

     conditions of section 1.11(a), (b) and (c) are satisfied; (III) a written
     undertaking to provide a new certification to the extent that an amendment
     changes any information previously certified; and (IV) a written
     undertaking to furnish a copy of the trust instrument to the Committee on
     demand; and

          (ii) by the trustee of the trust within nine months after the death of
     the Participant or Former Participant, if any distributions are required to
     be made pursuant to section 13.5 after the death of the Participant or
     Former Participant, either: (A) a copy of the actual trust instrument for
     the trust; or (B)(I) a final list of all of the beneficiaries of the trust
     (including contingent and remainderman beneficiaries with a description of
     the conditions on their entitlement) as of the date of death; (II) a
     certification of the trustee to the effect that, to the best of his
     knowledge, such list is correct and complete and that the conditions of
     section 1.11(a), (b) and (c) are satisfied; and (III) a written undertaking
     to furnish a copy of the trust instrument to the Committee on demand.

          Section 1.12    Disability means a condition of total incapacity,
mental or physical, for further performance of duty with all Participating
Employers, which the Committee shall have determined, on the basis of competent
medical evidence, is likely to be permanent.

          Section 1.13    Discretionary Contribution means Shares or amounts of
money contributed to the Plan by the Participating Employers in accordance with
section 5.3.

          Section 1.14    Domestic Relations Order means a judgment, decree or
order (including the approval of a property settlement) that is made pursuant to
a state domestic relations or community property law and relates to the
provision of child support, alimony payments, or marital property rights to a
spouse, child or other dependent of a Participant or Former Participant.

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

          Section 1.16    Effective Date means the date on which the Bank
converts from a mutual bank to a stock bank (the "Reorganization").

          Section 1.17    Eligible Employee means an Employee who is eligible
for membership in the Plan in accordance with Article II.

          Section 1.18    Eligible Participant means, for any Plan Year, an
Employee who is a Participant during all or any part of such Plan Year has
completed a Year of Eligibility Service for such Plan Year and either remains a
Participant on the last day of such Plan Year or terminated participation during
such Plan Year on account of termination of employment, death, Disability or
Retirement; provided, however, that no Employee shall be an Eligible Participant
for the Plan Year that includes the effective date of the transaction pursuant
to which the Bank becomes a wholly owned subsidiary of Charter Financial Corp.
if he terminates employment for any reason with all Participating Employers
prior to such effective date.

                                      -3-
<PAGE>

          Section 1.19    Employee means any person, including an officer, who
is employed by any Affiliated Employer.

          Section 1.20    Employment Commencement Date means the date on which a
person first performs an Hour of Service, except that if an Employee separates
from service with the Employer, incurs a One-Year Break in Service and
subsequently returns to service with the Employer, his Employment Commencement
Date shall be the date on which he first performs an Hour of Service following
the One-Year Break in Service.

          Section 1.21    ERISA means the Employee Retirement Income Security
Act of 1974, as amended from time to time (including the corresponding
provisions of any succeeding law).

          Section 1.22    Exchange Act means the Securities Exchange Act of
1934, as amended from time to time (including the corresponding provisions of
any succeeding law).

           Section 1.23   Fair Market Value on any date means:

          (a)  with respect to a Share:

               (i)    the final quoted sale price on the date in question (or,
          if there is no reported sale on such date, on the last preceding date
          on which any reported sale occurred) of a Share as reported in the
          principal consolidated reporting system with respect to securities
          listed or admitted to trading on the principal United States
          securities exchange on which like Shares are listed or admitted to
          trading; or

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

               (iii)  if sections 1.23(a)(i) and (ii) are not applicable, the
          fair market value of a Share as determined by an appraiser independent
          of the Employer and experienced and expert in the field of corporate
          appraisal.

          (b) with respect to property other than Shares, the fair market value
     determined in the manner selected by the Trustee.

          Section 1.24    Financed Share means: (a) a Share that has been
purchased with the proceeds of a Share Acquisition Loan, that has been allocated
to the Loan Repayment Account in accordance with section 6.3 and that has not
been released in accordance with section 6.4; or (b) a Share that constitutes a
dividend paid with respect to a Share described in section 1.24(a), that has
been allocated to the Loan Repayment Account in accordance with section 6.3 and
that has not been released in accordance with section 6.4.

                                      -4-
<PAGE>

          Section 1.25    Five Percent Owner means, for any Plan Year, a person
who, during such Plan Year, owned (or was considered as owning for purposes of
section 318 of the Code): (a) more than 5% of the value of all classes of
outstanding stock of any Affiliated Employer; or (b) stock possessing more than
5% of the combined voting power of all classes of outstanding stock of any
Affiliated Employer.

          Section 1.26    Forfeitures means the amounts forfeited by
Participants and Former Participants on termination of employment prior to full
vesting, pursuant to section 9.3, less amounts credited because of re-
employment, pursuant to section 9.4.

          Section 1.27    Former Participant means a Participant whose
participation in the Plan has terminated pursuant to section 2.3.

          Section 1.28    General Investment Account means an Investment Account
established and maintained in accordance with Article XI.

          Section 1.29    Highly Compensated Employee means, for any Plan Year,
an Employee who:

               (i)  was a Five Percent Owner at any time during such Plan Year
          or any prior Plan Year; or

               (ii) received Total Compensation during the immediately preceding
          Plan Year (A) in excess of $85,000 (or such other amount as may be
          prescribed by the Secretary of the Treasury pursuant to section
          401(a)(17) of the Code); and (B) if elected by the Plan Administrator
          in such form and manner as the Secretary of the Treasury may
          prescribe, in excess of the Total Compensation received for such
          preceding Plan Year by at least 80% of the Employees.

The determination of who is a Highly Compensated Employee will be made in
accordance with section 414(q) of the Code and the regulations thereunder.

          Section 1.3     Hour of Service means each hour for which a person is
paid, or entitled to payment, for the performance of duties for any Affiliated
Employer, plus:

          (a) each hour for which such person is paid, or entitled to payments
     by an Affiliated Employer on account of a period during which no duties are
     performed due to vacation, holiday, illness, incapacity (including
     disability), layoff, jury duty, military duty, or leave of absence.  Hours
     under this section 1.30(a) shall be calculated and credited pursuant to
     section 2530.200b-2 of the Department of Labor's regulations (or any
     successor regulation), which are incorporated herein by reference; and

          (b) each hour for which back pay, irrespective of mitigation of
     damages, is either awarded or agreed to by any Affiliated Employer;
     provided, however, that such hours have not previously been credited under
     other provisions of this section 1.30; and provided, further, that not more
     than 501 Hours of Service shall be credited under section 1.30(a) to such
     person on account of a single continuous period during

                                      -5-
<PAGE>

     which such person performs no duties for an Affiliated Employer whether or
     not such period occurs in a single Plan Year. Hours under this section
     1.30(b) shall be credited to the person for the Eligibility or Vesting
     Computation Period or Eligibility or Vesting Computation Periods to which
     the award or agreement pertains, rather than the Eligibility or Vesting
     Computation Period in which the award, agreement or payment is made.

Anything in this section 1.30 to the contrary notwithstanding, no Hours of
Service shall be credited for a payment made or due under a plan maintained
solely for the purpose of complying with applicable workmen's compensation or
disability insurance laws, or a payment which solely reimburses any person for
medical or medically-related expenses incurred by such person.

          Section 1.31    Investment Account means either a General Investment
Account or a Share Investment Account.

          Section 1.32    Investment Fund means any one of the three or more
funds as may be established from time to time by the Committee which, together
with any and all Shares and other investments held under the Plan, constitute
the Trust Fund.

          Section 1.33    Loan Repayment Account means an account established
and maintained in accordance with section 6.3.

          Section 1.34    Loan Repayment Contribution means amounts of money
contributed to the Plan by the Participating Employers in accordance with
section 5.2.

          Section 1.35    Maternity or Paternity Leave means a person's absence
from work for all Affiliated Employers:  (a) by reason of the pregnancy of such
person; (b) by reason of the birth of a child of such person; (c) by reason of
the placement of a child with the person in connection with the adoption of such
child by such person; or (d) for purposes of caring for a child of such person
immediately following the birth of the child or the placement of the child with
such person.

          Section 1.36    Military Service means service in the armed forces of
the United States, including but not limited to Qualified Military Service.  It
may also include, if and to the extent that the Board so provides and if all
Participants and Former Participants in like circumstances are similarly
treated, special service for the government of the United States and other
public service.

          Section 1.37    Named Fiduciary means any person, committee,
corporation or organization described in section 15.1.

          Section 1.38    Officer means an Employee who is an administrative
executive in regular and continued service with any Affiliated Employer;
provided, however, that at no time shall more than the lesser of (a) 50
Employees or (b) the greater of (i) 3 Employees or (ii) 10% of all Employees be
treated as Officers.  The determination of whether an Employee is to be
considered an Officer shall be made in accordance with section 416(i) of the
Code.

                                      -6-
<PAGE>

          Section 1.39    One-Year Break in Service means an Eligibility or
Vesting Computation Period during which an Employee fails to complete more than
500 Hours of Service.

          Section 1.40    Participant means any person who has satisfied the
eligibility requirements set forth in section 2.1, who has become a Participant
in accordance with section 2.2, and whose membership has not terminated under
section 2.3.

          Section 1.41    Participating Employer means the Bank, and any
successor thereto and any other Affiliated Employer which, with the prior
written approval of the Board of Directors of Charter Financial Corp. and
subject to such terms and conditions as may be imposed by the Board of Directors
of Charter Financial Corp., shall adopt this Plan.

          Section 1.42    Plan means the Employee Stock Ownership Plan of
Charter Financial Corp., as amended from time to time.

          Section 1.43    Plan Administrator means the Committee or any person,
committee, corporation or organization designated in section 15.2, or appointed
pursuant to section 15.2, to perform the responsibilities of that office.

          Section 1.44    Plan Year means the period commencing on the date of
the Reorganization and ending on December 31, 2001 and each fiscal year ending
on each December 31/st/ thereafter.

          Section 1.45    Qualified Domestic Relations Order means a Domestic
Relations Order that:  (a) clearly specifies (i) the name and last known mailing
address of the Participant or Former Participant and of each person given rights
under such Domestic Relations Order, (ii) the amount or percentages of the
Participant's or Former Participant's benefits under this Plan to be paid to
each person covered by such Domestic Relations Order, (iii) the number of
payments or the period to which such Domestic Relations Order applies, and (iv)
the name of this Plan; and (b) does not require the payment of a benefit in a
form or amount that is (i) not otherwise provided for under the Plan, or (ii)
inconsistent with a previous Qualified Domestic Relations Order.

          Section 1.46    Qualified Military Service means with respect to any
person on any date, any service in the uniformed services of the United States
(as defined in chapter 43 of Title 38 of the United States Code) completed prior
to such date, but only if, on such date, such person is entitled to re-
employment rights with respect to an Affiliated Employer on account of such
service.

          Section 1.47    Qualified Participant means a Participant who has
attained age 55 and who has been a Participant of the Plan for at least 10
years.

          Section 1.48    Retirement means: (a) any termination of membership in
the Plan at or after attainment of age 65; and (b) any retirement under an
applicable qualified defined benefit plan of the Employer as in effect from time
to time with entitlement to a normal or early (but not vested, whether immediate
or deferred) retirement allowance.

          Section 1.49    Retroactive Contribution means a contribution made on
a retroactive basis in respect of a period of Qualified Military Service in
accordance with section 5.4.

                                      -7-
<PAGE>

          Section 1.50    Share means a share of any class of stock issued by
any Affiliated Employer; provided, however, that such share is a "qualifying
employer security" within the meaning of section 409(l) of the Code and section
407(d)(5) of ERISA.

          Section 1.51    Share Acquisition Loan means a loan obtained by the
Trustee in accordance with Article VI.

          Section 1.52    Share Investment Account means an Investment Account
established and maintained in accordance with Article XI.

          Section 1.53    Tender Offer means a tender offer made to holders of
any one or more classes of Shares generally, or any other offer made to holders
of any one or more classes of Shares generally to purchase, exchange, redeem or
otherwise transfer Shares, whether for cash or other consideration whether or
not such offer constitutes a "tender offer" or an "exchange offer" for purposes
of the Exchange Act.

          Section 1.54    Total Compensation during any period means an
Employee's aggregate total compensation paid by the Employer and any Affiliated
Employer with respect to such period that constitutes wages within the meaning
of section 3401 of the Code, plus any amounts by which the Employee's
compensation paid by the Employer or any Affiliated Employer has been reduced
pursuant to a compensation reduction agreement under the terms of any qualified
cash or deferred arrangement described in section 401(k) of the Code, any salary
reduction simplified employee pension plan described in section 408(k) of the
Code, any tax deferred annuity plan described in section 403(b) of the Code, or
any cafeteria plan described in section 125 of the Code.  In no event, however,
shall an Employee's Total Compensation for any calendar year include any
compensation in excess of $170,000 (or such other amount as may be permitted
under section 401(a)(17) of the Code).

          Section 1.55    Trust means the legal relationship created by the
Trust Agreement pursuant to which the Trustee holds the Trust Fund in trust.

          Section 1.56    Trust Agreement means the agreement between the Bank
and the Trustee therein named or its successors pursuant to which the Trust Fund
shall be held in trust.

          Section 1.57    Trust Fund means the corpus (consisting of
contributions paid over to the Trustee and investments thereof), and all
earnings, appreciation or additions thereof and thereto, held by the Trustee
under the Trust Agreement in accordance with the Plan, less any depreciation
thereof and any payments made therefrom pursuant to the Plan.

          Section 1.58    Trustee means the Trustee of the Trust Fund from time
to time in office.  The Trustee shall serve as Trustee until it is removed or
resigns from office and is replaced by a successor Trustee appointed in
accordance with the terms of the Trust Agreement.

          Section 1.59    Valuation Date means the last business day of each
Plan Year and such other dates as the Plan Administrator may prescribe.

          Section 1.60    Year of Eligibility Service means an Eligibility
Computation Period during which the Employee completed at least 1,000 Hours of
Service.

                                      -8-
<PAGE>

          Section 1.61    Year of Vesting Service means a Vesting Computation
Period during which the Employee completed at least 1,000 Hours of Service.

                                  Article II

                                 Participation

          Section 2.1   Eligibility for Participation.

          (a)    Only Eligible Employees may be or become Participants of the
Plan. An Employee shall be an Eligible Employee if he (i) is employed by one or
more Participating Employers; (ii) has attained age 20 1/2; (iii) has completed
at least three months of Service; and (iv) is not excluded under section 2.1(b).

          (b)    An Employee is not an Eligible Employee if he:

          (i)    does not receive Allocation Compensation from at least one
     Participating Employer;

          (ii)   is an Employee who has waived any claim to participation in the
     Plan;

          (iii)  is an Employee or in a unit of Employees covered by a
     collective bargaining agreement with the Employer where retirement
     benefits were the subject of good faith bargaining, unless such agreement
     expressly provides that Employees such as he be covered under the Plan;

          (iv)   is a "leased employee" as defined in section 18.8(a); or

          (v)    is classified as an "independent contractor" by the Employer,
     even if considered a common-law employee under applicable law.

          Section 2.2   Commencement of Participation.

          Every Employee who is an Eligible Employee on the effective date of
the transaction whereby the Bank becomes a wholly owned subsidiary of Charter
Financial Corp. shall automatically become a Participant as of the Effective
Date.  An Employee who becomes an Eligible Employee after the Effective Date
shall automatically become a Participant on the January 1 or July 1 coincident
with or next following the date on which he becomes an Eligible Employee.

                                      -9-
<PAGE>

          Section 2.3   Termination of Participation.

          Participation in the Plan shall cease, and a Participant shall become
a Former Participant, upon termination of employment with all Participating
Employers, death, Disability or Retirement, failure to return to work upon the
expiration of a leave of absence granted pursuant to section 3.4, becoming an
Employee who is excluded under section 2.1(b) or distribution of the entire
vested interest in his Account.

                                  ARTICLE III

                              Special Provisions
                              ------------------

          Section 3.1   Military Service.

          In the case of a termination of employment of any Employee to enter
directly into Military Service, the entire period of his absence shall be
treated, for purposes of vesting and eligibility for participation (but not,
except as required by law, for purposes of eligibility to share in allocations
of contributions in accordance with Article VII), as if he had worked for the
Employer during the period of his absence.  In the event of the re-employment of
such person by the Employer within a period of not more than six months:

          (a)  after he becomes entitled to release or discharge, if he has
entered into the armed forces; or

          (b)  after such service terminates, if he has entered into other
service defined as Military Service;

such period, also, shall be deemed to be Military Service.

          Section 3.2   Maternity or Paternity Leave.

          (a)  Subject to section 3.2(c), in the event of an Employee's absence
from work in the service of the Employer and all Affiliated Employers for a
period:

               (i)    that commences on or after October 1, 1985;

               (ii)   for which the person is not paid or entitled to payment by
the Employer or any Affiliated Employer; and

               (iii)  that constitutes Maternity or Paternity Leave;

then the rules of section 3.2(b) shall apply.

          (b)  In cases of absence described in section 3.2(a), solely for
purposes of determining whether a One-Year Break in Service has occurred, the
person shall be credited for the period of an absence described in section
3.2(a) with the number of Hours of Service equal to the lesser of:

                                      -10-
<PAGE>

               (i)  (A)  the number of Hours of Service that would have been
credited to the person if he had continued working for the Bank or an Affiliated
Employer during the period of such absence, or (B) if the number of Hours of
Service prescribed under section 3.2(b)(i)(A) cannot be determined, 8 Hours of
Service for each working day during the period of absence; or

               (ii) 501 Hours of Service.

     Such credit shall be given during the Computation Period during
     which such absence began, if necessary to prevent a One-Year
     Break in Service from occurring during such Computation Period,
     and in all other cases, such credit shall be given during the
     immediately following Computation Period.

          (c)  Notwithstanding anything in the Plan to the contrary, this
section 3.2 shall not apply unless the person furnishes to the Plan
Administrator such information as the Plan Administrator may reasonably require
in order to establish (i) that the person's absence is one described in section
3.2(a), and (ii) the number of working days during such absence.

          Section 3.3    Adjustments to Years of Eligibility Service.

          The Years of Eligibility Service of an Employee who returns to the
employment of the Employer or any Affiliated Employer following a separation
from service shall include his Years of Eligibility Service prior to such
separation from service, and such an Employee shall be readmitted to
participation immediately upon his return to service if he is then an Eligible
Employee.

          Section 3.4    Leave of Absence.

          In the event of temporary absence from work in the service of the
Employer and all Affiliated Employers for any period for which a Participant
shall have been granted a leave of absence by the Employer, the entire period of
his absence shall be treated for purposes of vesting and eligibility for
participation (but not for purposes of eligibility to share in the allocation of
contributions in accordance with Article VII), as if he had worked for the
Employer during the period of his absence.  Absence from work for a period
greater than, or failure to return to work upon the expiration of, the period of
leave of absence granted by the Employer shall terminate participation in the
Plan as of the date on which such period ended.  In granting leaves of absence
for purposes of the Plan, all Employees in like circumstances shall be similarly
treated.

          Section 3.5    Family and Medical Leave.

          In the event of absence for a period recognized a family and medical
leave under the federal Family and Medical Leave Act of 1992, the period of such
absence shall be recognized for purposes of vesting and eligibility to
participate to the full extent required by law.

          Section 3.6    Service with Uniformed Forces.

          Periods of service with the uniformed forces of the United States
shall be treated in the manner required pursuant to section 414(u) of the Code.

                                      -11-
<PAGE>

                                  Article IV

                  Contributions by Participants Not Permitted

          Section 4.1    Contributions by Participants Not Permitted.

          Participants shall not be required, nor shall they be permitted, to
make contributions to the Plan.

                                   Article V

                         Contributions by the Employer

          Section 5.1    In General.

          Subject to the limitations of Article VIII, for each Plan Year, the
Participating Employers shall contribute to the Plan the amount, if any,
determined by the Board of Directors of Charter Financial Corp., but in no event
less than the amount described in section 5.2(a).  The amount contributed for
any Plan Year shall be treated as a Loan Repayment Contribution, a Discretionary
Contribution, or a combination thereof, in accordance with the provisions of
this Article V.

          Section 5.2    Loan Repayment Contributions.

          For each Plan Year, a portion of the Participating Employers'
contributions, if any, to the Plan equal to the sum of:

          (a)    the minimum amount required to be added to the Loan
     Repayment Account in order to provide adequate funds for the
     payment of the principal and interest then required to be repaid
     under the terms of any outstanding Share Acquisition Loan
     obtained by the Trustee; plus

          (b)    the additional amount, if any, designated by the
     Committee to be applied to the prepayment of principal or
     interest under the terms of any outstanding Share Acquisition
     Loan obtained by the Trustee;

shall be treated as a Loan Repayment Contribution for such Plan Year.  A Loan
Repayment Contribution for a Plan Year shall be allocated to the Loan Repayment
Account and shall be applied by the Trustee, in the manner directed by the
Committee, to the payment of accrued interest and to the reduction of the
principal balance of any Share Acquisition Loan obtained by the Trustee that is
outstanding on the date on which the Loan Repayment Contribution is made.  To
the extent that a Loan Repayment Contribution for a Plan Year results in a
release of Financed Shares in accordance with section 6.4, such Shares shall be
allocated among the Accounts of Eligible Participants for such Plan Year in
accordance with section 7.2.

                                      -12-
<PAGE>

          Section 5.3    Discretionary Contributions.

          In the event that the amount of the Participating Employers'
contributions to the Plan for a Plan Year exceeds the amount of the Loan
Repayment Contributions for such Plan Year, such excess shall be treated as a
Discretionary Contribution and shall be allocated among the Accounts of the
Eligible Participants for such Plan Year in accordance with section 7.3.

          Section 5.4    Retroactive Contributions.

          A Participating Employer shall make a Retroactive Contribution in
respect of any individual previously employed by it who is re-employed by any
Affiliated Employer after December 12, 1994 following the completion of a period
of Qualified Military Service.  Such Retroactive Contribution shall be made in
the following manner for each Plan Year that includes any part of the period of
Qualified Military Service:

          (a)    An allocation percentage shall be computed by
     dividing (i) the sum of the Fair Market Value of all Financed
     Shares allocated to Eligible Participants for such Plan Year plus
     the dollar amount of all Discretionary Contributions made in cash
     for such Plan Year plus the Fair Market Value of all
     Discretionary Contributions made in Shares for such Plan Year,
     divided by (ii) the aggregate amount of Allocation Compensation
     used in the allocation for such Plan Year. Fair Market Value for
     such purposes shall be determined as of the last day of the Plan
     Year.

          (b)    A notional allocation shall be determined by
     multiplying (A) the percentage determined under section 5.4(a) by
     (B) the Allocation Compensation which the individual would have
     had for such Plan Year if he had remained in the service of his
     Participating Employer in the same capacity and earning
     Allocation Compensation and Total Compensation at the annual
     rates in effect immediately prior to the commencement of the
     Qualified Military Leave (or, if such rates are not reasonably
     certain, at an annual rate equal to the actual Allocation
     Compensation and Total Compensation, respectively, paid to him
     for the 12-month period immediately preceding the Qualified
     Military Service).

          (c)    An actual Retroactive Contribution for the Plan Year
     shall be determined by computing the excess of (A) the notional
     allocation determined under section 5.4(b) over (B) the sum of
     the dollar amount of any Discretionary Contribution in cash, the
     Fair Market Value of any Discretionary Contribution in Shares and
     the Fair Market Value of any Financed Shares actually allocated
     to such individual for such Plan Year.

          Section 5.5    Time and Manner of Payment.

          (a)    Payment of contributions made pursuant to this Article V shall
be made: (i) in cash, in the case of a Loan Repayment Contribution; and (ii) in
cash, in Shares, or in a combination of cash and Shares, in the case of an
Discretionary Contribution or a Retroactive Contribution.

                                      -13-
<PAGE>

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

                                  Article VI

                            Share Acquisition Loans

          Section 6.1    In General.

          The Committee may, with the prior approval of the Board of Directors
of Charter Financial Corp., direct the Trustee to obtain a Share Acquisition
Loan on behalf of the Plan, the proceeds of which shall be applied on the
earliest practicable date:

          (a)    to purchase Shares; or

          (b)    to make payments of principal or interest, or a
     combination of principal and interest, with respect to such Share
     Acquisition Loan; or

          (c)    to make payments of principal and interest, or a
     combination of principal and interest, with respect to a
     previously obtained Share Acquisition Loan that is then
     outstanding.

Any such Share Acquisition Loan shall be obtained on such terms and conditions
as the Committee may approve; provided, however, that such terms and conditions
shall provide for the payment of interest at no more than a reasonable rate and
shall permit such Share Acquisition Loan to satisfy the requirements of section
4975(d)(3) of the Code and section 408(b)(3) of ERISA.

          Section 6.2    Collateral; Liability for Repayment.

          (a)    The Committee may direct the Trustee to pledge, at the time a
Share Acquisition Loan is obtained, the following assets of the Plan as
collateral for such Share Acquisition Loan:

          (i)    any Shares purchased with the proceeds of such Share
     Acquisition Loan and any earnings attributable thereto;

          (ii)   any Financed Shares then pledged as collateral for a
     prior Share Acquisition Loan which is repaid with the proceeds of
     such Share Acquisition Loan and any earnings attributable
     thereto; and

                                      -14-
<PAGE>

          (iii)  pending the application thereof to purchase Shares or
     repay a prior Share Acquisition Loan, the proceeds of such Share
     Acquisition Loan and any earnings attributable thereto.

Except as specifically provided in this section 6.2(a), no assets of the Plan
shall be pledged as collateral for the repayment of any Share Acquisition Loan.

          (b)    No person entitled to payment under a Share Acquisition Loan
shall have any right to the assets of the Plan except for:

          (i)    Financed Shares that have been pledged as collateral
     for such Share Acquisition Loan pursuant to section 6.2(a);

          (ii)   Loan Repayment Contributions made pursuant to section
     5.2; and

          (iii)  earnings attributable to Financed Shares described in
     section 6.2(b)(i) and to Loan Repayment Contributions described
     in section 6.2(b)(ii).

Except in the event of a default or a refinancing pursuant to which an existing
Share Acquisition Loan is repaid or as provided in section 14.3, the aggregate
amount of all payments of principal and interest made by the Trustee with
respect to all Share Acquisition Loans obtained on behalf of the Plan shall at
no time exceed the aggregate amount of all Loan Repayment Contributions
theretofore made plus the aggregate amount of all earnings (other than dividends
paid in the form of Shares) attributable to Financed Shares and to such Loan
Repayment Contributions.

          (c)    Any Share Acquisition Loan shall be without recourse against
the Plan and Trust.

          Section 6.3    Loan Repayment Account.

          In the event that one or more Share Acquisition Loans shall be
obtained, a Loan Repayment Account shall be established under the Plan.  The
Loan Repayment Account shall be credited with all Shares acquired with the
proceeds of a Share Acquisition Loan, all Loan Repayment Contributions and all
earnings (including dividends paid in the form of Shares) or appreciation
attributable to such Shares and Loan Repayment Contributions.  The Loan
Repayment Account shall be charged with all payments of principal and interest
made by the Trustee with respect to any Share Acquisition Loan, all Shares
released in accordance with section 6.4 and all losses, depreciation or expenses
attributable to Shares or to other property credited thereto.  The Financed
Shares, as well as any earnings thereon, shall be allocated to such Loan
Repayment Account and shall be accounted for separately from all other amounts
or property contributed under the Plan.

          Section 6.4    Release of Financed Shares.

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

                                      -15-
<PAGE>

Shares released in any such Plan Year shall be equal to the amount determined
according to one of the following methods:

          (a)    by computing the product of: (i) the number of
     Financed Shares purchased with the proceeds of such Share
     Acquisition Loan and allocated to the Loan Repayment Account
     immediately before the release is effected; multiplied by (ii) a
     fraction, the numerator of which is the aggregate amount of the
     principal and interest payments (other than payments made upon
     the refinancing of a Share Acquisition Loan as contemplated by
     section 6.1(c)) made with respect to such Share Acquisition Loan
     during such Plan Year, and the denominator of which is the
     aggregate amount of all principal and interest remaining to be
     paid with respect to such Share Acquisition Loan as of the first
     day of such Plan Year; or

          (b)    by computing the product of: (i) the number of
     Financed Shares purchased with the proceeds of such Share
     Acquisition Loan and allocated to the Loan Repayment Account
     immediately before the release is effected; multiplied by (ii) a
     fraction, the numerator of which is the aggregate amount of the
     principal payments (other than payments made upon the refinancing
     of a Share Acquisition Loan as contemplated by section 6.1(c))
     made with respect to such Share Acquisition Loan during such Plan
     Year, and the denominator of which is the aggregate amount of all
     principal remaining to be paid with respect to such Share
     Acquisition Loan as of the first day of such Plan Year; provided,
     however, that the method described in this section 6.4(b) may be
     used only if the Share Acquisition Loan does not extend for a
     period in excess of 10 years after the date of origination and
     only to the extent that principal payments on such Share
     Acquisition Loan are made at least as rapidly as under a loan of
     like principal amount with a like interest rate and term
     requiring level amortization of principal and interest.

The method to be used shall be specified in the documents governing the Share
Acquisition Loan or, if not specified therein, prescribed by the Committee, in
its discretion.  In the event that property other than, or in addition to,
Financed Shares shall be held in the Loan Repayment Account and pledged as
collateral for a Share Acquisition Loan, then the property to be released
pursuant to this section 6.4 shall be property having a Fair Market Value
determined by applying the method to be used to the Fair Market Value of all
property pledged as collateral for such Share Acquisition Loan; provided,
however, that no property other than Financed Shares shall be released pursuant
to this section 6.4 unless all Financed Shares have previously been released.

          Section 6.5    Restrictions on Financed Shares.

          Except to the extent required under any applicable law, rule or
regulation, no Shares purchased with the proceeds of a Share Acquisition Loan
shall be subject to a put, call or other option, or to any buy-sell or similar
arrangement, while held by the Trustee or when distributed from the Plan.  The
provisions of this section 6.5 shall continue to apply in the event that this
Plan shall cease to be an employee stock ownership plan, within the meaning of
section 4975(e)(7) of the Code.

                                      -16-
<PAGE>

                             Article VII

                     Allocation of Contributions

          Section 7.1   Allocation Among Eligible Participants.

          Subject to the limitations of Article VIII, Discretionary
Contributions for a Plan Year made in accordance with section 5.3 and Financed
Shares and other property that are released from the Loan Repayment Account for
a Plan Year in accordance with section 6.4 shall be allocated among the Eligible
Participants for such Plan Year, in the manner provided in this Article VII.

          Section 7.2   Allocation of Released Shares or Other Property.

          Subject to the limitations of Article VIII, in the event that Financed
Shares or other property are released from the Loan Repayment Account for a Plan
Year in accordance with section 6.4, such released Shares or other property
shall be allocated among the Accounts of the Eligible Participants for the Plan
Year in the proportion that each such Eligible Participant's Allocation
Compensation for the portion of such Plan Year during which he was a Participant
bears to the aggregate of such Allocation Compensation of all Eligible
Participants for such Plan Year.

          Section 7.3   Allocation of Discretionary Contributions.

          Subject to the limitations of Article VIII, in the event that the
Participating Employers make Discretionary Contributions for a Plan Year, such
Discretionary Contributions shall be allocated among the Accounts of the
Eligible Participants for such Plan Year in the proportion that each such
Eligible Participant's Allocation Compensation for the portion of such Plan Year
during which he was a Participant bears to the aggregate of such Allocation
Compensation of all Eligible Participants for such Plan Year.

                            Article VIII

                     Limitations on Allocations

          Section 8.1   Optional Limitations on Allocations.

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

                                      -17-
<PAGE>

Employees, constitutes exactly one-third of the aggregate Allocation
Compensation taken into account for all Eligible Participants.

          Section 8.2   General Limitations on Contributions.

          (a)    No amount shall be allocated to a Participant's Account under
this Plan for any Limitation Year to the extent that such an allocation would
result in an Annual Addition of an amount greater than the lesser of (i) $35,000
(or such other amount as is permissible under section 415(c)(1)(A) of the Code),
or (ii) 25% of the Participant's Total Compensation for such Limitation Year.

          (b)    For purposes of this section 8.2, the following special
definitions shall apply:

          (i)    Annual Addition means the sum of the following
     amounts allocated on behalf of a Participant for a Limitation
     Year:

                 (A)     all contributions by the Employer (including
          contributions made under a salary reduction agreement
          pursuant to sections 401(k), 408(k) or 403(b) of the Code)
          under any qualified defined contribution plan (other than
          this Plan) maintained by the Employer, as well as the
          Participant's allocable share, if any, of any forfeitures
          under such plans; plus

                 (B)(I)  for Limitation Years that begin prior to
          January 1, 1987, the lesser of (1) one-half of all
          nondeductible voluntary contributions under any other
          qualified defined contribution plan (whether or not
          terminated) maintained by the Employer, or (2) the amount of
          the nondeductible voluntary contributions under qualified
          defined contribution plan (whether or not terminated)
          maintained by the Employer in excess of 6% of such
          Participant's Total Compensation; and (II) for Limitation
          Years that begin after December 31, 1986, the sum of all of
          the nondeductible voluntary contributions under any other
          qualified defined contribution plan (whether or not
          terminated) maintained by the Employer;

                 (C)     all Discretionary Contributions under this
          Plan; plus

                 (D)     except as hereinafter provided in this
          section 8.2(b)(i), a portion of the Employer's Loan
          Repayment Contributions to the Plan for such Limitation Year
          which bears the same proportion to the total amount of the
          Employer's Loan Repayment Contributions for the Limitation
          Year that the number of Shares (or the Fair Market Value of
          property other than Shares) allocated to the Participant's
          Account pursuant to section 7.2 or 8.1, whichever is
          applicable, bears to the aggregate number of Shares (or Fair
          Market Value of property other than Shares) so allocated to
          all Participants for such Limitation Year.

          Notwithstanding section 8.2(b)(i)(D), if, for any Limitation
          Year, the aggregate amount of Discretionary Contributions
          allocated to the Accounts of the individuals who are Highly
          Compensated Employees for such

                                      -18-
<PAGE>

          Limitation Year, when added to such Highly Compensated
          Employees' allocable share of any Loan Repayment
          Contributions for such Limitation Year, does not exceed one-
          third of the total of all Discretionary Contributions and
          Loan Repayment Contributions for such Limitation Year, then
          that portion, if any, of the Loan Repayment Contributions
          for such Limitation Year that is applied to the payment of
          interest on a Share Acquisition Loan shall not be included
          as an Annual Addition. In no event shall any Financed
          Shares, any dividends or other earnings thereon, any
          proceeds of the sale thereof or any portion of the value of
          the foregoing be included as an Annual Addition.

          (ii)   Employer means Charter Financial Corp., and all
     members of a controlled group of corporations, as defined in
     section 414(b) of the Code, as modified by section 415(h) of the
     Code, all commonly controlled trades or businesses, as defined in
     section 414(c) of the Code, as modified by section 415(h) of the
     Code, all affiliated service groups, as defined in section 414(m)
     of the Code, of which Charter Financial Corp. is a member, as
     well as any leasing organization, as defined in section 18.8,
     that employs any person who is considered an employee under
     section 18.8 and any other entity that is required to be
     aggregated with the Employer pursuant to regulations under
     section 414(o) of the Code.

          (iii)  Limitation Year means the Plan Year.

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

          (e)    Prior to determining an individual's actual Total Compensation
for a Limitation Year, the Participating Employer may determine the limitations
under this section 8.2 for an individual on the basis of a reasonable estimation
of the individual's Total Compensation for the Limitation Year that is uniformly
determined for all individuals who are similarly situated. As soon as it is
administratively feasible after the end of the Limitation Year, the limitations
of this section 8.2 shall be determined on the basis of the individual's actual
Total Compensation for the Limitation Year.

                                      -19-
<PAGE>

                                  Article IX

                                    Vesting

          Section 9.1   Vesting.

          Subject to the provisions of sections 9.2 and 14.1(a), the balance
credited to each Participant's Account shall become vested in accordance with
the following schedule:

               Years of Vesting                     Vested
                   Service                        Percentage

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

          Section 9.2   Vesting on Death, Disability, Retirement or Change in
                        Control.

          Any previously unvested portion of the remainder of the balance
credited to the Account of a Participant or of a person who is a Former
Participant solely because he is excluded from membership under section 2.1(b)
shall become fully vested immediately upon his attainment of age 65 while
employer by any Applicable Employer, or, if earlier, upon the termination of his
employment with all Affiliated Employers by reason of death, Disability,
Retirement or upon the occurrence of a Change in Control.

          Section 9.3   Forfeitures on Termination of Employment.

          Upon the termination of employment of a Participant or Former
Participant for any reason other than death, Disability or Retirement, that
portion of the balance credited to his Account which is not vested at the date
of such termination shall be forfeited as of the last Valuation Date for the
Plan Year in which such termination of employment occurs.  The proceeds of such
forfeitures, less amounts, if any, required to be credited because of re-
employment pursuant to section 9.4, shall be treated as Forfeitures and shall be
disposed of as provided in section 9.5.

                                      -20-
<PAGE>

          Section 9.4   Amounts Credited Upon Re-Employment.

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

          (i)  an amount equal to the Fair Market Value of the Shares forfeited,
     determined as of the date of forfeiture; and

          (ii) the amount credited to his General Investment Account that was
     forfeited, determined as of the date of forfeiture;

shall be credited back to his Account from the proceeds of Forfeitures which are
redeemed pursuant to section 9.3 during the Plan Year in which he is re-
employed, unless such proceeds are insufficient, in which case his Participating
Employer shall make an additional contribution in the amount of such deficiency;
provided, however, that if an Employee receives a distribution of all or any
portion of his vested Account on or before the last day of the second Plan Year
to end after his termination of employment, such credit back shall not be
required unless such Employee repays to the Plan the entire amount of the
distribution (without interest) on or before the fifth (5/th/) anniversary of
his re-employment or (if earlier) the occurrence following his re-employment of
a Break in Service.

          Section 9.5   Allocation of Forfeitures.

          Any Forfeitures that occur during a Plan Year shall be used to reduce
the contributions required of the Employer under the Plan in the next Plan Year
and shall be treated as Loan Repayment Contributions and Discretionary
Contributions in the proportions designated by the Committee in accordance with
Article V.

                                   Article X

                                 The Trust Fund

          Section 10.1  The Trust Fund.

          The Trust Fund shall be held and invested under the Trust Agreement
with the Trustee. The provisions of the Trust Agreement shall vest such powers
in the Trustee as to investment, control and disbursement of the Trust Fund,
and such other provisions not inconsistent with the Plan, including provision
for the appointment of one or more "investment managers" within the meaning of
section 3(38) of ERISA to manage and control (including acquiring and disposing
of) all or any of the assets of the Trust Fund, as the Board may from time to
time authorize. Except as required by ERISA, no bond or other security shall be
required of any Trustee at any time in office.

                                      -21-
<PAGE>

          Section 10.2  Investments.

          Except to the extent provided to the contrary in section 10.3, the
Trust Fund shall be invested in:

          (i)   Shares;

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

          (iii) such other investments as may be permitted under the Trust
     Agreement;

in such proportions as shall be determined by the Committee or, if so provided
under the Trust Agreement, as directed by one or more investment managers or by
the Trustee, in its discretion; provided, however, that the investments of the
Trust Fund shall consist primarily of Shares. Notwithstanding the immediately
preceding sentence, the Trustee may temporarily invest the Trust Fund in short-
term obligations of, or guaranteed by, the United States Government or an agency
thereof, or may retain uninvested, or sell investments to provide, amounts of
cash required for purposes of the Plan.

          Section 10.3  Distributions for Diversification of Investments.

          (a)   Notwithstanding section 10.2, each Qualified Participant may:

          (i)   during the first 90 days of each of the first five Plan Years to
     begin after the Plan Year in which he first becomes a Qualified
     Participant, elect that such percentage of the balance credited to his
     Account as he may specify, but in no event more than 25% of the balance
     credited to his Account, be either distributed to him pursuant to this
     section 10.3(a)(i) or transferred to the Charter Bank 401(k) Plan to the
     extent permitted by such plan, no later than 90 days after the last day
     that such election may be made; and

          (ii)  during the first 90 days of the sixth Plan Year to begin after
     the Plan Year in which he first becomes a Qualified Participant or of any
     Plan Year thereafter, elect that such percentage of the balance credited to
     his Account as he may specify, but in no event more than 50% of the balance
     credited to his Account, be either distributed to him pursuant to this
     section 10.3(a)(ii) or transferred to the Charter Bank 401(k) Plan to the
     extent permitted by such plan, no later than 90 days after the last day
     that such election may be made.

For purposes of an election under this section 10.3, the balance credited to a
Participant's Account shall be the balance credited to his Account determined as
of the last Valuation Date to occur in the Plan Year immediately preceding the
Plan Year in which such election is made and the 25% and 50% limitations shall
apply to such balance after the balance has been reduced by the amount of all
amounts distributed or transferred to the Charter Bank 401(k) Plan under this
section 10.3.

                                      -22-
<PAGE>

          (b)  An election made under section 10.3(a) shall be made in writing,
in the form and manner prescribed by the Plan Administrator, and shall be filed
with the Plan Administrator during the election period specified in section
10.3(a).  As soon as is practicable, and in no case later than 90 days following
the end of the election period during which such election is made, the Plan
Administrator shall take such actions as are necessary to cause the specified
percentage of the balance credited to the Account of the Qualified Participant
making the election to be distributed to such Qualified Participant.

          (c)  An election made under section 10.3(a) may be changed or revoked
at any time during the election period described in section 10.3(a) during which
it is initially made.  In no event, however, shall any election under this
section 10.3 result in more than 25% of the balance credited to the
Participant's Account being distributed to the Participant or transferred to the
Charter Bank 401(k), if such election is made during a Plan Year to which
section 10.3(a)(i) applies, or result in more than 50% of the balance
distributed to the Participant or transferred to the Charter Bank 401(k) Plan,
if such election is made during the Plan Year to which section 10.3(a)(ii)
applies or thereafter.

          Section 10.4  Use of Commingled Trust Funds.

          Subject to the provisions of the Trust Agreement, amounts held in the
Trust Fund may be invested in:

          (a) any commingled or group trust fund described in section 401(a) of
     the Code and exempt under section 501(a) of the Code; or

          (b) any common trust fund exempt under section 584 of the Code
     maintained exclusively for the collective investment of the assets of
     trusts that are exempt under section 501(a) of the Code; provided that the
     trustee of such commingled, group or common trust fund is a bank or trust
     company.

          Section 10.5  Management and Control of Assets.

          All assets of the Plan shall be held by the Trustee in trust for the
exclusive benefit of Participants, Former Participants and their Beneficiaries.
No part of the corpus or income of the Trust Fund shall be used for, or diverted
to, purposes other than for the exclusive benefit of Participants, Former
Participants and their Beneficiaries, and for defraying reasonable
administrative expenses of the Plan and Trust Fund. No person shall have any
interest in or right to any part of the earnings of the Trust Fund, or any
rights in, to or under the Trust Fund or any part of its assets, except to the
extent expressly provided in the Plan.

                                      -23-
<PAGE>

                                  Article XI

                   Valuation of Interests in the Trust Fund

          Section 11.1   Establishment of Investment Accounts.

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

          Section 11.2   Share Investment Accounts.

          The Share Investment Account established for a person in accordance
with section 11.1 shall be credited with:  (a) all Shares allocated to such
person's Account; (b) all Shares purchased with amounts of money or property
allocated to such person's Account; (c) all dividends paid in the form of Shares
with respect to Shares credited to his Account; and (d) all Shares purchased
with amounts credited to such person's General Investment Account.  Such Share
Investment Account shall be charged with all Shares that are sold or exchanged
to acquire other investments or to provide cash and with all Shares that are
distributed in kind.

          Section 11.3   General Investment Accounts.

          The General Investment Account that is established for a person in
accordance with section 11.1 shall be credited with:  (a) all amounts, other
than Shares, allocated to such person's Account; (b) all dividends paid in a
form other than Shares with respect to Shares credited to such person's Share
Investment Account; (c) the proceeds of any sale of Shares credited to such
person's Share Investment Account; and (d) any earnings attributable to amounts
credited to such person's General Investment Account.  Such General Investment
Account shall be charged with all amounts credited thereto that are applied to
the purchase of Shares, any losses or depreciation attributable to amounts
credited thereto, any expenses allocable thereto and any distributions of
amounts credited thereto.

          Section 11.4   Valuation of Investment Accounts.

          (a) The Plan Administrator shall determine, or cause to be determined,
the aggregate value of each person's Share Investment Account as of each
Valuation Date by multiplying the number of Shares credited to such Share
Investment Account on such Valuation Date by the Fair Market Value of a Share on
such Valuation Date.

          (b) As of each Valuation Date, the Accounts of each Participant shall
be separately adjusted to reflect their proportionate share of any appreciation
or depreciation in the fair market value of the Investment Funds, any income
earned by the Investment Funds and any expenses incurred by the Investment
Funds, as well as any contributions, withdrawals or distributions and investment
transfers not posted as of the last Valuation Date.

                                      -24-
<PAGE>

          Section 11.5   Annual Statements.

          There shall be furnished, by mail or otherwise, at least once in each
Plan Year to each person who would then be entitled to receive all or part of
the balance credited to any Account if the Plan were then terminated, a
statement of his interest in the Plan as of such date as shall be selected by
the Plan Administrator, which statement shall be deemed to have been accepted as
correct and be binding on such person unless the Plan Administrator receives
written notice to the contrary within 30 days after the statement is mailed or
furnished to such person.

                                  Article XII

                                    Shares

          Section 12.1   Specific Allocation of Shares.

          All Shares purchased under the Plan shall be specifically allocated to
the Share Investment Accounts of Participants, Former Participants and their
Beneficiaries in accordance with section 11.2, with the exception of Financed
Shares, which shall be allocated to the Loan Repayment Account.

          Section 12.2   Dividends.

          (a) Dividends paid with respect to Shares held under the Plan shall be
credited to the Loan Repayment Account, if paid with respect to Financed Shares.
Such dividends shall be: (i) applied to the payment of principal and accrued
interest with respect to any Share Acquisition Loan, if paid in cash; or (ii)
held in the Loan Repayment Account as Financed Shares for release in accordance
with section 6.4, if paid in the form of Shares.

          (b) Dividends paid with respect to Shares allocated to a person's
Share Investment Account shall be credited to such person's Share Investment
Account.  Cash dividends credited to a person's General Investment Account shall
be, at the direction of the Committee, either: (i) held in such General
Investment Account and invested in accordance with sections 10.2 and 11.3; (ii)
distributed immediately to such person; (iii) distributed to such person within
90 days of the close of the Plan Year in which such dividends were paid; or (iv)
used to make payments of principal or interest on a Share Acquisition Loan;
provided, however, that the Fair Market Value of Financed Shares released from
the Loan Repayment Account as a result of such payment equals or exceeds the
amount of the dividend.

                                      -25-
<PAGE>

          Section 12.3   Voting Rights.

          (a)    Each person shall direct the manner in which all voting rights
appurtenant to Shares allocated to his Share Investment Account will be
exercised, provided that such Shares were allocated to his Share Investment
Account as of the applicable record date. Such person shall, for such purpose,
be deemed a "named fiduciary" within the meaning of section 402(a)(2) of ERISA.
Such a direction shall be given by completing and filing with the inspector of
elections, the Trustee or such other person who shall be independent of the
Participating Employers as the Committee shall designate, at least 10 days prior
to the date of the meeting of holders of Shares at which such voting rights will
be exercised, a written direction in the form and manner prescribed by the
Committee. The inspector of elections, the Trustee or such other person
designated by the Committee shall tabulate the directions given on a strictly
confidential basis, and shall provide the Committee with only the final results
of the tabulation. The final results of the tabulation shall be followed by the
Committee in directing the Trustee as to the manner in which such voting rights
shall be exercised. The Plan Administrator shall make a reasonable effort to
furnish, or cause to be furnished, to each person for whom a Share Investment
Account is maintained all annual reports, proxy materials and other information
known by the Plan Administrator to have been furnished by the issuer of the
Shares, or by any solicitor of proxies, to the holders of Shares.

          (b)    To the extent that any person shall fail to give instructions
with respect to the exercise of voting rights appurtenant to Shares allocated to
his Share Investment Account:

          (i)    the Trustee shall, with respect to each matter to be voted
     upon: (A) cast a number of affirmative votes equal to the product of (I)
     the number of allocated Shares for which no written instructions have been
     given, multiplied by (II) a fraction, the numerator of which is the number
     of allocated Shares for which affirmative votes will be cast in accordance
     with written instructions given as provided in section 12.3(a) and the
     denominator of which is the aggregate number of affirmative and negative
     votes which will be cast in accordance with written instructions given as
     aforesaid, and (B) cast a number of negative votes equal to the excess (if
     any) of (I) the number of allocated Shares for which no written
     instructions have been given over (II) the number of affirmative votes
     being cast with respect to such allocated Shares pursuant to section
     12.3(b)(i)(A); or

          (ii)   if the Trustee shall determine that it may not, consistent with
     its fiduciary duties, vote the allocated Shares for which no written
     instructions have been given in the manner described in section 12.3(b)(i),
     it shall vote such Shares in such manner as it, in its discretion, may
     determine to be in the best interests of the persons to whose Share
     Investment Accounts such Shares have been allocated.

          (c)    (i)  The voting rights appurtenant to Financed Shares shall be
exercised as follows with respect to each matter as to which holders of Shares
may vote:

                      (A)  a number of votes equal to the product of (I) the
     total number of votes appurtenant to Financed Shares allocated to the Loan
     Repayment Account on the applicable record date; multiplied by (II) a
     fraction, the numerator of which is the total number of affirmative votes
     cast by Participants, Former Participants and the Beneficiaries of deceased
     Former Participants with respect to such matter pursuant to section 12.3(a)
     and the denominator of which is the total number of affirmative

                                      -26-
<PAGE>

     and negative votes cast by Participants, Former Participants and the
     Beneficiaries of deceased Former Participants, shall be cast in the
     affirmative; and

                    (B)  a number of votes equal to the excess of (I) the total
     number of votes appurtenant to Financed Shares allocated to the Loan
     Repayment Account on the applicable record date, over (II) the number of
     affirmative votes cast pursuant to section 12.3(c)(i)(A) shall be cast in
     the negative.

To the extent that the Financed Shares consist of more than one class of Shares,
this section 12.3(c)(i) shall be applied separately with respect to each class
of Shares.

          (ii) If voting rights are to be exercised with respect to Financed
     Shares as provided in section 12.3(c)(i)(A) and (B) at a time when there
     are no Shares allocated to the Share Investment Accounts of Participants,
     Former Participants and the Beneficiaries of de  ceased Former
     Participants, then the voting rights appurtenant to Financed Shares shall
     be exercised as follows with respect to each matter as to which holders of
     Shares may vote:

               (A)  Each person who is a Participant on the applicable record
          date will be granted a number of votes equal to the quotient, rounded
          to the nearest integral number, of (I) such Participant's Allocation
          Compensation for the Plan Year ending on or immediately prior to such
          record date (or for the portion of such Plan Year during which he was
          a Participant); divided by (II) $1,000.00; and

               (B)  a number of votes equal to the product of (I) the total
          number of Financed Shares allocated to the Loan Repayment Account on
          the applicable record date; multiplied by (II) a fraction, the
          numerator of which is the total number of votes that are cast in the
          affirmative with respect to such matter pursuant to section
          12.3(c)(ii)(A) and the denominator of which is the total number of
          votes that are cast either in the affirmative or in the negative with
          respect to such matter pursuant to section 12.3(c)(ii)(A), shall be
          cast in the affirmative; and

               (C)  a number of votes equal to the excess of (I) the total
          number of Financed Shares allocated to the Loan Repayment Account on
          the applicable record date, over (II) the number of affirmative votes
          cast with respect to such matter pursuant to section 12.3(c)(ii)(B),
          shall be cast in the negative.

To the extent that the Financed Shares consist of more than one class of Shares,
this section 12.3(c)(ii) shall be applied separately with respect to each class
of Shares.

          Section 12.4  Tender Offers.

          (a)  Each person shall direct whether Shares allocated to his Share
Investment Account will be delivered in response to any Tender Offer. Such
person shall, for such purpose, be deemed a "named fiduciary" within the meaning
of section 402(a)(2) of ERISA. Such a direction shall be given by completing and
filing with the Trustee or such other person who shall be independent of the
Participating Employers as the Committee shall designate, at least 10 days prior
to the latest date for exercising a right to deliver Shares pursuant to such
Tender Offer, a written direction in the form and manner prescribed by the
Committee. The Trustee or other person

                                      -27-
<PAGE>

designated by the Committee shall tabulate the directions given on a strictly
confidential basis, and shall provide the Committee with only the final results
of the tabulation. The final results of the tabulation shall be followed by the
Committee in directing the number of Shares to be delivered. The Plan
Administrator shall make a reasonable effort to furnish, or cause to be
furnished, to each person for whom a Share Investment Account is maintained, all
information known by the Plan Administrator to have been furnished by the issuer
or by or on behalf of any person making such Tender Offer, to the holders of
Shares in connection with such Tender Offer.

          (b)   To the extent that any person shall fail to give instructions
with respect to Shares allocated to his Share Investment Account:

          (i)   the Trustee shall (A) tender or otherwise offer for purchase,
     exchange or redemption a number of such Shares equal to the product of (I)
     the number of allocated Shares for which no written instructions have been
     given, multiplied by (II) a fraction, the numerator of which is the number
     of allocated Shares tendered or otherwise offered for purchase, exchange or
     redemption in accordance with written instructions given as provided in
     section 12.4(a) and the denominator of which is the aggregate number of
     allocated Shares for which written instructions have been given as
     aforesaid, and (B) withhold a number of Shares equal to the excess (if any)
     of (I) the number of allocated Shares for which no written instructions
     have been given over (II) the number of Shares being tendered or otherwise
     offered pursuant to section 12.4(b)(i)(A); or

          (ii)  if the Trustee shall determine that it may not, consistent with
     its fiduciary duties, exercise the tender or other rights appurtenant to
     allocated Shares for which no written instructions have been given in the
     manner described in section 12.4(b)(i), it shall tender, or otherwise
     offer, or withhold such Shares in such manner as it, in its discretion, may
     determine to be in the best interests of the persons to whose Share
     Investment Accounts such Shares have been allocated.

          (c)   In the case of any Tender Offer, any Financed Shares held in the
Loan Repayment Account shall be dealt with as follows:

                (i)  If such Tender Offer occurs at a time when there are no
     Shares allocated to the Share Investment Accounts of Participants, Former
     Participants and the Beneficiaries of deceased Former Participants, then
     the disposition of the Financed Shares shall be determined as follows:

                     (A)  each person who is a Participant on the applicable
     record date will be granted a number of tender rights equal to the
     quotient, rounded to the nearest integral number, of (I) such Participant's
     Allocation Compensation for the Plan Year ending on or immediately prior to
     such record date (or for the portion of such Plan Year during which he was
     a Participant), divided by (II) $1,000.00; and

                     (B)  on the last day for delivering Shares or otherwise
     responding to such Tender Offer, a number of Shares equal to the product of
     (I) the total number of Financed Shares allocated to the Loan Repayment
     Account on the last day of the effective period of such Tender Offer;
     multiplied by (II) a fraction, the numerator of which is the total number
     of tender rights exercised in favor of the delivery of Shares

                                      -28-
<PAGE>

     in response to the Tender Offer pursuant to section 12.4(c)(i)(A) and the
     denominator of which is the total number of tender rights that are
     exercisable in response to the Tender Offer pursuant to section
     12.4(c)(i)(A), shall be delivered in response to the Tender Offer; and

                         (C)  a number of Shares equal to the excess of (I) the
     total number of Financed Shares allocated to the Loan Repayment Account on
     the last day of the effective period of such Tender Offer; over (II) the
     number of Shares to be delivered in response to the Tender Offer pursuant
     to section 12.4(c)(i)(B), shall be withheld from delivery.

               (ii)  If such Tender Offer occurs at a time when the voting
     rights appurtenant to such Financed Shares are to be exercised in
     accordance with section 12.3(c)(i), then:

                         (A)  on the last day for delivering Shares or otherwise
     responding to such Tender Offer, a number of Financed Shares equal to the
     product of (I) the total number of Financed Shares allocated to the Loan
     Repayment Account on the last day of the effective period of such Tender
     Offer; multiplied by (II) a fraction, the numerator of which is the total
     number of Shares delivered from the Share Investment Accounts of
     Participants, Former Participants and the Beneficiaries of deceased Former
     Participants in response to such Tender Offer pursuant to section 12.4(a),
     and the denominator of which is the total number of Shares allocated to the
     Share Investment Accounts of Participants, Former Participants and
     Beneficiaries of deceased Former Participants immediately prior to the last
     day for delivering Shares or otherwise responding to such Tender Offer,
     shall be delivered; and

                         (B)  a number of Financed Shares equal to the excess of
     (I) the total number of Financed Shares allocated to the Loan Repayment
     Account on the last day for delivering Shares or otherwise responding to
     such Tender Offer; over (II) the number of Financed Shares to be delivered
     pursuant to section 12.4(c)(ii)(A), shall be withheld from delivery.

     To the extent that the Financed Shares consist of more than one class of
     Shares, this section 12.4(c) shall be applied separately with respect to
     each class of Shares.

                                 Article XIII

                              Payment of Benefits

          Section 13.1   In General.

          The balance credited to a Participant's or Former Participant's
Account under the Plan shall be paid only at the times, to the extent, in the
manner and to the persons provided in this Article XIII.

                                      -29-
<PAGE>

           Section 13.2   Designation of Beneficiaries.

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

           (b)      A Participant or Former Participant who is married shall
automatically be deemed to have designated his spouse as his Beneficiary,
unless, prior to the time such designation would, under section 13.2(a), become
irrevocable:

           (i)      the Participant or Former Participant designates an
     additional or a different Beneficiary in accordance with this section 13.2;
     and

           (ii) (A) the spouse of such Participant or Former Participant
     consents to such designation in a writing that acknowledges the effect of
     such consent and is witnessed by a Plan representative or a notary public;
     or (B) the spouse of such Participant or Former Participant has previously
     consented to such designation by signing a written waiver of any right to
     consent to any designation made by the Participant or Former Participant,
     and such waiver acknowledged the effect of the waiver and was witnessed by
     a Plan representative or a notary public; or (C) it is established to the
     satisfaction of a Plan representative that the consent required under
     section 13.2(b)(ii)(A) may not be obtained because such spouse cannot be
     located or because of other circumstances permitted under regulations
     issued by the Secretary of the Treasury.

           (c)      In the event that a Beneficiary entitled to payments
hereunder shall die after the death of the person who designated him but prior
to receiving payment of his entire interest in the Account of the person who
designated him, then such Beneficiary's interest in the Account of such person,
or any unpaid balance thereof, shall be paid as provided in section 13.3 to the
Beneficiary who has been designated by the deceased Beneficiary, or if there is
none, to the executor or administrator of the estate of such deceased
Beneficiary, or if no such executor or administrator is appointed within such
time as the Plan Administrator, in his sole discretion, shall deem reasonable,
to such one or more of the spouse and descendants and blood relatives of such
deceased Beneficiary as the Plan Administrator may select. If a person entitled
to a benefit under the Plan and any of the Beneficiaries designated by him shall
die in such circumstances that there shall be substantial doubt as to which of
them shall have been the first to die, for all purposes of the Plan, the person
who made the Beneficiary designation shall be deemed to have survived such
Beneficiary.

           (d)      If no Beneficiary survives the person entitled to the
benefit under the Plan or if no Beneficiary has been designated by such person,
such benefit shall be paid to the executor or administrator of the estate of
such person, or if no such executor or administrator is appointed within such
time as the Plan Administrator, in his sole discretion, shall deem reasonable,
to such one or more of the spouse and descendants and blood relatives of such
deceased person as the Plan Administrator may select.

                                      -30-
<PAGE>

          Section 13.3   Distributions to Participants.

          (a)  Except as provided in section 13.5, the vested portion of the
balance credited to a Former Participant's Account shall be distributed to him
in a single lump sum distribution as of the last Valuation Date to occur in the
Plan Year in which he terminates employment with all Affiliated Employers or the
Plan Year in which he attains age 65, whichever is later; provided, however,
that if the Former Participant elects, at such time and in such manner as the
Plan Administrator may prescribe, that distribution be made as of an earlier
date following his termination of employment with all Affiliated Employers;
provided further, that if the total vested balance credited to his Account at or
at any time after termination of employment is $5,000 or less, his entire vested
interest in his Account shall be paid to him in a single lump sum as soon as
practicable after termination of employment.

          (b)  In the event of the death of a Participant or Former Participant
before the date of actual distribution of the vested portion of the balance
credited to his Account, such vested portion shall be distributed to his
Beneficiary in a single distribution as of the first Valuation Date to occur
following the latest of (i) the date on which the Plan Administrator is notified
of the Participant's or Former Participant's death; and (ii) the date on which
the Plan Administrator determines the identity and location of the Participant's
or Former Participant's Beneficiary or Beneficiaries.  The actual distribution
shall be made within sixty days after the applicable Valuation Date.

          Section 13.4   Manner of Payment.

          Distributions made pursuant to section 13.3 or section 13.5 shall be
made in the maximum number of whole Shares that are available, plus, if
necessary, an amount of money equal to any remaining amount of the distribution
that is less than the Fair Market Value of a whole Share; provided, however,
that the distributions made pursuant  to section 13.3 or section 13.5 shall be
made in any combination of whole Shares and cash as the Participant or Former
Participant shall elect.

                                      -31-
<PAGE>

          Section 13.5   Minimum Required Distributions.

          (a)  Required minimum distributions of a Participant's or Former
Participant's Account shall commence no later than:

          (i)  if the Participant or Former Participant was not a Five Percent
     Owner at any time during the Plan Year ending in the calendar year in which
     he attained age 70 1/2, during any of the four preceding Plan Years or
     during any subsequent years, the later of (A) the calendar year in which he
     attains or attained age 70 1/2 or (B) the calendar year in which he
     terminates employment with all Affiliated Employers; or

          (ii) if the Participant or Former Participant attains age 70 1/2 after
     December 31, 1998 and is or was a Five Percent Owner at any time during the
     Plan Year ending in the calendar year in which he attained age 70 1/2,
     during any of the four preceding Plan  Years or during any subsequent
     years, the later of (A) the calendar year in which he attains age 70 1/2 or
     (B) the calendar year in which he first becomes a Five Percent Owner.

          (b)  The required minimum distributions contemplated by section
13.5(a) shall be made as follows:

          (i)  The minimum required distribution to be made for the calendar
     year for which the first minimum distribution is required shall be no later
     than April 1st of the immediately following calendar year and shall be
     equal to the quotient obtained by dividing (A) the vested balance credited
     to the Participant's or Former Participant's Account as of the last
     Valuation Date to occur in the calendar year immediately preceding the
     calendar year in which the first minimum distribution is required (adjusted
     to account for any additions thereto or subtractions therefrom after such
     Valuation Date but on or before December 31st of such calendar year); by
     (B) the Participant's or Former Participant's life expectancy (or, if his
     Beneficiary is a Designated Beneficiary, the joint life and last survivor
     expectancy of him and his Beneficiary); and

          (ii) the minimum required distribution to be made for each calendar
     year following the calendar year for which the first minimum distribution
     is required shall be made no later than December 31st of the calendar year
     for which the distribution is required and shall be equal to the quotient
     obtained by dividing (A) the vested balance credited to the Participant's
     or Former Participant's Account as of the last Valuation Date to occur in
     the calendar year prior to the calendar year for which the distribution is
     required (adjusted to account for any additions thereto or subtractions
     therefrom after such Valuation Date but on or before December 31st of such
     calendar year and, in the case of the distribution for the calendar year
     immediately following the calendar year for which the first minimum
     distribution is required, reduced by any distribution for the prior
     calendar year that is made in the current calendar year); by (B) the
     Participant's or Former Participant's life expectancy (or, if his
     Beneficiary is a Designated Beneficiary, the joint life and last survivor
     expectancy of him and his Beneficiary).

                                      -32-
<PAGE>

For purposes of this section 13.5, the life expectancy of a Participant or
Former Participant (or the joint life and last survivor expectancy of a
Participant or Former Participant and his Designated Beneficiary) for the
calendar year in which the Participant or Former Participant attains age 70 1/2
shall be determined on the basis of Tables V and VI, as applicable, of section
1.72-9 of the Income Tax Regulations as of the Participant's or Former
Participant's and Beneficiary's birthday in such year.  Such life expectancy or
joint life and last survivor expectancy for any subsequent year shall be equal
to the excess of (1) the life expectancy or joint life and last survivor
expectancy for the year in which the Participant or Former Participant attains
age 70 1/2, over (2) the number of whole years that have elapsed since the
Participant or Former Participant attained age 70 1/2.

          (c)       Payment of the distributions required to be made to a
Participant or Former Participant under this section 13.5 shall be made in
accordance with section 13.4.

          Section 13.6   Direct Rollover of Eligible Rollover Distributions.

          (a)       A Distributee may elect, at the time and in the manner
prescribed by the Plan Administrator, to have any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by
the Distributee in a Direct Rollover.

          (b)       The following rules shall apply with respect to Direct
Rollovers made pursuant to this section 13.6:

          (i)       A Distributee may only elect to make a Direct Rollover of an
     Eligible Rollover Distribution if such Eligible Rollover Distribution (when
     combined with other Eligible Rollover Distributions made or to be made in
     the same calendar year) is reasonably expected to be at least $200;

          (ii)      If a Distributee elects a Direct Rollover of a portion of an
     Eligible Rollover Distribution, that portion must be equal to at least
     $500; and

          (iii)     A Distributee may not divide his or her Eligible Rollover
     Distribution into separate distributions to be transferred to two or more
     Eligible Retirement Plans.

          (c)       For purposes of this section 13.6 and any other applicable
section of the Plan, the following definitions shall have the following
meanings:

          (i)       Direct Rollover means a payment by the Plan to the Eligible
     Retirement Plan specified by the Distributee.

          (ii)      Distributee means an Employee or former Employee. In
     addition, the Employee's or former Employee's surviving spouse and the
     Employee's spouse or former spouse who is the alternate payee under a
     Qualified Domestic Relations Order are considered Distributees with regard
     to the interest of the spouse or former spouse.

          (iii)     Eligible Retirement Plan means an individual retirement
     account described in section 408(a) of the Code, an individual retirement
     annuity described in section 408(b) or the Code, an annuity plan described
     in section 403(a) of the Code, or a qualified trust described in section
     401(a) of the Code that accepts the

                                      -33-
<PAGE>

     Distributee's Eligible Rollover Distribution. However, in the case of an
     Eligible Rollover Distribution to the current or former spouse who is the
     alternative payee under a Qualified Domestic Relations Order or to a
     surviving spouse, an Eligible Retirement Plan is an individual retirement
     account or individual retirement annuity.

          (iv) Eligible Rollover Distribution means any distribution of all or
     any portion of the balance to the credit of the Distributee, except that an
     Eligible Rollover Distribution does not include:  any distribution that is
     one of a series of substantially equal periodic payments (not less
     frequently than annually) made for the life (or life expectancy) of the
     Distributee or the joint lives (or joint life expectancies) of the
     Distributee's designated Beneficiary, or for a specified period of ten (10)
     years or more; any distribution to the extent such distribution is required
     under section 401(a)(9) of the Code; and the portion of any distribution
     that is not includible in gross income (determined without regard to the
     exclusion for net unrealized appreciation with respect to employer
     securities).

          Section 13.7   Valuation of Shares Upon Distribution.

          Notwithstanding any contrary provision in this Article XIII, in the
event that all or a portion of a payment of a distribution is to be made in
cash, the recipient shall only be entitled to receive the proceeds of the Shares
allocated to his Account that are sold in connection with such distribution and
which are valued as of the date of such sale.

          Section 13.8   Put Options.

          (a)  Subject to section 13.8(c) and except as provided otherwise in
section 13.8(b), each Participant or Former Participant to whom Shares are
distributed under the Plan, each Beneficiary of a deceased Participant or Former
Participant, including the estate of a deceased Participant or Former
Participant, to whom Shares are distributed under the Plan, and each person to
whom such a Participant, Former Participant or Beneficiary gives Shares that
have been distributed under the Plan shall have the right to require Charter
Financial Corp. to purchase from him all or any portion of such Shares.  A
person shall exercise such right by delivering to Charter Financial Corp. a
written notice, in such form and manner as Charter Financial Corp. may by
written notice to such person prescribe, setting forth the number of Shares to
be purchased by Charter Financial Corp., the number of the stock certificate
evidencing such person's ownership of such Shares, and the effective date of the
purchase.  Such notice shall be given at least 30 days in advance of the
effective date of purchase, and the effective date of purchase specified therein
shall be, either within the 60 day period that begins on the date on which the
Shares to be purchased by Charter Financial Corp. were distributed from the Plan
or within the 60 day period that begins on the first day of the Plan Year
immediately following the Plan Year in which the Shares to be purchased by
Charter Financial Corp. are distributed from the Plan.  As soon as practicable
following its receipt of such a notice, Charter Financial Corp. shall take such
actions as are necessary to purchase the Shares specified in such notice at a
price per Share equal to the Fair Market Value of a Share determined as of the
Valuation Date coincident with or immediately preceding the effective date of
the purchase.

                                      -34-
<PAGE>

          (b)       Charter Financial Corp. shall have no obligation to purchase
any Share (i) pursuant to a notice that is not timely given, or on an effective
date of purchase that is not within the periods prescribed in section 13.8(a),
or (ii) during a period in which Shares are publicly traded on an established
market.

          Section 13.9   Right of First Refusal.

          (a)       For any period during which Shares are not publicly traded
on an established market, no person who owns Shares that were distributed from
the Plan, other than a person to whom such Shares were sold in compliance with
this section 13.9, shall sell such Shares to any person other than Charter
Financial Corp. without first offering to sell such Shares to Charter Financial
Corp. in accordance with this section 13.9.

          (b)       In the event that a person to whom this section 13.9 applies
shall receive and desire to accept from a person other than Charter Financial
Corp. an offer to purchase Shares to which this section 13.9 applies, he shall
furnish to Charter Financial Corp. a written notice which shall:

          (i)       include a copy of such offer to purchase;

          (ii)      offer to sell to Charter Financial Corp. the Shares subject
     to such offer to purchase at a price per Share that is equal to the greater
     of:

                    (A)  the price per Share specified in such offer to
          purchase; or

                    (B)  the Fair Market Value of a Share as of the Valuation
          Date coincident with or immediately preceding the date of such notice;

     and otherwise upon the same terms and conditions as those specified in such
     offer to purchase; and

          (iii)     include an indication of his intention to accept such offer
     to purchase if Charter Financial Corp. does not accept his offer to sell.

Such person shall refrain from accepting such offer to purchase for a period of
fourteen days following the date on which such notice is given.

          (c)       Charter Financial Corp. shall have the right to purchase the
Shares covered by the offer to sell contained in a notice given pursuant to
section 13.9(b), on the terms and conditions specified in such notice, by
written notice given to the party making the offer to sell not later than the
fourteenth day after the notice described in section 13.9(b) is given.  If
Charter Financial Corp. does not give such a notice during the prescribed
fourteen day period, then the person owning such Shares may accept the offer to
purchase described in the notice.

                                      -35-
<PAGE>

                                  Article XIV

                               Change in Control

          Section 14.1   Definition of Change in Control; Pending Change in
Control.

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

          (i)       any event upon which any "person" (as such term is used in
     sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
     amended), other than (A) a trustee or other fiduciary holding securities
     under any employee benefit plan maintained for the benefit of employees of
     Charter Financial Corp.; (B) a corporation owned, directly or indirectly,
     by the stockholders of Charter Financial Corp. in substantially the same
     proportions as their ownership of stock of Charter Financial Corp.; or (C)
     any group constituting a person in which employees of Charter Financial
     Corp. are substantial members, becomes the "beneficial owner" (as defined
     in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly,
     of securities issued by Charter Financial Corp. representing 25% or more of
     the combined voting power of all of Charter Financial Corp.'s then
     outstanding securities; or

          (ii)      any event upon which the individuals who on the Effective
     Date were members of the Board of Directors of Charter Financial Corp.
     together with individuals whose election by such Board or nomination for
     election by Charter Financial Corp.'s stockholders was approved by the
     affirmative vote of at least two-thirds of the members of such Board then
     in office who were either members of such Board on the Effective Date or
     whose nomination or election was previously so approved, cease for any
     reason to constitute a majority of the members of such Board, but
     excluding, for this purpose, any such individual whose initial assumption
     of office is in connection with an actual or threatened election contest
     relating to the election of directors of Charter Financial Corp. (as such
     terms are used in Rule 14a-11 of Regulation 14A promulgated under the
     Securities Exchange Act of 1934) as amended; or

          (iii)     the consummation of either:

                    (A)  a merger or consolidation of Charter Financial Corp.
          with any other corporation, other than a merger or consolidation
          following which both of the following conditions are satisfied:

                         (I)  either (1) the members of the Board of Directors
                    of Charter Financial Corp. immediately prior to such merger
                    or consolidation constitute at least a majority of the
                    members of the governing body of the institution resulting
                    from such merger or consolidation; or (2) the shareholders
                    of Charter Financial Corp. own securities of the institution
                    resulting from such merger or consolidation representing 60%
                    or more of the combined voting

                                      -36-
<PAGE>

                    power of all such securities then outstanding in
                    substantially the same proportions as their ownership of
                    voting securities of Charter Financial Corp. before such
                    merger or consolidation; and

                         (II) the entity which results from such merger or
                    consolidation expressly agrees in writing to assume and
                    perform Charter Financial Corp.'s obligations under the
                    Plan; or

                    (B)  a complete liquidation of Charter Financial Corp. or an
          agreement for the sale or disposition by Charter Financial Corp. of
          all or substantially all of its assets; or

          (iv)      any event that would be described in section 16.1 if
     "CharterBank" were substituted for "Charter Financial Corp." therein.

In no event, however, shall the transaction by which CharterBank converts from a
mutual institution to a stock institution, or any transaction by which a company
wholly owned by CharterBank becomes the parent company of CharterBank, be deemed
a Change in Control.

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

          (i)       approval by the stockholders of Charter Financial Corp. of a
     transaction, or a plan for the consummation of a transaction, which, if
     consummated, would result in a Change in Control;

          (ii)      approval by the Board of Directors of Charter Financial
     Corp. of a transaction, or a plan for the consummation of a transaction,
     which, if consummated, would result in a Change in Control;

          (iii)     the commencement of a tender offer (within the meaning of
     section 14(d)(i) of the Exchange Act, as amended) for securities issued by
     Charter Financial Corp., which, if completed, would result in a Change in
     Control;

          (iv)      the furnishing or distribution of a proxy statement or other
     document, whether or not in opposition to management, soliciting proxies,
     consents or authorizations (within the meaning of section 14 of the
     Exchange Act) in respect of securities issued by Charter Financial Corp. in
     favor of any election, transaction or other action which, if effected,
     would result in a Change in Control; or

          (v)       any event which would be described in Sections 14.1(b)(i),
     (ii), (iii) or (iv) if "CharterBank" were substituted for "Charter
     Financial Corp." therein.

          Section 14.2   Vesting on Change of Control.

                                      -37-
<PAGE>

          Notwithstanding any other provision of the Plan, upon the effective
date of a Change in Control, the Account of each person who would then, upon
termination of the Plan, be entitled to a benefit, shall be fully vested and
nonforfeitable.

          Section 14.3  Repayment of Share Acquisition Loan.

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

          Section 14.4  Plan Termination After Change in Control.

          Notwithstanding any other provision of the Plan, after repayment of
the loan and allocation of Shares or proceeds as provided in Section 14.3, the
Plan shall be terminated and all amounts shall be distributed as soon as
practicable.

          Section 14.5  Amendment of Section XIV.

          Notwithstanding any other provision of the Plan, this Section 14 of
the Plan may not be amended after the earliest date on which a Change in Control
or Pending Change in Control occurs, except (i) to the extent any amendment is
required by the Internal Revenue Service as a condition to the continued
treatment of the Plan as a tax-qualified plan under section 401(a) of the Code
or (ii) to the extent that the Company, in its sole discretion, determines than
any such amendment is necessary in order to permit any transaction to which the
Company, and/or its parent or affiliate, is or proposes to be a party to qualify
for "pooling of interests" accounting treatment.

                                  Article XV

                                Administration

          Section 15.1  Named Fiduciaries.

          The term "Named Fiduciary" shall mean (but only to the extent of the
responsibilities of each of them) the Plan Administrator, the Committee, the
Board and the Trustee.  This Article XV is intended to allocate to each Named
Fiduciary the responsibility for the prudent execution of the functions assigned
to him or it, and none of such responsibilities or any other responsibility
shall be shared by two or more of such Named Fiduciaries.  Whenever one Named
Fiduciary is required by the Plan or Trust Agreement to follow the directions of
another Named Fiduciary, the two Named

                                      -38-
<PAGE>

Fiduciaries shall not be deemed to have been assigned a shared responsibility,
but the responsibility of the Named Fiduciary giving the directions shall be
deemed his sole responsibility, and the responsibility of the Named Fiduciary
receiving those directions shall be to follow them insofar as such instructions
are on their face proper under applicable law.

          Section 15.2   Plan Administrator.

          There shall be a Plan Administrator, who shall be such Employee or
officer as may be designated by the Committee, as hereinafter provided, and who
shall, subject to the responsibilities of the Committee and the Board, have the
responsibility for the day-to-day control, management, operation and
administration of the Plan (except trust duties). In the absence of a
designation by the Committee, the Plan Administrator shall be the Committee. The
Plan Administrator shall have the following responsibilities:

          (a)  To maintain records necessary or appropriate for the
     administration of the Plan;

          (b)  To give and receive such instructions, notices, information,
     materials, reports and certifications to the Trustee as may be necessary or
     appropriate in the administration of the Plan;

          (c)  To prescribe forms and make rules and regulations consistent with
     the terms of the Plan and with the interpretations and other actions of the
     Committee;

          (d)  To require such proof of age or evidence of good health of an
     Employee, Participant or Former Participant or the spouse of either, or of
     a Beneficiary as may be necessary or appropriate in the administration of
     the Plan;

          (e)  To prepare and file, distribute or furnish all reports, plan
     descriptions, and other information concerning the Plan, including, without
     limitation, filings with the Secretary of Labor and communications with
     Participants, Former Participants and other persons, as shall be required
     of the Plan Administrator under ERISA;

          (f)  To determine any question arising in connection with the Plan,
     and the Plan Administrator's decision or action in respect thereof shall be
     final and conclusive and binding upon the Employer, the Trustee,
     Participants, Former Participants, Beneficiaries and any other person
     having an interest under the Plan; provided, however, that any question
     relating to inconsistency or omission in the Plan, or interpretation of the
     provisions of the Plan, shall be referred to the Commit tee by the Plan
     Administrator and the decision of the Committee in respect thereof shall be
     final;

          (g)  Subject to the provisions of section 15.5, to review and dispose
     of claims under the Plan filed pursuant to section 15.4;

          (h)  If the Plan Administrator shall determine that by reason of
     illness, senility, insanity, or for any other reason, it is undesirable to
     make any payment to a

                                      -39-
<PAGE>

     Participant, Former Participant, Beneficiary or any other person entitled
     thereto, to direct the application of any amount so payable to the use or
     benefit of such person in any manner that he may deem advisable or to
     direct in his discretion the with holding of any payment under the Plan due
     to any person under legal disability until a representative competent to
     receive such payment in his behalf shall be appointed pursuant to law;

          (i)  To discharge such other responsibilities or follow such
     directions as may be assigned or given by the Committee or the Board; and

          (j)  To perform any duty or take any action which is allocated to the
     Plan Administrator under the Plan.

The Plan Administrator shall have the power and authority necessary or
appropriate to carry out his responsibilities.  The Plan Administrator may
resign only by giving at least 30 days' prior written notice of resignation to
the Committee, and such resignation shall be effective on the date specified in
such notice.

          Section 15.3   Committee Responsibilities.

          The Committee shall, subject to the responsibilities of the Board,
have the following responsibilities:

          (a)  To review the performance of the Plan Administrator;

          (b)  To hear and decide appeals, pursuant to the claims procedure
     contained in section 15.5 of the Plan, taken from the decisions of the Plan
     Administrator;

          (c)  To hear and decide questions, including interpretation of the
     Plan, as may be referred to the Committee by the Plan Administrator;

          (d)  To review the performance of the Trustee and such investment
     managers as may be appointed in or pursuant to the Trust Agreement in
     investing, managing and controlling the assets of the Plan;

          (e)  To the extent required by ERISA, to establish a funding policy
     and method consistent with the objectives of the Plan and the requirements
     of ERISA, and to review such policy and method at least annually;

          (f)  To report and make recommendations to the Board regarding changes
     in the Plan, including changes in the operation and management of the Plan
     and removal and replacement of the Trustee and such investment managers as
     may be appointed in or pursuant to the Trust Agreement;

          (g)  To designate an Alternate Plan Administrator to serve in the
     event that the Plan Administrator is absent or otherwise unable to
     discharge his responsibilities;

                                      -40-
<PAGE>

          (h)  To remove and replace the Plan Administrator or Alternate, or
     both of them, and to fill a vacancy in either office;

          (i)  To the extent provided under and subject to the provisions of the
     Trust Agreement, to appoint "investment managers" as defined in section
     3(38) of ERISA to manage and control (including acquiring and disposing of)
     all or any of the assets of the Plan;

          (j)  With the prior approval of the Board, to direct the Trustee to
     obtain one or more Share Acquisition Loans;

          (k)  To develop and provide procedures and forms necessary to
     facilitate voting and tendering directions on a confidential basis;

          (l)  To discharge such other responsibilities or follow such
     directions as may be assigned or given by the Board; and

          (m)  To perform any duty or take any action which is allocated to the
     Committee under the Plan.

The Committee shall have the power and authority necessary or appropriate to
carry out its responsibilities.

          Section 15.4   Claims Procedure.

          Any claim relating to benefits under the Plan shall be filed with the
Plan Administrator on a form prescribed by him.  If a claim is denied in whole
or in part, the Plan Administrator shall give the claimant written notice of
such denial, which notice shall specifically set forth:

          (a)  The reasons for the denial;

          (b)  The pertinent Plan provisions on which the denial was based;

          (c)  Any additional material or information necessary for the claimant
     to perfect his claim and an explanation of why such material or information
     is needed; and

          (d)  An explanation of the Plan's procedure for review of the denial
     of the claim.

In the event that the claim is not granted and notice of denial of a claim is
not furnished by the 30th day after such claim was filed, the claim shall be
deemed to have been denied on that day for the purpose of permitting the
claimant to request review of the claim.

                                      -41-
<PAGE>

          Section 15.5   Claims Review Procedure.

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

          (a)  The reasons for the decision; and

          (b)  The pertinent Plan provisions on which the decision is based.

Any such decision of the Committee shall be binding upon the claimant and the
Employer, and the Plan Administrator shall take appropriate action to carry out
such decision.

          Section 15.6   Allocation of Fiduciary Responsibilities and Employment
                         of Advisors.

          Any Named Fiduciary may:

          (a)  Allocate any of his or its responsibilities (other than trustee
     responsibilities) under the Plan to such other person or persons as he or
     it may designate, provided that such allocation and designation shall be in
     writing and filed with the Plan Administrator;

          (b)  Employ one or more persons to render advice to him or it with
     regard to any of his or its responsibilities under the Plan; and

          (c)  Consult with counsel, who may be counsel to the Employer.

          Section 15.7   Other Administrative Provisions.

          (a)  Any person whose claim has been denied in whole or in part must
exhaust the administrative review procedures provided in section 15.5 prior to
initiating any claim for judicial review.

          (b)  No bond or other security shall be required of a member of the
Committee, the Plan Administrator, or any officer or Employee of the Employer to
whom fiduciary responsibilities are allocated by a Named Fiduciary, except as
may be required by ERISA.

                                      -42-
<PAGE>

          (c)  Subject to any limitation on the application of this section
15.7(c) pursuant to ERISA, neither the Plan Administrator, nor a member of the
Committee, nor any officer or Employee of the Employer to whom fiduciary
responsibilities are allocated by a Named Fiduciary, shall be liable for any act
of omission or commission by himself or by another person, except for his own
individual willful and intentional malfeasance.

          (d)  The Plan Administrator or the Committee may, except with respect
to actions under section 15.5, shorten, extend or waive the time (but not beyond
60 days) required by the Plan for filing any notice or other form with the Plan
Administrator or the Committee, or taking any other action under the Plan.

          (e)  The Plan Administrator or the Committee may direct that the costs
of services provided pursuant to section 15.6, and such other reasonable
expenses as may be incurred in the administration of the Plan, shall be paid out
of the funds of the Plan unless the Employer shall pay them.

          (f)  Any person, group of persons, committee, corporation or
organization may serve in more than one fiduciary capacity with respect to the
Plan.

          (g)  Any action taken or omitted by any fiduciary with respect to the
Plan, including any decision, interpretation, claim denial or review on appeal,
shall be conclusive and binding on all interested parties and shall be subject
to judicial modification or reversal only to the extent it is determined by a
court of competent jurisdiction that such action or omission was arbitrary and
capricious and contrary to the terms of the Plan.

                                  Article XVI

                 Amendment, Termination and Tax Qualification

          Section 16.1  Amendment and Termination by Charter Financial Corp.

          The Participating Employers expect to continue the Plan indefinitely,
but specifically reserve the right, in their sole discretion, at any time, by
appropriate action of their respective boards of directors or other authorized
officials , to amend, in whole or in part, any or all of the provisions of the
Plan and to terminate the Plan at any time.  Subject to the provisions of
section 16.2, no such amendment or termination shall permit any part of the
Trust Fund to be used for or diverted to purposes other than for the exclusive
benefit of Participants, Former Participants, Beneficiaries or other persons
entitled to benefits, and no such amendment or termination shall reduce the
accrued benefit of any Participant, Former Participant, Beneficiary or other
person who may be entitled to benefits, without his consent.  In the event of a
termination or partial termination of the Plan, or in the event of a complete
discontinuance of the Participating Employer's contributions to the Plan, the
Accounts of each affected person shall forthwith become nonforfeitable and shall
be payable in accordance with the provisions of Article XIII.

                                      -43-
<PAGE>

          Section 16.2   Amendment or Termination Other Than by Charter
                         Financial Corp.

          In the event that a corporation or trade or business other than
Charter Financial Corp. shall adopt this Plan, such corporation or trade or
business shall, by adopting the Plan, empower Charter Financial Corp., to amend
or terminate the Plan, insofar as it shall cover employees of such corporation
or trade or business, upon the terms and conditions set forth in section 16.1;
provided, however, that any such corporation or trade or business may, by action
of its board of directors or other governing body, amend or terminate the Plan,
insofar as it shall cover employees of such corporation or trade or business, at
different times and in a different manner.  In the event of any such amendment
or termination by action of the board of directors or other governing body of
such a corporation or trade or business, a separate plan shall be deemed to have
been established for the employees of such corporation or trade or business, and
the assets of such plan shall be segregated from the assets of this Plan at the
earliest practicable date and shall be dealt with in accordance with the
documents governing such separate plan.

          Section 16.3   Conformity to Internal Revenue Code.

          The Participating Employers have established the Plan with the intent
that the Plan and Trust will at all times be qualified under section 401(a) and
exempt under section 501(a) of the Code and with the intent that contributions
under the Plan will be allowed as deductions in computing the net income of
the Participating Employers for federal income tax purposes, and the provisions
of the Plan and Trust Agreement shall be construed to effectuate such
intentions. Accordingly, notwithstanding anything to the contrary hereinbefore
provided, the Plan and the Trust Agreement may be amended at any time without
prior notice to Participants, Former Participants, Beneficiaries or any other
persons entitled to benefits, if such amendment is deemed by the Board to be
necessary or appropriate to effectuate such intent.

          Section 16.4   Contingent Nature of Contributions.

          (a)  All Discretionary Contributions and Loan Repayment Contributions
to the Plan are conditioned upon the issuance by the Internal Revenue Service of
a determination that the Plan and Trust are qualified under section 401(a) of
the Code and exempt under section 501(a) of the Code.  If the Participating
Employers apply to the Internal Revenue Service for such a determination
within 90 days after the date on which it files its federal income tax return
for its taxable year that includes the last day of the Plan Year in which the
Plan is adopted, and if the Internal Revenue Service issues a determination that
the Plan and Trust are not so qualified or exempt, all Discretionary
Contributions made by the Participating Employers prior to the date of receipt
of such a determination may, at the election of the Participating Employers, be
returned to the Participating Employers within one year after the date of such
determination.

          (b)  All Discretionary Contributions and Loan Repayment Contributions
to the Plan are made upon the condition that such Discretionary Contributions
and Loan Repayment Contributions will be allowed as a deduction in computing the
net income of the Employer for federal income tax purposes.  To the extent that
any such deduction is disallowed, the amount

                                      -44-
<PAGE>

disallowed may, at the election of the Participating Employers, be returned to
the Participating Employers within one year after the deduction is disallowed.

          (c)  Any contribution to the Plan made by the Participating Employers
as a result of a mistake of fact may, at the election of the Participating
Employers, be returned to the Participating Employers within one year after such
contribution is made.

                                 Article XVII

                    Special Rules for Top Heavy Plan Years

          Section 17.1   In General.

          As of the Determination Date for each Plan Year, the Plan
Administrator shall determine whether the Plan is a Top Heavy Plan in accordance
with the provisions of this Article XVII.  If, as of such Determination Date,
the Plan is a Top Heavy Plan, then the Plan Year immediately following such
Determination Date shall be a Top Heavy Plan Year and the special provisions of
this Article XVII shall be in effect; provided, however, that if, as of the
Determination Date for the Plan Year in which the Effective Date occurs, the
Plan is a Top Heavy Plan, such Plan Year shall be a Top Heavy Plan Year, and the
provisions of this Article XVII shall be given retroactive effect for such Plan
Year.

          Section 17.2   Definition of Top Heavy Plan.

          (a)  Subject to section 17.2(c), the Plan is a Top Heavy Plan if, as
of a Determination Date:  (i) it is not a member of a Required Aggregation
Group, and (ii)(A) the sum of the Cumulative Accrued Benefits of all Key
Employees exceeds 60% of (B) the sum of the Cumulative Accrued Benefits of all
Employees (excluding former Key Employees), former Employees (excluding former
Key Employees and other former Employees who have not performed any services for
the Employer or any Affiliated Employer during the immediately preceding five
Plan Years), and their Beneficiaries.

                                      -45-
<PAGE>

          (b)  Subject to section 17.2(c), the Plan is a Top Heavy Plan if, as
of a Determination Date:  (i) the Plan is a member of a Required Aggregation
Group, and (ii)(A) the sum of the Cumulative Accrued Benefits of all Key
Employees under all plans that are members of the Required Aggregation Group
exceeds 60% of (B) the sum of the Cumulative Accrued Benefits of all Employees
(excluding former Key Employees), former Employees (excluding former Key
Employees and other former Employees who have not performed any services for the
Employer or any Affiliated Employer during the immediately preceding five Plan
Years), and their Beneficiaries under all plans that are members of the Required
Aggregation Group.

          (c)  Notwithstanding sections 17.2(a) and 17.2(b), the Plan is not a
Top Heavy Plan if, as of a Determination Date: (i) the Plan is a member of a
Permissible Aggregation Group, and (ii)(A) the sum of the Cumulative Accrued
Benefits of all Key Employees under all plans that are members of the
Permissible Aggregation Group does not exceed 60% of (B) the sum of the
Cumulative Accrued Benefits of all Employees (excluding former Key Employees),
former Employees (excluding former Key Employees and other former Employees who
have not performed any services for the Employer or any Affiliated Employer
during the immediately preceding five Plan Years), and their Beneficiaries under
all plans that are members of the Permissible Aggregation Group.

          Section 17.3   Determination Date.

          The Determination Date for the Plan Year in which the Effective Date
occurs shall be the last day of such Plan Year, and the Determination Date for
each Plan Year beginning after the Plan Year in which the Effective Date occurs
shall be the last day of the preceding Plan Year.  The Determination Date for
any other qualified plan maintained by the Employer for a plan year shall be the
last day of the preceding plan year of each such plan, except that in the case
of the first plan year of such plan, it shall be the last day of such first plan
year.

          Section 17.4   Cumulative Accrued Benefits.

          (a)   An individual's Cumulative Accrued Benefits under this Plan as
of a Determination Date are equal to the sum of:

          (i)   the balance credited to such individual's Account under this
     Plan as of the most recent Valuation Date preceding the Determination Date;

          (ii)  the amount of any Discretionary Contributions or Loan Repayment
     Contributions made after such Valuation Date but on or before the
     Determination Date; and

          (iii) the amount of any distributions of such individual's Cumulative
     Accrued Benefits under the Plan during the five year period ending on the
     Determination Date.

                                      -46-
<PAGE>

For purposes of this section 17.4(a), the computation of an individual's
Cumulative Accrued Benefits, and the extent to which distributions, rollovers
and transfers are taken into account, will be made in accordance with section
416 of the Code and the regulations thereunder.

          (b)   For purposes of this Plan, the term "Cumulative Accrued
Benefits" with respect to any other qualified plan, shall mean the cumulative
accrued benefits determined for purposes of section 416 of the Code under the
provisions of such plans.

          (c)   For purposes of determining the top heavy status of a Required
Aggregation Group or a Permissible Aggregation Group, the Cumulative Accrued
Benefits under this Plan and the Cumulative Accrued Benefits under any other
plan shall be determined as of the Determination Date that falls within the same
calendar year as the Determination Dates for all other members of such Required
Aggregation Group or Permissible Aggregation Group.

          Section 17.5   Key Employees.

          (a)   For purposes of the Plan, the term Key Employee means any
employee or former employee of the Employer or any Affiliated Employer who is at
any time during the current Plan Year or was at any time during the immediately
preceding four Plan Years:

          (i)   a Five Percent Owner;

          (ii)  a person who would be described in section 1.26 if the number
     "1%" were substituted for the number "5%" in section 1.26 and who has an
     annual Total Compensation from the Employer and any Affiliated Employer of
     more than $150,000;

          (iii) an Officer of the Employer or any Affiliated Employer who has
     an annual Total Compensation greater than 50% of the amount in effect under
     section 415(b)(1)(A) of the Code for any such Plan Year; or

          (iv)  one of the ten persons owning the largest interests in the
     Employer and having an annual Total Compensation from the Employer or any
     Affiliated Employer in excess of the dollar limitation in effect under
     section 415(c)(1)(A) of the Code for such Plan Year.

          (b)   For purposes of section 17.5(a):

          (i)   for purposes of section 17.5(a)(iii), in the event the Employer
     or any Affiliated Employer has more officers than are considered Officers,
     the term Key Employee shall mean those officers, up to the maximum number,
     with the highest annual compensation in any one of the five consecutive
     Plan Years ending on the Determination Date; and

                                      -47-
<PAGE>

          (ii)  for purposes of section 17.5(a)(iv), if two or more persons have
     equal ownership interests in the Employer, each such person shall be
     considered as having a larger ownership interest than any such person with
     a lower annual compensation from the Employer or any Affiliated Employer.

          (c)   For purposes of section 17.5(a): (i) a person's compensation
from Affiliated Employers shall be aggregated, but his ownership interests in
Affiliated Employers shall not be aggregated; (ii) an employee shall only be
deemed to be an officer if he has the power and responsibility of a person who
is an officer within the meaning of section 416 of the Code; and (iii) the term
Key Employee shall also include the Beneficiary of a deceased Key Employee.

          Section 17.6   Required Aggregation Group.

          For purposes of this Article XVII, a Required Aggregation Group shall
consist of (a) this Plan; (b) any other qualified plans maintained by the
Employer and any Affiliated Employers that cover Key Employees; and (c) any
other qualified plans that are required to be aggregated for purposes of
satisfying the requirements of sections 401(a)(4) or 410(b) of the Code.

          Section 17.7   Permissible Aggregation Group.

          For purposes of this Article XVII, a Permissible Aggregation Group
shall consist of (a) the Required Aggregation Group and (b) any other qualified
plans maintained by the Employer and any Affiliated Employers; provided,
however, that the Permissible Aggregation Group must satisfy the requirements of
sections 401(a)(4) and 410(b) of the Code.

          Section 17.8   Special Requirements During Top Heavy Plan Years.

          Notwithstanding any other provision of the Plan to the contrary, for
each Top Heavy Plan Year, in the case of a Participant (other than a Key
Employee) on the last day of such Top Heavy Plan Year who is not also a
participant in another qualified plan which satisfies the minimum contribution
and benefit requirements of section 416 of the Code with respect to such
Participant, the sum of the Discretionary Contributions and Loan Repayment
Contributions made with respect to such Participant, when expressed as a
percentage of his Total Compensation for such Top Heavy Plan Year, shall not be
less than 3% of such Participant's Total Compensation for such Top Heavy Plan
Year or, if less, the highest combined rate, expressed as a percentage of Total
Compensation at which Discretionary Contributions and Loan Repayment
Contributions were made on behalf of a Key Employee for such Top Heavy Plan
Year.  The Employer shall make an additional contribution to the Account of
each Participant to the extent necessary to satisfy the foregoing requirement.

                                      -48-
<PAGE>

                                 Article XVIII

                           Miscellaneous Provisions

          Section 18.1   Governing Law.

          The Plan shall be construed, administered and enforced according to
the laws of the State of Georgia without giving effect to the conflict of laws
principles thereof, except to the extent that such laws are preempted by federal
law.

          Section 18.2   No Right to Continued Employment.

          Neither the establishment of the Plan, nor any provisions of the Plan
or of the Trust Agreement establishing the Trust Fund nor any action of the Plan
Administrator, the Committee or the Trustee, shall be held or construed to
confer upon any Employee any right to a continuation of employment by any
Affiliated Employer.  Each Affiliated Employer reserves the right to dismiss any
Employee or otherwise deal with any Employee to the same extent as though the
Plan had not been adopted.

          Section 18.3   Construction of Language.

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

          Section 18.4   Headings.

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

          Section 18.5   Merger with Other Plans.

          The Plan shall not be merged or consolidated with, nor transfer its
assets or liabilities to, any other plan unless each Participant, Former
Participant, Beneficiary and other person entitled to benefits, would (if that
plan then terminated) receive a benefit immediately after the merger,
consolidation or transfer which is equal to or greater than the benefit he would
have been entitled to receive if the Plan had terminated immediately before the
merger, consolidation or transfer.

                                      -49-
<PAGE>

          Section 18.6   Non-alienation of Benefits.

          (a)  Except as provided in section 18.6(b) and (c), the right to
receive a benefit under the Plan shall not be subject in any manner to
anticipation, alienation or assignment, nor shall such right be liable for or
subject to debts, contracts, liabilities or torts.  Should any Participant,
Former Participant or other person attempt to anticipate, alienate or assign his
interest in or right to a benefit, or should any person claiming against him
seek to subject such interest or right to legal or equitable process, all the
interest or right of such Participant or Former Participant or other person
entitled to benefits in the Plan shall cease, and in that event such interest or
right shall be held or applied, at the direction of the Plan Administrator, for
or to the benefit of such Participant or Former Participant, or other person or
his spouse, children or other dependents in such manner and in such proportions
as the Plan Administrator may deem proper.

          (b)  This section 18.6 shall not prohibit the Plan Administrator from
recognizing a Domestic Relations Order that is determined to be a Qualified
Domestic Relations Order in accordance with section 18.7.

          (c)  Notwithstanding anything in the Plan to the contrary, a
Participant's, Former Participant's or Beneficiary's Accounts under the Plan may
be offset by any amount such Participant, Former Participant or Beneficiary is
required or ordered to pay to the Plan if:

          (i)  the order or requirement to pay arises: (A) under a judgment
     issued on or after August 5, 1997 of conviction for a crime involving the
     Plan; (B) under a civil judgment (including a consent order or decree)
     entered by a court on or after August 5, 1997 in an action brought in
     connection with a violation (or alleged violation) of part 4 of subtitle B
     of title I of ERISA; or (C) pursuant to a settlement agreement entered into
     on or after August 5, 1997 between the Participant, Former Participant or
     Beneficiary and one or both of the United States Department of Labor and
     the Pension Benefit Guaranty Corporation in connection with a violation (or
     alleged violation) of part 4 of subtitle B of title I of ERISA by a
     fiduciary or any other person; and

          (ii) the judgment, order, decree or settlement agreement expressly
     provides for the offset of all or part of the amount ordered or required to
     be paid to the Plan against the Participant's, Former Participant's or
     Beneficiary's benefits under the Plan.

          Section 18.7   Procedures Involving Domestic Relations Orders.

          Upon receiving a Domestic Relations Order, the Plan Administrator
shall segregate in a separate account or in an escrow account or separately
account for the amounts payable to any person pursuant to such Domestic
Relations Order, pending a determination whether such Domestic Relations Order
constitutes a Qualified Domestic Relations Order, and shall give notice of the
receipt of the Domestic Relations Order to the Participant or Former Participant
and each other person affected thereby.  If, within 18 months after receipt of
such Domestic Relations Order, the Plan Administrator, a court of competent
jurisdiction or another appropriate authority determines that such Domestic
Relations Order constitutes a Qualified Domestic Relations Order, the Plan

                                      -50-
<PAGE>

Administrator shall direct the Trustee to pay the segregated amounts (plus any
interest thereon) to the person or persons entitled thereto under the Qualified
Domestic Relations Order.  If it is determined that the Domestic Relations Order
is not a Qualified Domestic Relations Order or if no determination is made
within the prescribed 18-month period, the segregated amounts shall be
distributed as though the Domestic Relations Order had not been received, and
any later determination that such Domestic Relations Order constitutes a
Qualified Domestic Relations Order shall be applied only with respect to
benefits that remain undistributed on the date of such determination. The Plan
Administrator shall be authorized to establish such reasonable administrative
procedures as he deems necessary or appropriate to administer this section 18.7.
This section 18.7 shall be construed and administered so as to comply with the
requirements of section 401(a)(13) of the Code.

          Section 18.8   Leased Employees.

          (a)  Subject to section 18.8(b), a leased employee shall be treated as
an Employee for purposes of the Plan.  For purposes of this section 18.8, the
term "leased employee" means any person (i) who would not, but for the
application of this section 18.8, be an Employee and (ii) who pursuant to an
agreement between an Affiliated Employer and any other person ("leasing organiza
tion") has performed services for the Affiliated Employer (or for the Affiliated
Employer and related persons determined in accordance with section 414(n)(6) of
the Code), on a substantially full-time basis for a period of at least one year
under the primary direction or control of an Affiliated Employer.

          (b)  For purposes of the Plan:

          (i)  contributions or benefits provided to the leased employee by the
     leasing organization which are attributable to services performed for the
     Employer shall be treated as provided by the Employer; and

          (ii) section 18.8(a) shall not apply to a leased employee if:

               (A)  the number of leased employees performing services for the
          Employer does not exceed 20% of the number of the Employer's Employees
          who are not Highly Compensated Employees; and

               (B)  such leased employee is covered by a money purchase pension
          plan providing (I) a nonintegrated contribution rate of at least 10%
          of the leased employee's compensation; (II) immediate participation;
          (III) full and immediate vesting; and (IV) coverage for all of the
          employees of the leasing organization (other than employees who
          perform substantially all of their services for the leasing
          organization).

          Section 18.9   Status as an Employee Stock Ownership Plan.

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

                                      -51-

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