Document:

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                                                                     Exhibit 10D

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement") made and entered into this
__ day of April, 2001, by and among BILLY Jack Johnson, JR., a resident of the
State of Alabama (the "Executive"), and FIRST SOUTHERN BANK, a banking
corporation organized under the laws of the State of Alabama (the "Bank").

                              W I T N E S S E T H:

         WHEREAS, the Bank and the Executive desire to enter into an employment
relationship with the other; and

         WHEREAS, the Bank and the Executive each deem it necessary and
desirable to execute a written document setting forth the terms and conditions
of said relationship.

         NOW, THEREFORE, in consideration of the employment of the Executive by
the Bank, of the mutual covenants, promises and agreements herein made, and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

         1. Employment. The Bank hereby employs Executive's full-time services
            ----------
as Executive Vice President and Senior Credit Officer of the Bank, commencing on
the first day of employment, which shall be May __, 2001 or at Executive's
option beginning on a date not later than June 1, 2001 (the "Commencement
Date"). This Agreement shall be for a term of three years, beginning on the
Commencement Date. Executive hereby accepts such employment. Executive shall
diligently perform the duties customarily performed by such officer, subject to
the authority of the Board, and shall hold and perform all of the
responsibilities and duties prescribed by the Board and by the Bylaws of the
Bank. During the term of this Agreement, Executive will devote his full time and
effort to his duties hereunder, to the exclusion of all other employment or
business interests other than passive personal investments, charitable,
religious or civic activities.

         2. Base Salary. As compensation for his services to the Bank, the Bank
            -----------
agrees to pay Executive an annual salary of Eighty-Five Thousand Dollars
($85,000.00) beginning on the Commencement Date. The annual salary shall be paid
in equal bi-weekly installments. Payment will be in accordance with the Bank's
payroll policies in effect from time to time.

         3. Benefits. The Bank agrees to provide Executive with the following
            --------
benefits commencing with the Commencement Date, or as soon thereafter as
practicable, and continuing for so long as Executive is employed under this
Agreement or any extension thereof:

                  (a) The Bank shall also provide for the Executive a $350.00
         per month cafeteria plan benefit, which may be used by Executive to
         fund benefits selected by him, including major medical and
         hospitalization insurance. The Bank shall have the right to obtain a
         term life insurance policy on the Executive for the benefit of the Bank
         up to an amount equal to twice his annual salary.

                  (b)      An annual paid vacation of three weeks.

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                  (c) Use of a late model automobile to include all operating
         and maintenance expenses.

                  (d) Reimbursement of monthly dues and Bank related expenses of
         Executive at Turtle Point Country Club.

                  (e) Other benefits as the Board may approve from time to time.

         4. Expenses. Executive is authorized to incur necessary and customary
            --------
expenses in connection with the business of the Bank, including expenses for
entertainment, trade association meetings, travel, promotion and similar
matters. The Bank will pay or reimburse Executive, pursuant to the Bank's
policy, for such expenses upon presentation by Executive of the appropriate
records which verify such expenses.

         5. Bonus. The Bank recognizes it is important that Executive have a
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bonus incentive to encourage accomplishment of specified corporate goals, as
identified from time to time by the Board or a duly authorized committee of the
Board. The Board shall review Executive's performance against the specified
goals at least annually. Based on the Bank's regulatory situation and financial
condition, and the Executive's new employment, the Board shall by July 2001
discuss with Executive both short-term and long-term objectives. Executive will
not be eligible for a bonus during calendar year 2001. Executive's first annual
review shall be in May 2002, and Executive will be eligible for a bonus of up to
25% of his base salary, based on criteria to be mutually agreed upon by the
Board and the Executive by July 15, 2001.

         6. Stock Options. The Bank shall provide for the Executive's
            -------------
eligibility to participate in the Stock Option Plan of First Southern
Bancshares, Inc., a Delaware corporation, the parent company of the Bank, and
the Executive is hereby issued options to purchase 10,000 shares of common
stock, subject to the terms of the Stock Option Agreement between the Executive
and First Southern Bancshares, Inc. as provided in Exhibit A, which is attached
hereto and incorporated herein by reference.

         7. Severance.
            ---------

                  (a) If Executive becomes disabled or dies, he or his survivors
         will receive a severance payment in an amount equal to the Executive's
         annual salary at the time of termination payable in a lump sum upon
         termination, plus the benefits described in paragraph 3(a) of this
         Agreement for a period of one year.

                  (b) If Executive is terminated "for cause" as defined in
         paragraph 10, Executive will receive no severance payment, and any
         other benefits described hereunder shall also terminate as of the
         termination date of employment.

                  (c) If Executive is terminated "without cause", Executive will
         receive a severance payment in an amount equal to fifty percent (50%)
         the Executive's annual salary at the time of termination payable in a
         lump sum upon termination, plus the benefits described in paragraph
         3(a) of this Agreement for a six month period.

                                       -2-

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                  (d) If Executive terminates his employment as a result of a
         Change of Control or is terminated as a result of a Change of Control,
         he will receive a severance payment in an amount equal to two times the
         Executive's annual salary at the time of termination payable in a lump
         sum upon termination, plus the benefits described in paragraph 3(a) of
         this Agreement for a two-year period.

         8. Termination. Except for the provisions of paragraphs 11 and 12,
            -----------
which shall continue in full force and effect, this Agreement shall terminate
upon the first to occur of the following:

                  (a) The death of Executive;

                  (b) The permanent disability of Executive, as defined in
         paragraph 9;

                  (c) Termination by the Bank "for cause" as defined in
         paragraph 10;

                  (d) Termination by the Bank "without cause" or pursuant to a
         "Change in Control" as defined below. The Bank reserves the right to
         terminate the Executive at any time.

                  (e) Termination by Executive; provided that Executive shall
         give not less than thirty (30) days' written notice of termination.
         Upon receipt of notice of intended termination given by Executive, the
         Bank reserves the right to terminate the Executive's employment
         effective immediately, provided that in such instance, except in the
         event of a Change in Control, the Bank shall pay an amount equal to
         Executive's Base Salary due for the remainder of the thirty (30) day
         notice period to the termination date, or thirty (30) days, whichever
         is less.

                  (f) The end of the three year term provided for in paragraph 1
         hereof.

                  Subject to approval from the appropriate bank regulatory
         authorities, a "Change in Control" shall be deemed to occur upon the
         happening of any of the following events:

                           (i) A sale or other disposition of substantially all
                  of the assets of the Bank or First Southern Bancshares, Inc.,
                  a Delaware corporation, the Bank's parent company, (the
                  "Company"), or a sale or disposition of the issued and
                  outstanding common stock of the Bank or the Company in a
                  single transaction or in a series of transactions to a single
                  person or entity or group of affiliated persons or entities;
                  or

                           (ii) A merger or consolidation of the Bank or the
                  Company with or into any other entity, if immediately after
                  giving effect to such transaction more than fifty percent
                  (50%) of the issued and outstanding common stock of the
                  surviving entity of such transaction is held by a single
                  person or entity or group of affiliated persons or entities
                  who were not in control of the Bank or the Company prior to
                  such transaction.

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         9. Disability. Executive shall be considered to be permanently disabled
            ----------
in the event that (a) Executive shall suffer permanent total disability as that
term is defined under the Alabama Workers' Compensation Law as in effect at the
time of such disability, and (b) either Executive or the Bank shall have given
the other party thirty (30) days' written notice of his or its intention to
terminate Executive's employment because of such disability. In the event that
Executive and the Bank are in material disagreement regarding Executive's
physical or mental condition, the Bank shall authorize a panel of three (3)
physicians selected by the Bank to examine Executive to conclusively determine
by a majority whether Executive is physically or mentally incapable hereunder.

         10. Termination for Cause. As used in paragraph 8(c), termination "for
             ---------------------
cause" shall include, termination for Executive's use of illegal
non-prescription drugs or drug or alcohol addiction; acts of dishonesty or
infidelity; conviction of a felony; habitual neglect of duty; objectionable acts
or conduct as determined by the Bank's banking regulators; or willful or gross
negligence in carrying out the activities for which employed.

         11. Disclosure of Confidential Information. Executive acknowledges that
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the Bank possesses certain methods of operation and information concerning its
business affairs, including customer lists and other customer information, which
are valuable, special and unique assets of its business. Without prior Board
approval, Executive agrees not to disclose, during or after the term of his
employment, any such information, or any part thereof to any bank, person, firm,
corporation, association or other entity for any reason or purpose whatsoever.

         12. Non-Compete/Non-Solicitation.
             ----------------------------

                  (a) It is understood and agreed by parties to this Agreement
         that under the following conditions, Executive hereby agrees not to
         directly or indirectly (1) compete with the Bank nor (2) solicit its
         employees:

                           (i) If Executive voluntarily resigns his position;

                           (ii) If there is a Change of Control in the ownership
                  of the Bank; or

                           (iii) If Executive is terminated "without cause."

                  (b) Executive hereby agrees that in the event of termination
         pursuant to paragraph 12(a)(i) or (ii), he will not solicit the Bank's
         employees to leave the services of the Bank, or compete with the Bank
         within the areas of Lauderdale and Colbert counties in Alabama (the
         "Non-Compete Area") for a period of two years from the date of
         termination. If the Executive is terminated under paragraph 12(a)(iii),
         then Executive hereby agrees not to solicit the Bank's employees or
         compete within the Non-Compete Area for a period of one year from the
         date of termination. The nonsolicitation provision shall apply to any
         Bank employee during the period of such employee's employment with the
         Bank and for a period of 30 days after an employee's termination of
         employment with the Bank. Executive can and may invest or purchase
         stock in any financial institution. However, Executive may not serve on
         the Board of Directors of any financial institution other than the Bank
         or act as a consultant or otherwise influence employees to join said
         institution during the term of this Agreement and for a period of two
         (2) years from the

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         date of termination as provided in paragraph 12(a)(i) or (ii) above or
         for a period of one (1) year from the date of termination as provide in
         paragraph 12(a)(iii) above.

         13. Assignment. The rights and obligations of the Bank and Executive
             ----------
(except the Executive's obligations to perform services) under this Agreement
shall inure to the benefit of and shall be binding upon their respective
successors, if any. The rights and obligations of Executive under this Agreement
shall inure only to the benefit of Executive and are not assignable by Executive
to any other person or entity by virtue of the unique and personal nature of
Executive's services. It is agreed among the parties that there shall be no
third-party beneficiaries with standing to enforce this Agreement.

         14. Bank's Conditions to Execution of Agreement. The execution of this
             -------------------------------------------
Agreement by the Bank is subject to authorization and ratification by its Board
of Directors at the next scheduled meeting, and the employment of Executive as
provided for herein is subject to prior approval of the Bank's primary
regulators.

         15. Entire Agreement. This Agreement contains the entire agreement
             ----------------
between the parties and supersedes all prior discussion, understanding and
commitments, whether oral or written. This Agreement cannot be amended or
modified except by subsequent written agreement signed by all parties hereto.

         16. Attorney's Fees and Costs. If an action at law or in equity is
             -------------------------
necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to reasonable attorneys' fees, costs and necessary
disbursements in addition to any other relief to which he may be entitled.

         17. Controlling Law. This Agreement is being executed in and will be
             ---------------
performed in the State of Alabama and shall be construed, controlled and
interpreted according to the laws of Alabama.

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

                                         THE BANK:

                                         FIRST SOUTHERN BANK

                                         By: /s/ First Southern Bank
                                            ------------------------------------

                                         EXECUTIVE:

                                         /s/ Billy Jack Johnson, Jr.
                                         ------------------------------------
                                         BILLY JACK JOHNSON, JR.

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                                  EXHIBIT 4.2
                                  -----------

                    Investment Election Form of CharterBank.
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                            Investment Election Form
                            ------------------------

                       Participant Election to Invest in

          Charter Financial Corporation Stock ("Employer Stock Fund")

                            CharterBank 401(k) Plan

If you would like to participate in the Offering using amounts currently in your
account in the Bank's 401(k) Plan, please complete this form and return it to
Phyllis Boyett in the Human Resources Department by no later than 10:00 a.m. on
August 31, 2001.

Participant's Name (please print):______________________________________________
Social Security Number: ________________________________________________________
Address:________________________________________________________________________
                Street                      City         State      Zip Code

1. Background Information

     Charter Financial Corporation will be issuing shares of common stock, par
value $0.01 per share (the "Common Stock"), to certain depositors and the public
(the "Offering") in connection with the reorganization of CharterBank from a
mutual holding company to a stock holding company structure (the
"Reorganization").

     Participants in the CharterBank 401(k) Plan (the "Plan") are being given an
opportunity to direct the trustee of the Plan (the "Trustee") to purchase Common
Stock in the Offering with amounts currently in their Plan account.  In
connection therewith, a new investment fund under the Plan--the "Employer Stock
Fund"--comprised primarily of Common Stock is being established.  Participants
are also being given the opportunity, after the Offering, to direct future pay
deferrals under the Plan to the Employer Stock Fund.

     Prior to making a decision to direct the Trustee to purchase Common Stock,
we strongly urge you to carefully review the Prospectus and the Summary Plan
Description that accompany this Investment Election Form.  Your decision to
direct the transfer of amounts credited to your account balances to the Employer
Stock Fund in order to purchase shares of Common Stock in connection with the
Offering is irrevocable.  Notwithstanding this irrevocability, Participants may
transfer out some or all of their shares in the Employer Stock Fund, if any, and
into one or more of the Plan's other investment funds at such times as are
provided for under the Plan's rules for such transfers.

     Investing in any stock entails some risks and we encourage you to discuss
your investment decision with your investment advisor.  Neither the Trustee nor
the Plan Administrator is authorized to make any representations about this
investment.  You should not rely on any information other than information
contained in the Prospectus and the Summary Plan Description in making your
investment decision.

     Any shares purchased by the Plan based on your election will be subject to
the conditions and restrictions otherwise applicable to Common Stock purchased
directly by you in the Offering.  These restrictions are described in the
Prospectus.

2. Investment Elections

     If you would like to participate in the Offering with amounts currently in
your 401(k) Plan, please indicate the amount you wish to purchase and what
percentage of each of your current funds you would like to transfer into the
Employer Stock Fund below.  In calculating the number of shares of Common Stock
that the Trustee will purchase in the Offering based on your election, the
Trustee will use your 401(k) account balances as of the date on which your order
is processed.

     In the event that the Trustee is unable to use the total amount that you
elect below to have transferred into the Employer Stock Fund to purchase Common
Stock due to an oversubscription in the Offering, the amount that is not
invested in the Employer Stock Fund will be reallocated among your other 401(k)
fund investments in the same manner that your current elective pay deferrals are
being allocated.

     I would like to purchase the following number of shares
        of Common Stock: _________. ($10.00 per share)

     Check the following box if you wish to have funds transferred from your
        current 401(k) Plan investments pro rata [_].

     Otherwise, indicate the whole percentage to be transferred from one or more
                             -----                                   -----------
        of the following funds into the Employer Stock Fund:

Percentage  From Fund                      Percentage  From Fund

       __%  BOA-Fixed                             __%  Drey S&P 500 Index Fund
       __%  Nat Money Market Fnd Cls R            __%  Janus Fund
       __%  Drey A Bonds Plus                     __%  Janus Worldwide Fnd
       __%  Nat IntUSGovtBond Fnd Cls D           __%  Temp Foreign Fnd Cls A
       __%  Drey Balanced Fnd                     __%  Am Cent Ultra Fnd IC
       __%  Fid Adv Balanced Fnd Cls A            __%  Drey Em Leaders Fnd
       __%  Fid Adv High Yld Fnd Cls T            __%  Janus Twenty Fnd
       __%  Am Cent Income & Grwth AC             __%  War Pin Emg Grth CS

Note: If you do not complete the information above, you will not participate in
the Offering by using your 401(k) Plan funds.

3. Purchaser Information

     The ability of participants in the Plan to purchase Common Stock in the
Reorganization and to direct their current account balances into the Employer
Stock Fund is based upon the participant's status as an Eligible Account Holder
or Supplemental Eligible Account Holder.  Please indicate your status.

     a.[_]  Eligible Account Holder-Check here if you were a depositor with
            $50.00 or more on deposit with CharterBank as of September 30, 1999.

     b.[_]  Supplemental Eligible Account Holder-Check here if you were a
            depositor with $50.00 or more on deposit with CharterBank as of June
            30, 2001, but are not an Eligible Account Holder.

     c.[_]  Employee of CharterBank who does not otherwise qualify as an
            Eligible Account Holder or Supplemental Eligible Account Holder.

4. Participant Signature and Acknowledgment - Required

By signing this Election Form, I authorize and direct the Plan Administrator and
Trustee to carry out my instructions.  I acknowledge that I have been provided
with and have read a copy of the Prospectus and Summary Plan Description
relating to the issuance of Common Stock that accompany this Investment Election
Form.  I am aware of the risks involved in investing in Common Stock and
understand that the Trustee and Plan Administrator are not responsible for my
choice of investment.  I understand that my failure to sign this acknowledgment
will make this Investment Election Form null and void.

Participant's Signature:________________________________________________________
Date Signed:____________________________________________________________________

    This form must be completed and returned to Phyllis Boyett in the Human
Resources Department at the Bank by no later than 10:00 a.m. on August 31, 2001.

This Investment Election Form only covers the investment of your current account
balance in the 401(k) Plan in the Employer Stock Fund.  If you would like to
invest future contributions in the Employer Stock Fund, you will need to change
your current investment elections by completing a new investment election form.
These forms are available from the Human Resources Department.

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