Document:

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                                                                    EXHIBIT 10.9

                             EAGLE BANCSHARES, INC.

                           DEFERRED COMPENSATION PLAN

                            EFFECTIVE APRIL 1, 1999

                                   ARTICLE I

                           PURPOSE AND EFFECTIVE DATE

         The purpose of the Eagle Bancshares, Inc. Deferred Compensation Plan
(hereinafter referred to as the "Plan") is to aid Eagle Bancshares, Inc. and its
subsidiaries in attracting and retaining employees, outside directors and
consultants by providing them with savings and tax-deferral opportunities. The
Plan shall be effective for deferral elections effective on or after April 1,
1999.

                                   ARTICLE II

                                  DEFINITIONS

         For the purposes of this Plan, the following words and phrases shall
have the meanings indicated, unless the context clearly indicates otherwise:

         Section 2.01     Administrative Committee. "Administrative Committee"
means the committee the Board appoints.

         Section 2.02     Base Salary. "Base Salary" means the base rate of cash
compensation the Company pays to or for the benefit of a Participant for
services rendered or labor performed while a Participant, including base pay a
Participant could have received in cash in lieu of (A) deferrals pursuant to
Section 4.02 and (B) contributions made on his behalf to any qualified plan the
Company maintains or to any cafeteria plan under section 125 of the Internal
Revenue Code the Company maintains.

         Section 2.03     Base Salary Deferral. "Base Salary Deferral" means the
amount up to 80% of a Participant's Base Salary which the Participant elects to
have withheld on a pre-tax basis and credited to his or her Deferral Account
pursuant to Section 4.02.

         Section 2.04     Beneficiary. "Beneficiary" means the person, persons
or entity the Participant designates pursuant to Article IX to receive any
benefits payable under the Plan.

         Section 2.05      Board. "Board" means the Board of Directors of Eagle
Bancshares, Inc.

         Section 2.06     Change of Control. For purposes of this Plan, a
"Change of Control" shall be deemed to have occurred if:

                  (A)  there is an acquisition, in any one transaction or a
series of transactions, by any individual, entity or group, other than Eagle
Bancshares, Inc. or any of its subsidiaries (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")), of beneficial ownership (within the meaning of Rule 13(d)(3)
promulgated under the Exchange Act) of 20% or more of either the then
outstanding shares of Common Stock or the combined voting power of the then
outstanding voting securities of Eagle Bancshares, Inc. entitled to vote
generally in the election of directors, but excluding, for this purpose, any
such acquisition by Eagle Bancshares, Inc. or any

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of its subsidiaries, or by any employee benefit plan (or related trust) of Eagle
Bancshares, Inc. or any of its subsidiaries, or by any corporation with respect
to which, following such acquisition, more than 50% of the then outstanding
shares of common stock of such corporation and the combined voting power of the
then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by the individuals and entities who were the beneficial owners,
respectively, of the common stock and voting securities of Eagle Bancshares,
Inc. immediately prior to such acquisition in substantially the same proportion
as their ownership, immediately prior to such acquisition, of the then
outstanding shares of Common Stock or the combined voting power of the then
outstanding voting securities of Eagle Bancshares, Inc. entitled to vote
generally in the election of directors, as the case may be; or

                  (B)  individuals who, as of April 1, 1999, constitute the
Board (as of such date, the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board, provided that any individual
becoming a director subsequent to April 1, 1999, whose election, or nomination
for election by Eagle Bancshares, Inc.'s shareholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent 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 the directors of Eagle Bancshares, Inc. (as such terms are
used in Rule 14(a)(11) or Regulation 14A promulgated under the Exchange Act);
or

                  (C)  there occurs either (i) the consummation of a
reorganization, merger or consolidation, in each case, with respect to which the
individuals and entities who were the respective beneficial owners of the common
stock and voting securities of Eagle Bancshares, Inc. immediately prior to such
reorganization, merger or consolidation do not, following such reorganization,
merger or consolidation, beneficially own, directly or indirectly, more than 50%
of, respectively, the then outstanding shares of common stock and the then
outstanding voting securities, as the case may be, of the corporation resulting
from such reorganization, merger or consolidation, or (ii) an approval by the
shareholders of Eagle Bancshares, Inc. of a complete liquidation of dissolution
of Eagle Bancshares, Inc. or of the sale or other disposition of all or
substantially all of the assets of Eagle Bancshares, Inc.

         Section 2.07     Commissions. "Commissions" means any cash commissions
the Company pays to or for the benefit of a Participant for services rendered or
labor performed while a Participant.

         Section 2.08     Commission Deferral. "Commission Deferral" means the
amount of a Participant's Commissions which the Participant elects to have
withheld on a pre-tax basis and credited to his or her Deferral Account pursuant
to Section 4.02.

         Section 2.09     Company. "Company" means Eagle Bancshares, Inc., its
successors, any subsidiary or affiliated organizations the Board authorizes to
participate in the Plan and any organization into which or with which Eagle
Bancshares, Inc. may merge or consolidate or to which all or substantially all
of its assets may be transferred.

         Section 2.10    Consultant. "Consultant" means a person who performs
consulting services solely for Eagle Real Estate Advisors, Inc.

         Section 2.11     Consultant Fees. "Consultant Fees" means the fees the
Company pays to or for the benefit of a Participant for services rendered as a
Consultant while a Participant.

         Section 2.12     Consultant Fees Deferral. "Consultant Fees Deferral"
means the amount of a Participant's Consultant Fees which the Participant elects
to have withheld on a pre-tax basis and credited to his or her Deferral Account
pursuant to Section 4.02.

         Section 2.13     Deferral Account. "Deferral Account" means the account
maintained on the books of the Administrative Committee for each Participant
pursuant to Article VII.

         Section 2.14     Deferred Amount. "Deferred Amount" is defined in
Section 4.02.

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         Section 2.15     Deferral Period. "Deferral Period" is defined in
Section 4.02.

         Section 2.16     Director Fees. "Director Fees" means the fees the
Company pays to or for the benefit of a Participant for services rendered as a
member of the Board while a Participant.

         Section 2.17     Director Fees Deferral. "Director Fees Deferral"
means the amount of a Participant's Director Fees which the Participant elects
to have withheld on a pre-tax basis and credited to his or her Deferral Account
pursuant to Section 4.02.

         Section 2.18     Disability. "Disability" means eligibility for
disability benefits under the terms of the Company's long-term disability plan
as in effect from time to time or in the case of an Outside Director or
Consultant means being disabled as the term is defined under such plan.

         Section 2.19     Eligible Compensation. "Eligible Compensation" means
any Base Salary, Commissions, Consultant Fees, Director fees or Incentive
Compensation otherwise payable with respect to the Plan Year.

         Section 2.20     ERISA. "ERISA" means the Employee Retirement Income
Security Act of 1974, as amended.

         Section 2.21     Form of Payment. "Form of Payment means payment in one
lump sum or in installments of five, 10 or 15 years.

         Section 2.22     Hardship Withdrawal. "Hardship Withdrawal" means the
early payment of all or part of the vested balance in a Deferral Account in the
event of an Unforeseeable Emergency.

         Section 2.23     Incentive Compensation. "Incentive Compensation" means
the amount paid to a Participant during a Plan Year under any incentive plan of
the company or any other incentive payment or bonus.

         Section 2.24     Incentive Deferral. "Incentive Deferral" means the
amount of a Participant's Incentive Compensation which the Participant elects to
have withheld on a pre-tax basis from his Incentive Compensation and credited to
his or her Deferral Account pursuant to Section 4.02.

         Section 2.25     Matching Contribution. "Matching Contribution" means
the amount of annual matching contribution that the Company may make to the
Plan.

         Section 2.26     Outside Director. "Outside Director" means a member of
the Board who is not an Employee of the Company or any of its affiliates.

         Section 2.27     Participant. "Participant" means any individual who is
eligible to participate in this Plan and who elects to participate by filing a
Participation Agreement as provided in Article IV.

         Section 2.28     Participation Agreement. "Participation Agreement"
means an agreement a Participant files in accordance with Article IV.

         Section 2.29     Plan Year. "Plan Year" means the twelve-month period
beginning April I and ending following March 3 1.

         Section 2.30     Retirement. "Retirement" means, as applicable, the
retirement of a Participant from the Company and termination of a Participant as
a member of the Board or as a Consultant, after attaining age 65, or age 55 with
at least 10 years of service with the company and its affiliates.

         Section 2.31     Termination of Employment. "Termination of Employment"
means the cessation of a Participant's employment with the Company and its
affiliates and service as a member of the Board and as a Consultant for any
reason other than Retirement, death or Disability.

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         Section 2.32     Unforeseeable Emergency. "Unforeseeable Emergency"
means severe financial hardship to the Participant resulting from a sudden and
unexpected illness or accident of the Participant or a dependent of the
Participant, loss of the Participant's property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant.

         Section 2.33     Valuation Date. "Valuation Date"  means such dates as
the Administrative Committee in its sole discretion may determine.

         Section 2.34     Vesting of Matching Contributions. "Matching
Contributions" credited to a Deferral Account from which no payments have been
made shall be 100% vested upon the death of a Participant. Otherwise, any other
Matching Contribution shall vest based upon the Participant's combined years of
employment with the Company and its affiliates and years of service as an
Outside Director or Consultant until Termination of Employment, on the following
basis:

Less than two years                                    0%

Greater than two years but less than three years      20%

Greater than three years but less than four years     40%

Greater than four years but less than five years      60%

Greater than five years but less than six years       80%

Greater than six years                               100%

                                  ARTICLE III

                                 ADMINISTRATION

         Section 3.01     Administrative Committee; Duties. The Administrative
Committee shall administer the Plan. A majority of the members of the
Administrative Committee shall constitute a quorum for the transaction of
business. All resolutions or other actions of the Administrative Committee shall
be by a vote of a majority of its members present at any meeting or, without a
meeting, by an instrument in writing that all of its members sign. Members of
the Administrative Committee may participate in a meeting by means of a
conference telephone or similar communications equipment that enables all
persons participating in the meeting to hear each other, and such participation
in a meeting shall constitute presence in person at the meeting. The
Administrative Committee may designate one of its members as a chairperson and
may retain and supervise providers and professionals to perform any or all of
the duties delegated to it hereunder.

         The Administrative committee shall be responsible for the
administration of this Plan and shall have all powers necessary to administer
this Plan, including discretionary authority to determine eligibility for
benefits, to decide claims under the terms of this Plan and to interpret the
Plan, except to the extent that the Administrative Committee vests any such
powers in any other person. In particular, the Administrative Committee shall be
responsible for determining issues related to eligibility, investment
benchmarks, determination of Deferral Account balances, crediting of
hypothetical earnings and of Deferred Amounts and debiting of hypothetical
losses, and administration and oversight of distributions, in-service
withdrawals, deferral elections and any other duties concerning the day-to-day
operation of this Plan. The Administrative Committee may from time to time
establish rules for the administration of this Plan. All rules, interpretations
and decisions of the Administrative Committee shall be conclusive and binding on
the Company, Participants and Beneficiaries.

         Neither the Board nor the Administrative Committee nor any of their
members shall be liable for any act hereunder, whether of omission or
commission, by any other member or by any employee of the Company or by any
agent to whom duties in connection with the administration of this Plan have
been delegated or for anything done or omitted

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to be done in connection with this Plan.

         The Company shall, to the fullest extent permitted by law, indemnify
each director, officer or employee of the Company (including the heirs,
executors, administrators and other personal representatives of such person) and
each member of the Administrative Committee against expenses (including
attorneys' fees), judgments, fines, and amounts paid in settlement that such
person actually and reasonably incurs in connection with any threatened, pending
or actual suit, action or proceeding (whether civil, criminal, administrative or
investigative in nature or otherwise) in which such person may be involved by
reason of the fact that he or she is or was serving this Plan in any capacity at
the request of the Company, the Board or the Administrative Committee.

         The Company shall pay any expenses the Company or the Administrative
Committee incurs relative to the administration of this Plan.

         Section 3.02     Claim Procedure. If a Participant or Beneficiary makes
a written request alleging a right to receive benefits under this Plan or
alleging a right to receive an adjustment in benefits being paid under this
Plan, such request shall be treated as a claim for benefits. All claims for
benefits under this Plan shall be sent to the Administrative Committee. If the
Administrative Committee determines that any individual who has claimed a right
to receive benefits, or a right to receive an adjustment in benefits being paid,
under this Plan is not entitled to receive all or any part of the benefits
claimed, the Administrative Committee shall notify the claimant in writing of
such adverse determination and the reasons therefor in terms calculated to be
understood by the claimant. Such notice shall be sent within 90 days of the
claim unless the Administrative Committee determines that additional time, not
exceeding an additional 90 days, is needed. The notice shall make specific
reference to the pertinent Plan provisions on which the denial is based, and
shall describe any additional material or information that is necessary. Such
notice shall, in addition, inform the claimant of the procedure that the
claimant should follow to take advantage of the review procedures set forth
below in the event the claimant desires to contest the denial of the claim. The
claimant may within 90 days of the notice from the Administrative Committee
submit in writing to the Administrative Committee a statement that the claimant
contests the denial of his or her claim and desires a further review by the
Board. The Board shall within 60 days thereafter review the resubmitted claim
and authorize the claimant to review pertinent documents and submit to the Board
issues and comments relating to the resubmitted claim. The Board will render a
final decision with specific reasons therefor in writing and will transmit it to
the claimant within 60 days of the written request for further review, unless
the Board determines that additional time, not exceeding 60 days, is needed, and
so notifies the claimant.

                                   ARTICLE IV

                                 PARTICIPATION

         Section 4.01     Participation. Participation in the Plan shall be
limited to Consultants, Outside Directors and employees of the Company who are
among a select group of management or highly compensated employees and who (i)
meet such eligibility criteria as the Administrative Committee shall establish
from time to time and (ii) elect to participate in this Plan by filing a
Participation Agreement with the Administrative Committee. A Participation
Agreement must be filed with respect to each Plan Year prior to the March 31st
immediately preceding the Plan Year for which it is effective. The
Administrative Committee shall have the discretion to establish special
deadlines regarding the filing of participation Agreements for specified groups
of Participants.

         Section 4.02     Contents of Participation Agreement. Subject to
Article VIII, each Participation Agreement shall set forth: (A) the amount of
Eligible Compensation for the Plan Year to which the Participation Agreement
relates that is to be deferred under the Plan (the " Deferred Amount"),
expressed as either a dollar amount or a percentage of the (i) Base Salary, (ii)
Commissions, (iii) Consultant Fees, (iv) Director Fees and (v) Incentive
Compensation for such Plan Year; provided, that the minimum Deferred Amount for
any Plan Year shall not be less than $1,000, and provided further, that the
maximum amount of Base Salary a participant can defer for any Plan Year shall
not exceed 80% thereof; (B) the period after which payment of the Deferred
Amount is to be made or to commence (the "Deferral Period"), which shall be the
earlier of (i) a number of full years, not less than three, or (ii) the period
ending upon the Retirement, death, Termination

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of Employment or Disability of the Participant, and (C) the form in which
payments are to be made, other than on account of death, Termination of
Employment or Disability, which may be a lump sum, or in substantially equal
annual installments over five, 10 or 15 years or in the case of an in-service
distribution pursuant to Section 8.03 over four years but not more than 10
years.

         Section 4.03     Modification or Revocation of Election by
Participants. A Participant may not change the rate of his or her Deferred
Amount during a Plan Year. However, a participant may in the event of an
Unforeseeable Emergency terminate his or her Participation Agreement with
respect to Base Salary, Commissions, Consultant Fees and Director Fees for the
Plan Year by filing such forms as the Administrative Committee in its discretion
may prescribe. If the Administrative Committee approves, such termination shall
take effect as of the first payroll period next following the filing of such
forms. If a Participant terminates his or her Participation Agreement during a
Plan Year, he or she will not be permitted to file a new Participation Agreement
again until the next Plan Year. In addition, the Deferral Period may be extended
if an amended Participation Agreement is filed with the Administrative Committee
at least one full calendar year before the Deferral Period was in effect before
such amendment ends. Under no circumstances may a Participation Agreement be
made, modified or revoked retroactively.

                                   ARTICLE V

                             DEFERRED COMPENSATION

         Section 5.01     Elective Deferred Compensation. The Administrative
committee shall credit the Deferred Amount of a Participant with respect to each
Plan Year to the Participant's Deferral Account as and when such Deferred Amount
would otherwise have been paid to the participant. To the extent that any
Federal, state or local law requires the Company to withhold any taxes or other
amounts from the Deferred Amount, such amounts shall be taken from the
compensation of the Participant that is not deferred under this Plan.

         Section 5.02     Vesting of Deferral Account. A Participant shall be
100% vested in his or her Deferral Account at all times except as provided in
Section 6.01 relating to Matching Contributions, and except as provided in
Section 8.07 relating to early withdrawals.

                                   ARTICLE VI

                             MATCHING CONTRIBUTIONS

         Section 6.01     Matching Contribution. For each Plan Year, the
Company, at its sole discretion, may credit a Matching Contribution to the
Deferral Account of a Participant who has elected to defer some portion of his
or her Eligible Compensation otherwise payable with respect to that Plan Year
and who is an employee, Outside Director or Consultant on the last day of such
Plan Year. The amount of the Matching Contribution may vary from Plan Year to
Plan year, may be based on a formula which takes into account a Participant's
total compensation, and otherwise maybe subject to maximum or minimum
limitations. The Matching Contribution shall be deemed to be invested among the
same investment benchmarks indicated in the elections of the Participant
governing the deferrals of the Participant. Matching Contributions shall be
distributed to the Participant according to the election of the Participant
governing his or her deferrals provided they have vested according to Section
2.33. Matching Contributions that do not vest shall be forfeited upon payment,
other than in the event of an Unforeseeable Emergency, and the forfeiture shall
be used to reduce future Matching Contribution.
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                                 ARTICLE VII

                     MAINTENANCE AND INVESTMENT OF ACCOUNTS

         Section 7.01     Maintenance of Accounts. Separate Deferral Accounts
shall be maintained for each Participant. More than one Deferral Account may
be maintained for a Participant as necessary to reflect (A) various investment
benchmarks and (B) separate Participation Agreements specifying different
Deferral Periods or forms of payment. A Participant's Deferral Accounts shall be
utilized solely as a device for the measurement and determination of the amounts
to be paid to the Participant pursuant to this Plan, and shall not constitute or
be treated as a trust fund or segregated account of any kind. The Administrative
Committee shall determine the balance of each Deferral Account, as of each
Valuation Date, by adjusting the balance of such Deferral Account as of the
immediately preceding Valuation Date to reflect changes in the value of the
deemed investments thereof, and credits, debits and distributions with respect
to such Deferral Account since such preceding Valuation Date.

         Section 7.02     Investment Benchmarks. Each Participant shall be
entitled to direct the manner in which his or her Deferral Accounts will be
deemed to be invested, selecting among the investment benchmarks specified in
Appendix A hereto, as the Administrative Committee may amend from time to time,
and in accordance with such rules, regulations and procedures as the Board may
establish from time to time. Deemed earnings and losses based on a Participant's
investment elections shall begin to accrue as of the date such Participant's
Deferred Amounts are credited to his or her Deferral Accounts.

         Section 7.03     Statement of Accounts. The Administrative Committee
shall submit to each Participant quarterly statements of his or her Deferral
Accounts, in such form as the Administrative Committee deems desirable, setting
forth the balance to the credit of such participant in his or her Deferral
Accounts as of the end of the most recently completed quarter.
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                                  ARTICLE VIII

                                    BENEFITS

         Section 8.01      Time and Form of Payment. At the end of the Deferral
Period for each Deferral Account, the Company shall pay the participant in cash
at the time or times the Participant elected in the applicable Participation
Agreement. If the Participant is to receive payments in a lump sum other than
on account of death, the Company shall as soon as practicable pay the vested
balance in such Deferral Accounts determined as of the most recent Valuation
Date preceding the payment date. If the Participant is to receive payments in a
lump sum on account of death, the Company shall as soon as practicable pay the
death benefit described in Section 8.05 determined as of the most recent
Valuation Date preceding the payment date. If the Participant is to receive
payments in installments, the Company shall make annual payments from such
Deferral Accounts, each of which shall consist of an amount equal to (A) the
vested balance of such Deferral Accounts determined as of the most recent
Valuation Date preceding the payment date multiplied by (B) a fraction, the
numerator of which is one and the denominator of which is the number of
remaining installments (including the installment being paid). The first such
installment shall be paid as soon as practicable after the end of the Deferral
Period and each subsequent installment shall be paid on or about the
anniversary of such first payment. Each such installment shall be deemed to be
made on a pro rata basis from each of the different deemed investments of the
Deferral Accounts from which the Participant is to receive payments.

         Section 8.02      Retirement. Except as otherwise set forth in this
Article VIII, if a Participant has elected to receive payments upon Retirement,
the vested balance of the Deferral Accounts of the Participant shall be
distributed upon retirement in installments of a lump sum in accordance with
the Plan and as elected in the Participant Agreement.

         Section 8.03      In-Service Distributions. Except as otherwise set
forth in this Article VIII, if a Participant has elected to defer receipt of
payments under the Plan for a stated number of years, the vested balance of the
Deferral Accounts of the Participant shall be distributed in installments or a
lump sum in accordance with the Plan and as elected in the Participant
Agreement.

         Section 8.04      Termination of Employment and Disability.
Notwithstanding the provisions of Article VIII hereof and any Participant
Agreement, if prior to Retirement and prior to receiving full payment of the
vested balance of his or her Deferral Accounts, a Participant has a Termination
of Employment or incurs a Disability, the remaining vested balance of the
Deferral Accounts of the Participant shall be distributed in a lump sum.

         Section 8.05      Death. Notwithstanding the provisions of Article
VIII hereof and any Participant Agreement, if a Participant on whose life the
company or any grantor trust has purchased a life insurance policy to assist
with the accumulation of funds to pay benefits under the Plan dies prior to
Retirement, Termination of Employment or Disability, two times the entire
Deferral Accounts of the Participant shall be distributed in a lump sum to such
Participant's Beneficiary or Beneficiaries. However, if such Participant dies
at such time and no such life insurance policy has been purchased, then only
the entire balance of the Deferral Accounts of such Participant shall be
distributed in lump sum to the Participant's Beneficiary or Beneficiaries. If
after Retirement a Participant is receiving installments and dies, the
remaining vested balance of the Deferral Accounts of the Participant shall be
distributed in a lump sum to the Participants Beneficiary or Beneficiaries.

         Section 8.06      Hardship Withdrawals. Notwithstanding the provisions
of Article VIII hereof and any Participation Agreement, a Participant shall be
entitled to early payment of all or part of the vested balance in his or her
Deferral Accounts in the event of an Unforeseeable Emergency, in accordance
with this Section 8.06. A distribution pursuant to this Section 8.06 may only
be made to the extent reasonably needed to satisfy the Unforeseeable Emergency,
and may not be made if such is or may be relieved (A) through reimbursement or
compensation by insurance or otherwise, (B) by liquidation of the Participant's
assets to the extent such liquidation would not itself cause severe financial
hardship, or (C) by cessation of participation in the Plan. An application for
an early payment under this Section 8.06 shall be made to the Administrative
Committee in such form and in accordance with such procedures as the
Administrative Committee shall determine from time to time. The Administrative
Committee will determine whether and in what amount and form a distribution
will be permitted pursuant to this Section 8.06.

<PAGE>   9
         Section 8.08      Early Withdrawal with Penalties. Notwithstanding the
provisions of Article VIII hereof and any Participation Agreement, a Participant
shall be entitled to elect to withdraw all of the vested balance in his or her
Deferral Accounts in accordance with this Section 8.07 by filing with the
Administrative Committee such forms, in accordance with such procedures, as the
Administrative Committee shall determine from time to time. As soon as
practicable after receipt of such form by the Administrative committee, if the
Administrative Committee so approves, the Company shall pay an amount equal to
90 percent of the balance in such Participant's vested Deferral Accounts
determined as of the most recent Valuation Date preceding the payment date to
the electing Participant in a lump sum in cash, and the Participant shall
forfeit the remainder of such Deferral Accounts. All Participation Agreements
previously filed by a Participant who elects to make a withdrawal under this
Section 8.07 shall be null and void after such election is filed, and such a
Participant shall not thereafter be entitled to file any Participation
Agreements under the Plan with respect to the first Plan Year that begins after
such election is made.

         Section 8.08      Change of Control. In the event of a Change of
Control that the Board recommends for approval to the shareholders, no
immediate special payment shall be made to any Participant and the terms and
conditions of the Plan shall remain in full force and effect. However, upon a
hostile Change of Control, the Company may immediately pay to each Participant
in a lump sum in cash the vested balance in his or her Deferral Accounts
determined as of the most recent Valuation Date preceding the payment date.
Hostile Change of Control is defined as a Change of Control of the Company that
the Board has not recommended for approval to the shareholders.

         Section 8.09      Severance. Notwithstanding anything to the contrary
herein, the Administrative Committee may, in its sole and exclusive discretion,
determine that the Deferral Accounts of a Participant who has incurred a
Termination of Employment and who receives or will receive severance payments
from the Company shall be paid in installments, at such intervals as the
Administrative Committee may decide.

         Section 8.10      Withholding of Taxes. Notwithstanding any other
provision of this Plan, the Company shall withhold from payments made hereunder
any amounts any applicable law or regulation requires to be so withheld.

                                  ARTICLE IX

                            BENEFICIARY DESIGNATION

         Section 9.01      Beneficiary Designation. Each Participant shall have
the right, at any time, to designate any person, persons or entity as his
Beneficiary or Beneficiaries. A Beneficiary designation shall be made, and may
be amended, by the Participant by filing a written designation with the
Administrative Committee, on such form and in accordance with such procedures
as the Administrative Committee shall establish from time to time.

         Section 9.02      No Beneficiary Designation. If a Participant fails
to designate a Beneficiary as provided above, or if all designated
Beneficiaries predecease the Participant, then the Participant's Beneficiary
shall be deemed to be the Participant's estate.

                                   ARTICLE X

                       AMENDMENT AND TERMINATION OF PLAN

         Section 10.01     Amendment. The Board may at any time amend this Plan
in whole or in part, provided, however, that no amendment shall be effective to
decrease the balance in any Deferral Account as accrued at the time of such
amendment, nor shall any amendment otherwise have a retroactive effect.

         Section 10.02     Company's Right To Terminate. The Board may at any
time terminate the Plan with respect to future Participation Agreements. The
Board may also terminate the Plan in its entirety at any time for any reason,
including without limitation if, in its judgment, the continuance of the Plan,
the tax, accounting, or other effects thereof.

<PAGE>   10

or potential payments thereunder, would not be in the best interests of the
Company, and upon any such termination, the Company shall immediately pay to
each Participant in a lump sum the vested balance in his or her Deferral
Accounts determined as of the most recent Valuation Date preceding the
termination date.

                                   ARTICLE XI

                                 MISCELLANEOUS

         Section 11.01    Unfunded Plan. This Plan is intended to be an unfunded
plan maintained primarily for the purpose of providing deferred compensation for
Consultants. Outside Directors and employees of the Company who are a select
group of management or highly compensated employees. All payments pursuant to
the Plan shall be made from the general funds of the Company and no special or
separate fund shall be established or other segregation of assets made to assure
payment. No participant or other person shall have under any circumstances any
interest in any particular property or assets of the Company as a result of
participating in the Plan. Notwithstanding the foregoing, the Company may (but
shall not be obligated to) create one or more grantor trusts, the assets of
which are subject to the claims of the Company's creditors, to assist it in
accumulating funds to pay its obligations under the Plan.

         Section 11.02    Nonassignability. Except as specifically set forth in
the Plan with respect to the designation of Beneficiaries, neither a Participant
nor any other person shall have any tight to commute, sell, assign, transfer,
pledge, anticipate, mortgage, or otherwise encumber, hypothecate, transfer or
convey in advance of actual receipt the amounts, if any, payable hereunder, or
any part thereof, which are, and all rights to which are, expressly declared to
be unassignable and non-transferable. No part of the amounts payable hereunder
shall, prior to actual payment, be subject to seizure or sequestration for the
payment of any debts, judgments, alimony or separate maintenance that a
participant or any other person claiming through the Participant owes, nor be
transferable by operation of law in the event of a Participant's or any other
such person's bankruptcy or insolvency.

         Section 11.03    Validity and Severability. The invalidity or
unenforceability of any provision of this Plan shall no affect the validity or
enforceability of any other provision of this Plan, which shall remain in full
force and effect, and any invalidity or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.

         Section 11.04    Governing Law. The validity, interpretation,
construction and performance of this Plan shall in all respects be governed by
the laws of the State of Georgia, without reference to principles of conflict of
law, except to the extent preempted by federal law.

         Section 11.05    Employment Status. This Plan does not constitute a
contract of employment or a contract for consulting services or impose on the
Participant or the Company any obligation for the Participant to remain a
Consultant, an Outside Director or an employee of the Company or change the
status of the Participant's employment, service as a Consultant or membership on
the Board or the policies of the Company regarding termination of employment or
service as a Consultant or on the Board.

         Section 11.06    Underlying Incentive Plans and Programs. Nothing in
this Plan shall prevent the company from modifying, amending or terminating the
compensation of the Participant or the incentive plans and programs in which the
Participant is involved, pursuant to which cash awards are earned and which are
deferred under this Plan.

<PAGE>   11

                                   APPENDIX A

Guaranteed Fund or Company Guarantee

Dreyfus S&P 500 Index Fund

Fidelity Advanced Equity Growth Fund T

Salomon Brothers Total Return Fund B<PAGE>   1
                                                                    EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is entered into as of the 1st
day of June, 2001, by and among Integrity Incorporated, a Delaware corporation,
("Employer") and Byron Williamson, an individual residing in Nashville,
Tennessee ("Employee").

         In consideration of the promises, covenants and conditions set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Employee and Employer agree as
follows:

1.       Employment.

         Employee hereby employs Employee and Employee hereby accepts employment
in the position of President and Chief Executive Officer of the Publishing
Division of Integrity Incorporated (the "Position") upon the terms and
conditions hereinafter set forth.

2.       Services.

         During the term of employment hereunder, Employee shall devote his full
professional time and energy to the performance of his duties as President and
Chief Executive Officer of the Publishing Division and shall use his best
efforts in the performance of the same. Employer and Employee agree that
Employee's duties in the Position shall be determined by Employer and may be
altered by Employer from time to time at its sole discretion subject to the
terms of Section 1(b)(iii) of the Change in Control Agreement (as defined in
Section 6 hereof), if applicable. Employer and Employee acknowledge and agree
that Employee's initial duties in the Position shall consist of, among other
things, providing general oversight of the Publishing Division, which includes,
without limitation, direction of all product development, marketing and sales,
purchasing and inventory management, strategic planning, annual budgeting and
other customary duties of a division head.

3.       Compensation.

         For and in consideration of the promises and covenants made herein and
the services to be provided hereunder, Employer agrees to compensate Employee as
follows:

         (a)      Salary. Employer shall pay to Employee an annual salary in the
                  amount of Two Hundred Fifty Thousand Dollars and No Cents
                  ($250,000.00), less taxes and other normal withholdings. Said
                  salary shall be paid to Employee in equal semi-monthly
                  installments.

         (b)      Benefits. Employee shall be entitled to receive or participate
                  in all employment benefits or benefit plans generally made
                  available by Employer to its employees, if any, to the same
                  extent and under the same conditions as other covered
                  employees.

<PAGE>   2

         (c)      Vacation.  Employee shall be entitled to four weeks of paid
                  vacation per fiscal year.

         (d)      Bonus. As long as Employee holds an executive officer position
                  with Employer, Employee shall be eligible to receive cash
                  bonuses under the executive cash bonus compensation system
                  established from time to time by the Employer. Under such
                  system, cash bonuses are awarded in the judgment of the
                  Compensation Committee of the Board of Directors of the
                  Employer based on the achievement of budgeted targets and the
                  individual performance of the Employee.

4.       Term and Termination.

         Employee's employment with Employer shall begin on the 1st day of June,
2001 and shall continue until terminated as provided in this Agreement. Employee
acknowledges and agrees that this Agreement, and his employment with Employer,
shall be terminated upon the occurrence of any of the following events:

         (a)      Employee's death;

         (b)      Employee becoming or remaining Disabled for substantially
                  continuous period of six months. For purposes of this
                  Paragraph, the term "Disabled" shall mean Employee's inability
                  to perform the essential functions of his position with or
                  without reasonable accommodation;

         (c)      Mutual written agreement between Employer and Employee to
                  terminate;

         (d)      Upon six (6) months prior written notice of termination from
                  Employer to Employee for any reason or no reason at all.
                  Provided: Employer, at its sole discretion, may elect to pay
                  to Employee an amount equal to Employee's salary for six (6)
                  months in lieu of providing the notice set forth in this
                  subparagraph; or

         (e)      Immediately upon written notice of termination from Employer
                  "for cause." For purposes of this Agreement, a termination
                  shall be considered to be "for cause" if it occurs in
                  conjunction with a determination by Employer that Employee has
                  committed or engaged in either (i) any intentional act that
                  constitutes, on the part of Employee, fraud, dishonesty,
                  breach of fiduciary duty, a felony or gross misfeasance of
                  duty; or (ii) conduct by Employee in his office with the
                  Employer that is grossly inappropriate and demonstrably likely
                  to lead to material injury to Employer, as determined by the
                  Board of Directors of Employer acting reasonably and in good
                  faith; provided, that in the case of (ii) above, such conduct
                  shall not constitute "cause" unless Employer's Board of
                  Directors shall have delivered to Employee notice setting
                  forth with specificity (A)

                                      -2-
<PAGE>   3

                  the conduct deemed to qualify as "cause", (B) reasonable
                  action that would remedy such objection, and (C) a reasonable
                  time (not less than thirty (30) days) within which Employee
                  may take such remedial action, and Employee shall not have
                  taken such specified remedial action within the specified
                  time.

5.       Severance Payment.

         If Employee's employment with Employer is terminated pursuant to
Section 4(d), the Employee shall be entitled to receive as a severance benefit
aggregate Severance Payments in an amount equal to the amount of the Employee's
annual salary under this Employment Agreement at the time of termination
multiplied by 2, less any amount paid in lieu of termination notice under
Section 4(d). The Severance Payments may be made by the Employer as semi-monthly
salary continuation payments or as a lump sum payment within ninety (90) days
after termination of Employee's employment with Employer, as determined by the
Employer in its sole and absolute discretion. In addition, Employer will
reimburse Employee for the cost of COBRA health insurance continuation benefits
for 18 months after the termination of Employee's employment with Employer and,
thereafter for the remainder of the time that Employee is receiving severance
benefits, the Employer will reimburse Employee for the cost of health insurance
under Employee's own policy or plan up to the amount paid per month by the
Employer during the 18 month COBRA continuation period. Notwithstanding the
foregoing, Employee's rights to the foregoing health insurance benefits shall
terminate as to any benefit for which he becomes eligible that provides
substantially similar benefits on substantially similar terms through a program
of a subsequent employer or otherwise (such as through coverage obtained by
Employee's spouse). If Employee is entitled to severance benefits upon
termination of employment under the terms of a Key Employee Change in Control
Agreement with the Employer, the Employee shall not be entitled to any severance
benefits under this Agreement.

6.       Change in Control.

         Contemporaneously with their execution of this Agreement, Employer and
Employee have agreed to and executed a separate agreement entitled Key Employee
Change in Control Agreement ("Change in Control Agreement"). The Change in
Control Agreement, which is attached hereto as Exhibit A, is hereby expressly
incorporated into and made a part of this Agreement as if its terms were set
forth in full herein.

7.       Non-disclosure of Confidential Information.

                  (a)      Definitions.

         The following definitions shall apply to this Agreement:

                           (i)      "Trade Secrets" means all secret,
                  proprietary or confidential information regarding Employer or
                  its business, including any and all

                                      -3-
<PAGE>   4

                  information not generally known to, or ascertainable by,
                  persons not employed by Employer, the disclosure or knowledge
                  of which would permit those persons to derive actual or
                  potential economic value therefrom or to cause economic or
                  financial harm to Employer. Such information shall include,
                  but not be limited to, financial information, strategic plans
                  and forecasts, marketing plans and forecasts, customer lists,
                  mailing lists, computer software (including without
                  limitation, source code, object code and manuals), customer
                  billing or order information, technical information regarding
                  Employer's products or services, prices offered to or paid by
                  customers, purchase and supply information, current and future
                  development and expansion or contraction plans of Employer,
                  sales and marketing plans and techniques, information
                  concerning personnel assignments and operations of Employer
                  and matters concerning the financial affairs, future plans and
                  management of Employer. "Trade Secrets" shall not include
                  information that has become generally available to the public
                  by the act of one who has the right to disclose such
                  information without violating a legal right of Employer.

                           (ii)     "Confidential Information" means
                  information, other than Trade Secrets, which relates to
                  Employer, Employer's activities, Employer's business or
                  Employer's suppliers or customers that is not generally known
                  by persons not employed by Employer and which is or has been
                  disclosed to Employee or of which Employee became aware as a
                  consequence of or through his relationship to Employer.
                  "Confidential Information" shall not include information that
                  has become generally available to the public by the act of one
                  who has the right to disclose such information without
                  violating any legal right of Employer.

                           (iii)    "Documents" means originals or copies of
                  handbooks, manuals, files, memoranda, correspondence, notes,
                  photographs, slides, overheads, audio or visual tapes,
                  cassettes, or disks, and records maintained on computer or
                  other electronic media.

                  (b)      Covenant Regarding Non-disclosure of Trade Secrets or
                           Confidential Information.

                  Employee covenants and agrees that: (i) during his employment
                  with Employer he will not use or disclose any Trade Secrets or
                  Confidential Information of Employer other than as necessary
                  in connection with the performance of his duties as an
                  employee of Employer; and (ii) for a period of two (2) years
                  immediately following the termination of his employment with
                  Employer, Employee shall not, directly or indirectly, transmit
                  or disclose any Trade Secret or Confidential Information of
                  Employer to any person and shall not make use of any such
                  Trade Secret or Confidential Information, directly or
                  indirectly, for himself or others, without the prior written
                  consent of Employer, except for a disclosure that

                                      -4-
<PAGE>   5

                  is required by any law or order, in which case Employee shall
                  provide Employer prior written notice of such requirement and
                  an opportunity to contest such disclosure. However, to the
                  extent that such information is a "trade secret" as that term
                  is defined under a state or federal law, this subparagraph is
                  not intended to, and does not, limit Employer's rights or
                  remedies thereunder and the time period for prohibition on
                  disclosure or use of such information is until such
                  information becomes generally known to the public through the
                  act of one who has the right to disclose such information
                  without violating a legal right of Employer.

                  (c)      Return of Information.

                  Employee agrees that he shall return all Trade Secrets,
                  Confidential Information or other property of Employer
                  immediately upon the termination of his employment with
                  Employer, including all handbooks, training materials,
                  reports, policy statements, programs, customer lists, mailing
                  lists and other documents provided by Employer or acquired by
                  Employee as a result of his employment with Employer, and all
                  copies thereof.

8.       Inventions and Other Developments.

         All inventions, formulas, techniques, processes, concepts, systems and
programs, mailing lists and customer lists and compilations, whether or not
patented or patentable, or subject to copyright, made or conceived, individually
or in conjunction with others, by Employee during the term of his employment
with Employer that relate to activities or proposed activities of Employer or
that result from work performed by Employee for Employer are the sole and
exclusive property of Employer. Employee further agrees that upon request by
Employer, he will assign title to any such inventions, formulas, techniques,
processes, concepts, systems and programs, and lists and compilations to
Employer and will sign any and all documents necessary to effect such
assignment.

9.       Non-recruitment of Employees Covenant.

         Employee agrees that he will not, for so long as he is employed by
Employer, and for a period of two (2) years immediately following the
termination of his employment, solicit or induce, or attempt to solicit or
induce, any employee of the Employer to terminate his or her relationship with
Employer or to enter into an employment or agency relationship with Employee or
with any other person or entity other than Employer.

10.      Covenant Not to Compete.

         Employee expressly covenants and agrees that during the term of his
employment with Employer and for a period of two (2) years immediately following
the termination of said employment for any reason, he will not, directly or
indirectly, seek, obtain or accept a "Competitive Position" in the "Restricted
Territory" with a "Competitor" of Employer.

                                      -5-
<PAGE>   6

For purposes of this Agreement, a "Competitor" of Employer is any business,
individual, partnership, joint venture, association, firm, corporation or other
entity engaged, wholly or in part, in the production, publishing or distribution
of Christian books, spoken word audio and video products, and any other spoken
or written word text based Christian products; a "Competitive Position" is any
employment with a "Competitor" of Employer in a position in which Employee will
use or is likely to use any Confidential Information or Trade Secrets (as those
terms are defined in Paragraph 7 of this Agreement), or in which Employee will
have direct or indirect responsibility for, or supervision of, any position for
such Competitor which is the same or substantially similar to any position of
Employer over which Employee had direct or indirect responsibility or
supervisory authority; and "Restricted Territory" is the geographical area set
forth in Exhibit B to this Agreement. Nothing contained in this Paragraph is
intended to prevent Employee from investing in stock or other securities listed
on a national securities exchange or actively traded on the over the counter
market of any Competitor; provided, however, that Employee shall not hold more
than a total of five percent (5%) of all issued and outstanding stock or other
securities of any such corporation.

11.      Relief.

         Employee acknowledges and agrees: that the Company is in the business
of producing, publishing and distributing Christian books, spoken word audio and
video products and other spoken or written word (text based) Christian products
on a nationwide basis; and that by virtue of his employment, Employee will
receive access to the Company's Trade Secrets, Confidential Information,
training and experience; and that in his position as President and Chief
Executive Officer of the Publishing Division, Employee will be responsible for
all aspects of the product development, marketing and sales, purchasing and
inventory management, strategic planning, annual budgeting and related
activities of the Publishing Division; and that Employee will be directly or
indirectly involved in business relationships with all of the customers and
clients of the Publishing Division. As a consequence of the foregoing, Employee
acknowledges that great loss and irreparable harm and damage would be suffered
by the Company in the event of breach by him of the terms of this Agreement.

         Employee acknowledges that the covenants and promises contained in this
Agreement are reasonable and necessary means of protecting and preserving
Employer's goodwill and its interest in the confidentiality and proprietary
value of its Trade Secrets and Confidential Information. Employee further
acknowledges that the same are reasonable and necessary means of protecting
Employer from unfair competition by Employee. Employee agrees that any breach of
the covenants or promises contained in paragraphs 7, 8, 9 or 10 will leave
Employer with no adequate remedy at law and may cause Employer to suffer
irreparable damage and injury. Employee further agrees that any breach of these
covenants or promises will entitle Employer to injunctive relief in any court of
competent jurisdiction without the necessity of posting any bond. Employee also
agrees that any such injunctive relief shall be in addition to any damages that
may be recoverable by Employer as a result of such breach. Employer agrees that
Employee will

                                      -6-
<PAGE>   7

be entitled to seek a declaratory judgment as to the enforceability of any of
the covenants or promises contained in paragraphs 7, 8, 9 or 10.

         Employee further agrees that no failure or delay by Employer in
exercising, enforcing or asserting any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any other or further exercise of any such right, power or privilege.

12.      Severability.

         The covenants and other provisions set forth in this Agreement shall be
considered and construed as separate and independent covenants and provisions.
Should any covenant or provision, or any part thereof, be held invalid, void or
unenforceable in any court of competent jurisdiction, such invalidity, voidness
or unenforceability shall not render invalid, void or unenforceable any other
part, covenant or provision of this Agreement. If any portion of the foregoing
covenants or provisions is found to be invalid or unenforceable by a court of
competent jurisdiction because its duration, territory, definition of activities
or definition of information covered is invalid or unreasonable in scope, the
invalid or unreasonable term shall be eliminated, redefined, or replaced with a
new enforceable term such that the intent of Employer and Employee in agreeing
to the covenants and provisions of this Agreement will not be impaired and the
covenant or provision in question shall be enforceable to the fullest extent of
the applicable laws.

13.      Disputes and Governing Law.

         Employer and Employee agree that, except as provided in paragraph 11
hereof, any dispute arising in connection with, or relating to, this Agreement
or the termination of this Agreement, to the maximum extent allowable by
applicable law, shall be subject to resolution through informal methods and,
failing such efforts, through arbitration. Either party may notify the other
party of the existence of a dispute by written notice. The parties shall
thereafter attempt in good faith to resolve their differences within the thirty
(30) days after the receipt of such notice. If the dispute cannot be resolved
within the thirty (30) day period, either party may file a written demand for
arbitration with the other party. The arbitration shall proceed in accordance
with the terms of the Federal Arbitration Act and the rules and procedures of
the American Arbitration Association. The parties will attempt to choose an
arbitrator acceptable to the Employer and Employee, but if agreement on an
arbitrator cannot be reached within ten (10) days after either party files a
written demand for arbitration, a single arbitrator shall be appointed through
the American Arbitration Association's procedures to resolve the dispute.

         Employer and Employee agree that in the event that arbitration is
necessary, the arbitrator shall apply the substantive laws of the state of
Tennessee and any applicable federal law. The place for the arbitration shall be
Mobile, Alabama.

                                      -7-
<PAGE>   8

         The award of the arbitrator shall be binding and conclusive upon the
parties. Either party shall have the right to have the award made the judgment
of a court of competent jurisdiction in the state of Alabama.

14.      Assignment.

         This Agreement may not be assigned by Employee to any other person or
entity but may be assigned by Employer at its discretion to any successor to
all, or any part, of the stock or assets of Employer or to any lender of
Employer.

15.      Titles.

         The titles, headings and captions used in this Agreement are for
convenience of reference only and shall in no way limit, define, expand, or
otherwise affect the meaning or construction of any provision of this Agreement.

16.      Entire Agreement.

         This Agreement is intended by the Parties hereto to be the final
expression of their agreement with respect to the subject matter hereof and
represents the complete and exclusive statement of the terms of their agreement,
notwithstanding any representations, statements or agreements to the contrary
heretofore made. Except as expressly noted herein, this Agreement supersedes any
former agreements between the Parties governing the same subject matter. This
Agreement may be modified only by a written instrument signed by each of the
Parties hereto.

         IN WITNESS WHEREOF, the undersigned set their hands and seals as of the
1st day of June, 2001.

INTEGRITY INCORPORATED                           BYRON WILLIAMSON

/s/  P. Michael Coleman                          /s/ Byron Williamson    [SEAL]
-----------------------------                    -------------------------------
NAME:  P. Michael Coleman
TITLE: President

ATTEST:

/s/ Donald L. Ellington
-----------------------------
Secretary

[CORPORATE SEAL]

                                      -8-
<PAGE>   9

                                    EXHIBIT B

         "Restricted Territory" shall mean the United States of America.

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