Document:

Exhibit 10.7
                                AMERICAN FEDERAL
                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

         THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is made
and entered into as of the 15th day of October, 1999 by and between American
Federal Bank, FSB, a federal stock savings bank ("American Federal"), and
William L. Abercrombie, Jr. (hereinafter "Executive").

                                   BACKGROUND
                                   ----------

         Executive is the Chief Executive Officer of American Federal, a
subsidiary of CCB Financial Corporation, a North Carolina corporation ("CCB"),
pursuant to an Employment Agreement, dated July 31, 1997 (the "Prior
Agreement"). CCB and Executive have entered into an Amended and Restated
Employment Agreement as of October 15, 1999 which governs the terms of
Executive's employment with CCB and certain of its affiliates (the "CCB
Agreement") and Executive desires to amend and restate the Prior Agreement in
the form of this Agreement.

         NOW THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

         1. Effective Date. The effective date of this Agreement is October 15,
1999.

         2. Employment. Executive will serve during the term of this Agreement
as the President and Chief Executive Officer of American Federal; provided,
however, that upon the merger of American Federal into Central Carolina Bank and
Trust Company, a CCB subsidiary ("CCB Bank"), Executive become an Executive Vice
President of CCB Bank. All references herein to American Federal shall be deemed
references to CCB Bank after the effectiveness of such merger. Executive's
responsibilities to American Federal under this Agreement shall be in accordance
with the policies and objectives established form time to time by the Board of
Directors of American Federal or, after the aforesaid merger, the Board of
Directors of CCB Bank.

         3. Employment Period. The term of this Agreement will be concurrent
with the term of the CCB Agreement (the "Employment Period"), unless earlier
terminated in accordance with Section 6 hereof.

         4. Extent of Services. During the Employment Period, and excluding any
periods of vacation and sick leave to which Executive is entitle, Executive
agrees to devote his business time, attention, skill and efforts to the faithful
performance of his duties hereunder and under the CCB Agreement; provided,
however, Executive may engage in such incidental activities as are permitted
under the CCB Agreement.

<PAGE>

         5. Compensation and Benefits. During the Employment Period, Executive's
compensation and benefits for service to American Federal will be provided by
CCB in accordance with the terms of Section 5 of the CCB Agreement, which terms
are incorporated herein by reference.

         6. Termination of Employment. Executive's employment with American
Federal under this Agreement will terminate (i) under the same circumstances as,
(ii) simultaneously with, and (iii) with the same consequences as, the
termination of his employment with CCB under the terms of Sections 6, 7, and 8
of the CCB Agreement, which terms are incorporated herein by reference. Any
termination benefits shall be payable only once (i.e. not under both
Agreements). Notwithstanding the above the Board of Directors of American
Federal may terminate Executive's employment hereunder at any time, but any such
termination shall not prejudice Executive's right to compensation or other
benefits under this Agreement or the CCB Agreement.

         7. Regulatory Intervention . Notwithstanding anything in this Agreement
to the contrary, this Agreement is subject to the following terms and
conditions:

                  (a) If Executive is suspended and/or temporarily prohibited
form participating in the conduct of American Federal's affairs by a notice
served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1818 (e)(3) and (g) (1)), American Federal's obligations hereunder shall
be suspended as of the date of service unless stayed by appropriate proceedings.
If the charges in the notice are dismissed, American Federal shall (i) pay
Executive all or part of the compensatio withheld while American Federal's
contract obligations were suspended, and (ii) reinstate any of American
Federal's obligation which were suspended.

                  (b) If Executive is removed and/or permanently prohibited from
participating in the conduct of American Federal's affairs by an order issued
under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1818 (e)(4) and (g)(1)), all obligations of American Federal under this
Agreement shall terminate as of the effective date of the order, but vested
rights of the parties shall not be affected.

                  (c) If American Federal is in default (as defined in Section
3(x)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818 (e)(4) and (g)
(1)), all obligations under this Agreement shall terminate as of the effective
date of the order, but vested rights of the parties shall not be affected.

                  (d) All obligations under this Agreement shall be terminated,
except to the extent determined that continuation of the contract is necessary
for the continued operation of American Federal (i) by the Office of Thrift
Supervision ("OTS") at the time the Federal Deposit Insurance Corporation
("FDIC") enters into an agreement to provide assistance to or on behalf of
American Federal under the authority contained in Section 13(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1823 (c)); or )ii) by the OTS at the time the
OTS approves a supervisory merger to resolve problems related to the operation
of American Federal or when American Federal is determined by the OTS to be in
an unsafe or unsound condition. Any rights of Executive that shall have vested
under this Agreement shall not be affected by such action.

                  (e) With regard to the provisions of this Section 7(a) through
(d):

<PAGE>

                           (i)    American Federal agrees to use its best
                                  efforts to oppose any such notice of charges
                                  as to which there are reasonable defenses;

                           (ii)   In the event the notice of charges is
                                  dismissed or otherwise resolved in a manner
                                  that will permit American Federal to resume
                                  its obligation to pay compensation hereunder,
                                  American Federal will promptly make such
                                  payment hereunder; and

                           (iii)  During the period of suspension, the vested
                                  rights of the contracting parties shall not be
                                  affected except to the extent precluded by
                                  such notice.

                  (f) American Federal's obligations to provide compensation or
other benefits to Executive under this Agreement shall be terminated or limited
to the extent required by the provisions of any final regulation or order of the
Federal Deposit Insurance Corporation promulgated under Section 18(k) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(k)) limiting or prohibiting any
"golden parachute payment" as defined therein, but only to the extent that the
compensation or payments to be provided under this Agreement are so prohibited
or limited.

         8. Legal Expenses. To the extent not paid by CCB under the CCB
Agreement, American Federal agrees to pay as incurred to the full extent
permitted by law, all legal fees and expenses which Executive may reasonably
incur as a result of any contest (to the extent that Executive is successful, in
whole or in part, in such contest) by American Federal, Executive or others of
the validity or enforce ability of, or liability under, any provision of this
Agreement or any guarantee of performance thereof (including as a result of any
contest by Executive about the amount of any payment pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable
federal rate provided for in Section 7872(f)(2)(A) of the Internal Revenue Code
of 1986, as amended.

         9.       Assignment and Successors.

                  (a) Executive. This Agreement is personal to Executive and
without the prior written consent of American Federal shall not be assignable by
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and enforceable by Executive's legal
representatives.

                  (b) American Federal. This Agreement shall inure to the
benefit of and be binding upon American Federal and its successors and assigns.
American Federal will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of American Federal to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that American
Federal would be required to perform it if no such succession had taken place.
As used in this Agreement, "American Federal" shall mean American Federal as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of law
or otherwise.
<PAGE>

         10.      Miscellaneous.

                  (a) No Mitigation. Executive shall not be required to mitigate
the amount of any payment provided for in this Agreement by seeking other
employment or otherwise and no such payment shall be offset or reduced by the
amount of any compensation or benefits provided to Executive in any subsequent
employment.

                  (b) Waiver. Failure of either party to insist, in one or more
instances, on performance by the other in strict accordance with the terms and
conditions of this Agreement shall not be deemed a waiver or relinquishment of
any right granted in this Agreement or of the future performance of any such
term or condition or of any other term or condition of this Agreement, unless
such waiver is contained in a writing signed by the party making the waiver.

                  (c) Severability. If any provision or covenant, or any part
thereof, of this Agreement should be held by any court to be invalid, illegal or
unenforceable, either in whole or in part, such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of
the remaining provisions or covenants, or any part thereof, of this Agreement,
all of which shall remain in full force and effect.

                  (d) Other Agents. Nothing in this Agreement is to be
interpreted as limiting American Federal from employing other personnel on such
terms and conditions as may be satisfactory to it.

                  (e) Entire Agreement. Except as provided herein, this
Agreement and the CCB Agreement contain the entire agreement between American
Federal and Executive with respect to the subject matter hereof and such
Agreements supersede and invalidate any previous agreements or contracts
including employment agreements by and between American Federal and Executive.
No representations, inducements, promises or agreements, oral or otherwise,
which are not embodied herein or in the CCB Agreement, shall be of any force or
effect.

                  (f) Governing Law. Except to the extent preempted by federal
law, the laws of the State of North Carolina shall govern this Agreement in all
respects, whether as to its validity, construction, capacity, performance or
otherwise.

                  (g) Notices. All notices, requests, demands and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given if delivered or seven days after mailing if
mailed, first class, certified mail, postage prepaid:

<PAGE>

   To American Federal: American Federal Bank, FSB
                                 300 East McBee Avenue
                                 Greenville, South Carolina 29601
                                 Facsimile No.:  (864) 255-7504
                                 Attention:  Chairman of the Board of Directors

   To Executive:                 William L. Abercrombie, Jr.
                                 300 East McBee Avenue
                                 Greenville, South Carolina 29601
                                 Facsimile No.:  (864) 255-7504

Any party may change the address to which notices, requests, demands and other
communications shall be delivered or mailed by giving notice thereof to the
other party in the same manner provided herein.

                  (h) Amendments and Modifications. This Agreement may be
amended or modified only by a writing signed by both parties hereto, which makes
specific reference to this Agreement.

                            (Signatures on next page)

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Amended and Restated Employment Agreement as of the date first above
written.

                                       AMERICAN FEDERAL BANK, FSB

                                       By:  /s/ ERNEST C. ROESSLER
                                            ----------------------
                                                Ernest C. Roessler, Director

                                       EXECUTIVE:

                                       /s/ WILLIAM L. ABERCROMBIE, JR.
                                       -------------------------------
                                       William L. Abercrombie, Jr.

Acknowledged and agreed to:

                                       CCB FINANCIAL CORPORATION

                                       By:  /s/ ERNEST C. ROESSLER
                                            ----------------------
                                                 Ernest C. Roessler
                                                 Chairman, President and
                                                 Chief Executive OfficerEMPLOYEE DEATH BENEFIT AND POST-RETIREMENT NONCOMPETITION
                          AND CONSULTATION AGREEMENT

            THIS AGREEMENT, made and entered into and effective as of the 22nd
day of January, 1996, by and between FIRST-CITIZENS BANK & TRUST COMPANY, a
North Carolina banking corporation with its principal office in Raleigh, Wake
County, North Carolina (hereinafter referred to as "Employer"); and JOSEPH A.
COOPER, JR., an employee of Employer, who is currently serving as a Group Vice
President (hereinafter referred to as "Employee");

                             W I T N E S S E T H:

            WHEREAS, Employee has provided guidance, leadership and
direction in the growth, management and development of Employer, during which
time Employee has learned trade secrets, confidential procedures and
information, and technical and sensitive plans of Employer; and,

            WHEREAS, Employer values the efforts, abilities and accomplishments
of Employee as an important member of management and desires to continue to have
Employee's experience and knowledge available to it following Employee's
retirement from employment with Employer; and,

            WHEREAS, Employer desires to limit Employee's availability to other
employers or entities which are in competition with Employer following
Employee's retirement from employment with Employer; and,

            WHEREAS, Employer, as part of a plan adopted for a class of
employees of Employer, has offered to Employee a noncompetition arrangement
together with a limited, when-called, independent contractor consultation
service arrangement and a death benefit arrangement for Employee's designated
beneficiary or Estate, as applicable, and the parties hereto have reached an
agreement concerning the independent contractor consulting relationship, the
noncompetition arrangement, the death benefit arrangement and other

                                       53
<PAGE>
matters contained herein and desire to set forth the terms and conditions
thereof.
            NOW, THEREFORE, for and in consideration of the mutual promises and
undertakings herein set forth, the parties hereto do agree as follows:

            1. RETIREMENT DATE. The term "Retirement Date," as used herein,
shall be defined for purposes of this Agreement as the last day of the calendar
month in which Employee attains the age of sixty-five (65) or as such date prior
or subsequent thereto as shall be agreed upon between Employer and Employee.

                  Employer and Employee hereby acknowledge that compulsory
retirement is not enforceable except as provided by law. Employer and Employee
further agree that no provision herein shall be construed as requiring
Employee's retirement except as may now or hereafter be permitted by law;
however, Employee acknowledges Employer's continuing policy, in an effort to
provide opportunities and continuity, to encourage retirement at age sixty-five
(65) and to require retirement at age sixty-five (65) where permissible by law.

            2. DEATH BENEFITS. In the event Employee dies while employed by
Employer prior to Employee's Retirement Date, Employer will pay the sum of
Fifty-Seven Thousand Three Hundred Forty-Eight and 72/100 Dollars ($57,348.72)
per year, payable in monthly installments of Four Thousand Seven Hundred
Seventy-Nine and 06/100 Dollars ($4,779.06), for a period of ten (10) years, to
such individual or individuals as Employee shall have designated in writing
filed with Employer or, in the absence of such designation, to the Estate of
Employee. The first payment shall be made not later than two (2) months
following Employee's death. Payments hereunder shall be payable each month
without deductions and the recipient shall be solely responsible for the payment
of all income and other taxes and assessments applicable on said payments.

                                       54
<PAGE>
            3. CONSULTATION PAYMENTS. In the event Employee retires from
employment on Employee's Retirement Date, Employee shall be paid by Employer the
sum of One Thousand One Hundred Ninety-Four and 76/100 Dollars ($1,194.76) per
month, beginning not later than two (2) months after Employee's Retirement Date,
for a period of ten (10) years following Employee's Retirement Date or until
death, whichever first occurs. Such monthly payments shall be paid for and in
consideration of Employee's Consultation Services, as provided herein; such sum
to be payable to Employee whether or not Employee's Consultation Services have
been utilized by Employer. Consultation Payments hereunder shall be payable each
month without deductions and Employee agrees to be solely responsible for the
payment of all income and other taxes out of said funds and all Social Security,
self-employment and any other taxes or assessments, if any, applicable on said
compensation.

                  For and in consideration of said monthly Consultation Payments
to Employee, Employee will provide support, sponsorship, advisory and
Consultation Services as an independent contractor to Employer, as and when
Employer may request, which services may be provided with respect to all phases
of Employer's business and particularly those phases in which Employee has
particular expertise and knowledge. Employee's services shall be limited to
those of an independent consultant, shall not be on a day-to-day regularly
scheduled operational basis and shall be provided only when Employee is
reasonably available and willing. Employer shall make available to Employee such
office space and equipment as are reasonably necessary for Employee to carry out
the obligations under this Agreement and shall reimburse Employee for any
extraordinary expenses incurred in carrying out the obligations hereunder.

                  Effective as of Employee's Retirement Date, Employee and
Employer agree that Employee shall be, under the terms of this

                                       55
<PAGE>
Agreement, an independent contractor, and Employee agrees that his rights and
privileges and his obligations are as provided in this Agreement as to matters
covered herein.

                  If Employee should die during said ten (10) year period,
payments under this Paragraph shall terminate. Future payments, if any, to
Employee's designated beneficiary or Employee's Estate shall be made in
accordance with the provisions of Paragraph 5 of this Agreement.

            4. NONCOMPETITION PAYMENTS. In the event Employee retires from
employment on Employee's Retirement Date, Employee shall be paid by Employer the
sum of Three Thousand Five Hundred Eighty-Four and 30/100 Dollars ($3,584.30)
per month, beginning not later than two (2) months after Employee's Retirement
Date, for a period of ten (10) years following Employee's Retirement Date or
until death, whichever first occurs. Such monthly payments shall be paid for and
in consideration of Employee's Covenant Not To Compete as provided herein.
Noncompetition Payments hereunder shall be payable each month without deductions
and Employee agrees to be solely responsible for the payment of all income or
other taxes or assessments, if any, applicable on said payments.

                  For and in consideration of said monthly Noncompetition
Payments to Employee, Employee agrees that he will not become an officer or
employee of, provide any consultation to nor participate in any manner with any
other entity of any type or description involved in any major element of
business which Employer is performing at Employee's Retirement Date nor will
Employee perform or seek to perform any consultation or other type of work or
service with any other firm, person or entity, directly or indirectly, in any
such business which competes with Employer, whether done directly or indirectly,
in ownership, consultation, employment or otherwise. Employee agrees not to
reveal to outside sources, without the consent of Employer, any matters, the

                                       56
<PAGE>
revealing of which could, in any manner, adversely affect or disclose Employer's
business or any part thereof, unless required by law to do so. This Covenant Not
To Compete by Employee is limited to the geographic area of North Carolina,
shall exist for and during the term of all payments to be made under this
Covenant Not To Compete, whether made directly by Employer or as otherwise
provided herein, and shall not prevent Employee from purchasing or acquiring, as
an investor only, a financial interest of less than five percent (5%) in a
business or other entity which is in competition with Employer.

                  Employee acknowledges that the remedy at law for breach of
Employee's Covenant Not To Compete will be inadequate and that Employer shall be
entitled to injunctive relief as to any violation thereof; however, nothing
herein shall be construed as prohibiting Employer from pursuing any other
remedies available to it, in addition to injunctive relief, whether at law or in
equity, including the recovery of damages. In the event Employee shall breach
any condition of Employee's Covenant Not To Compete, then Employee's right to
any of the payments becoming due under Paragraphs 3 and 4 of this Agreement
after the date of such breach shall be forever forfeited and the right of
Employee's designated beneficiary or Employee's Estate to any payments under
this Agreement shall likewise be forever forfeited. This forfeiture is in
addition to and not in lieu of any of the above-described remedies of Employer
and shall be in addition to any injunctive or other relief as described herein.
Employee further acknowledges that any breach of Employee's Covenant Not To
Compete shall be deemed a material breach of this Agreement.

                  If Employee should die during said ten (10) year period,
payments under this Paragraph shall terminate. Future payments, if any, to
Employee's designated beneficiary or

                                       57
<PAGE>
Employee's Estate shall be made in accordance with the provisions of Paragraph 5
of this Agreement.

            5. CONTINUATION OF PAYMENTS. Upon Employee's death during said ten
(10) year period of payments hereunder, the sum of Four Thousand Seven Hundred
Seventy-Nine and 06/100 Dollars ($4,779.06) per month shall be paid to
Employee's designated beneficiary or Employee's Estate, as applicable, beginning
the first calendar month following the date of Employee's death and continuing
thereafter until the expiration of said ten (10) year period. Once the
Consultation and/or Noncompetition Payments are begun, whether paid by Employer
or as otherwise provided herein, the maximum payment period under this Agreement
is ten (10) years. Payments hereunder shall be payable each month without
deductions and the recipient shall be solely responsible for all income and
other taxes and assessments applicable on said payments.

            6. FORFEITURE OF BENEFITS. This Agreement is subject to termination
by Employer at any time and without stated cause. ln the event Employer shall
terminate this Agreement, Employee shall forfeit all rights to receive any
payment provided for herein. Likewise, in the event Employee does not retire
from employment on Employee's Retirement Date or Employee's employment is
terminated, either voluntarily or involuntarily, for reasons other than death or
retirement, Employee shall forfeit all rights to receive any payment provided
for herein. Employee acknowledges and agrees that any benefit provided for
herein is merely a contractual benefit and that nothing contained herein shall
be construed as conferring upon Employee any vested benefits or any vested
rights to receive any payment provided for herein and that any and all payments
provided for herein shall be subject to a substantial risk of forfeiture until
such time as said payments are actually made by Employer. Employee also
acknowledges that the contractual benefit provided for herein is specifically
conditioned

                                       58
<PAGE>
upon Employee's retirement from employment on Employee's Retirement Date.

            7. CLAIMS PROCEDURE. If any benefits become payable under this
Agreement, Employee (or Employee's beneficiary in the case of Employee's death)
shall file a claim for benefits by notifying Employer orally or in writing. If
the claim is wholly or partially denied, Employer shall provide a written notice
within ninety (90) days specifying the reasons for the denial, any additional
material or information necessary to receive benefits, and the steps to be taken
if a review of the denial is desired.

                  If a claim is denied and a review is desired, Employee (or
Employee's beneficiary in the case of Employee's death) shall notify Employer in
writing within sixty (60) days. In requesting a review, Employee or Employee's
beneficiary may submit any written issues and comments he or she feels are
appropriate. Employer shall then review the claim and provide a written decision
within sixty (60) days. This decision shall state the specific reasons for the
decision and shall include references to specific provisions on which the
decision is based.

            8. ASSIGNMENT OF RIGHTS. Neither Employee nor any designated
beneficiary shall have any right to sell, assign, transfer or otherwise convey
the right to receive any payment hereunder.

            9. PAYMENTS AND FUNDING. Any payments under this Agreement shall be
independent of, and in addition to, those under any other Plan, program or
agreement which may be in effect between the parties hereto, or any other
compensation payable to Employee or Employee's designee by Employer. This
Agreement shall not be construed as a contract of employment nor does it
restrict the right of Employer to discharge Employee at will or the right of
Employee to terminate employment at will.

                                       59
<PAGE>
                  Employer may, in its sole discretion, purchase an insurance
policy on the life of Employee to fund or assist in the funding of this
Agreement. Employee agrees to promptly supply to Employer and its selected or
prospective insurance carrier, upon request, any and all information requested,
in order to enable the insurance carrier to evaluate the risks involved in
providing the insurance requested by Employer. Any and all rights to any and all
benefits under such insurance policy on the life of Employee shall be solely the
property of Employer and all proceeds of such policy shall be payable by the
insurer solely to Employer, as owner of such policy. Employee specifically
waives any rights in any insurance policy on Employee's life owned by Employer
pursuant to this Agreement. Such policy shall not serve in any way as security
to Employee for Employer's performance under this Agreement. The rights accruing
to Employee or any designee hereunder shall be solely those of an unsecured
creditor of Employer and shall be subordinate to the rights of the depositors of
Employer.

                  Employer may, in its sole discretion, discharge its
liabilities under this Agreement to Employee, Employee's designated beneficiary
or Employee's Estate at any time by the purchase of an annuity from a reputable
insurance or similar company authorized to do, and doing, business in North
Carolina and the assignment of the rights under said annuity to the benefit of
Employee, Employee's designated beneficiary or Employee's Estate. If this option
is exercised by Employer, all rights accruing to Employee, Employee's designated
beneficiary or Employee's Estate hereunder shall be governed solely by the
annuity contract and any election made under said annuity contract; and Employer
shall be fully discharged from any further liabilities to Employee, Employee's
designated beneficiary or Employee's Estate under this Agreement.

                  Employer may, in its sole discretion, discharge its
liabilities under this Agreement to Employee, Employee's designated

                                       60
<PAGE>
beneficiary or Employee's Estate at any time by determining the present value of
the payments due hereunder, said amount to be determined by the use of the U.S.
Government bond rate for the nearest year applicable to the time of the payments
due hereunder for the present value computation and once determined, by payment
of said amount in a lump sum to Employee, Employee's designated beneficiary or
Employee's Estate, as applicable.

            10. SUICIDE. In the event Employee commits suicide within two (2)
years of the execution of this Agreement, all payments provided for herein to be
paid to Employee's designated beneficiary or Employee's Estate shall be
forfeited.

            11. BINDING EFFECT. This Agreement shall be binding upon Employee,
his heirs, personal representatives and assigns and upon Employer, its
successors and assigns.

            12. AMENDMENT OF AGREEMENT. This Agreement may not be altered,
amended or revoked except by a written agreement signed by Employer and
Employee.

            13. INTERPRETATION. Where appropriate in this Agreement, words used
in the singular shall include the plural and words used in the masculine shall
include the feminine.

            14. INVALID PROVISION. The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions
hereof, and this Agreement shall be construed in all respects as if such invalid
or unenforceable provision were not contained herein.

            15. GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of North Carolina.

            IN TESTIMONY WHEREOF, Employer has caused this Agreement to be
executed in its corporate name by its Group Vice President, attested by its
Secretary/Assistant Secretary and its corporate seal to be hereto affixed, all
by the authority of its Board of

                                       61
<PAGE>
Directors duly given, and Employee has hereunto set his hand and adopted as his
seal the typewritten word "SEAL" appearing beside his name, as of the day and
year first above written.

                              FIRST-CITIZENS BANK & TRUST COMPANY

                                    /s/ JAMES D. BUCCI
                              By:   ------------------------------------
                                    James D. Bucci, Group Vice President

ATTEST:

/s/ DELORES T. TEEL
------------------------------
    Assistant Secretary

                               /s/ JOSEPH A. COOPER, JR.
                              --------------------------------------(SEAL)
                              Joseph A. Cooper, Jr.

                                       62
<PAGE>
STATE OF NORTH CAROLINA
COUNTY OF WAKE

                        FIRST AMENDMENT OF EMPLOYEE DEATH
                           BENEFIT AND POST-RETIREMENT
                    NONCOMPETITION AND CONSULTATION AGREEMENT

                  THIS FIRST AMENDMENT OF EMPLOYEE DEATH BENEFIT AND
POST-RETIREMENT NONCOMPETITION AND CONSULTATION AGREEMENT ("First Amendment"),
made and entered into and effective as of the 26th day of October, 1998, by and
between FIRST-CITIZENS BANK & TRUST COMPANY, a North Carolina banking
corporation with its principal place of business in Raleigh, Wake County, North
Carolina (hereinafter referred to as "Employer"); and JOSEPH A. COOPER, JR.
(hereinafter referred to as "Employee");

                              W I T N E S S E T H:

                  WHEREAS, in recognition of Employee's contribution to the
growth, management and development of Employer and in order to limit Employee's
availability to other employers or entities in competition with Employer
following Employee's retirement from employment with Employer, Employer and
Employee entered into that certain Employee Death Benefit and Post-Retirement
Noncompetition and Consultation Agreement, dated as of January 22, 1996, which
is incorporated herein by reference (hereinafter referred to as the
"Agreement"), which Agreement was executed pursuant to a benefit plan adopted by
Employer as of January 1, 1986, for a class of senior management employees of
Employer; and,

                  WHEREAS, Employer now desires to enter into Phase V of such
benefit plan, as part of which Employer desires to increase the benefits payable
to Employee as set forth in the Agreement by amending said Agreement pursuant to
Paragraph 12 thereof, such increased benefits to be effective as of the date of
this First Amendment.

                  NOW, THEREFORE, for and in consideration of the mutual
promises and undertakings herein set forth, the parties hereto do agree as
follows:

                                       63
<PAGE>
                  1. Paragraph 2 of the Agreement hereby is deleted in its
entirety and the following replacement Paragraph 2 is inserted in lieu thereof:

                  "2. DEATH BENEFITS. In the event Employee dies while employed
                  by Employer prior to Employee's Retirement Date, Employer will
                  pay the sum of Sixty-Four Thousand Two Hundred Forty-Nine and
                  No/100 Dollars ($64,249.00) per year, payable in monthly
                  installments of Five Thousand Three Hundred Fifty-Four and
                  09/100 Dollars ($5,354.09) for a period of ten (10) years, to
                  such individual or individuals as Employee shall have
                  designated in writing filed with Employer or, in the absence
                  of such designation, to the Estate of Employee. The first
                  payment shall be made not later than two (2) months following
                  Employee's death. Payments hereunder shall be payable each
                  month without deductions and the recipient shall be solely
                  responsible for the payment of all income and other taxes and
                  assessments applicable on said payments."

                  2. The first paragraph of Paragraph 3 of the Agreement hereby
is deleted in its entirety and the following replacement first paragraph of
Paragraph 3 is inserted in lieu thereof:

                  "3. CONSULTATION PAYMENTS. In the event Employee retires from
                  employment on Employee's Retirement Date, Employee shall be
                  paid by Employer the sum of One Thousand Three Hundred
                  Thirty-Eight and 52/100 Dollars ($1,338.52) per month,
                  beginning not later than two (2) months after Employee's
                  Retirement Date, for a period of ten (10) years following
                  Employee's Retirement Date or until death, whichever first
                  occurs. Such monthly payments shall be paid for and in
                  consideration of Employee's Consultation Services, as provided
                  herein; such sum to be payable to Employee whether or not
                  Employee's Consultation Services have been utilized by
                  Employer. Consultation Payments hereunder shall be payable
                  each month without deductions and Employee agrees to be solely
                  responsible for the payment of all income and other taxes out
                  of said funds and all Social Security, self-employment and any
                  other taxes or assessments, if any, applicable on said
                  compensation."

                                       64
<PAGE>
                  3. The first paragraph of Paragraph 4 of the Agreement hereby
is deleted in its entirety and the following replacement first paragraph of
Paragraph 4 is inserted in lieu thereof:

                  "4. NONCOMPETITION PAYMENTS. In the event Employee retires
                  from employment on Employee's Retirement Date, Employee shall
                  be paid by Employer the sum of Four Thousand Fifteen and
                  57/100 Dollars ($4,015.57) per month, beginning not later than
                  two (2) months after Employee's Retirement Date, for a period
                  of ten (10) years following Employee's Retirement Date or
                  until death, whichever first occurs. Such monthly payments
                  shall be paid for and in consideration of Employee's Covenant
                  Not To Compete as provided herein. Noncompetition Payments
                  hereunder shall be payable each month without deductions and
                  Employee agrees to be solely responsible for the payment of
                  all income or other taxes or assessments, if any, applicable
                  on said payments."

                  4. Paragraph 5 of the Agreement hereby is deleted in its
entirety and the following replacement Paragraph 5 is inserted in lieu thereof:

                  "5. CONTINUATION OF PAYMENTS. Upon Employee's death during
                  said ten (10) year period of payments hereunder, the sum of
                  Five Thousand Three Hundred Fifty-Four and 09/100 Dollars
                  ($5,354.09) per month shall be paid to Employee's designated
                  beneficiary or Employee's Estate, as applicable, beginning the
                  first calendar month following the date of Employee's death
                  and continuing thereafter until the expiration of said ten
                  (10) year period. Once the Consultation and/or Noncompetition
                  Payments are begun, whether paid by Employer or as otherwise
                  provided herein, the maximum payment period under this
                  Agreement is ten (10) years. Payments hereunder shall be
                  payable each month without deductions and the recipient shall
                  be solely responsible for all income and other taxes and
                  assessments applicable on said payments."

                  5. All of the remaining terms and conditions of the Agreement
which are not expressly amended by this First Amendment shall remain in full
force and effect.

                                       65
<PAGE>
                  IN TESTIMONY WHEREOF, Employer has caused this First Amendment
to be executed in its corporate name by its Vice Chairman, attested by its
Secretary/Assistant Secretary and its corporate seal to be affixed hereto, all
within the authority duly given by its Board of Directors, and Employee has
hereunto set his hand and adopted as his seal the typewritten word "SEAL"
appearing beside his name, as of the day and year first above written.

                                       FIRST-CITIZENS BANK & TRUST COMPANY

                                       By:  /s/ JAMES B. HYLER, JR.
                                          ------------------------------------
                                            James B. Hyler, Jr., Vice Chairman

Attest:

/s/ ALEXANDER G. MACFADYEN, JR.
-------------------------------
         Secretary

                                       /s/ JOSEPH A. COOPER, JR. (SEAL)
                                       --------------------------
                                       Joseph A. Cooper, Jr.

                                       66

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