Document:

<PAGE>

                                                                   Exhibit 10.48
                                                                   -------------

                       EMPLOYMENT CONTINUATION AGREEMENT
                       ---------------------------------

     THIS AGREEMENT between ALABAMA NATIONAL BANCORPORATION, a Delaware
corporation (the "Company"), and DAN M. DAVID (the "Executive"), is dated as of
this 21/st/ day of September, 2000.

                             W I T N E S S E T H :

     WHEREAS, the Company has employed the Executive in a key executive officer
position and has determined that the Executive holds a position which is of
critical importance to the Company;

     WHEREAS, the Company believes that, in the event it is confronted with a
situation that could result in a change in ownership or control of the Company,
continuity of management will be essential to its ability to evaluate and
respond to such situation in the best interests of stockholders;

     WHEREAS, the Company understands that any such situation will present
significant concerns for the Executive with respect to his financial and job
security;

     WHEREAS, the Company desires to assure itself of the Executive's services
during any period in which it is confronting such a situation and to provide the
Executive with certain financial assurances to enable the Executive to perform
the responsibilities of his position without undue distraction and to exercise
his judgment without bias due to his personal circumstances;

     WHEREAS, to achieve these objectives, the Company and the Executive desire
to enter into an agreement providing the Company and the Executive with certain
rights and obligations upon the occurrence of a Change of Control (as defined in
Section 2 below);

     NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is hereby agreed by and between the Company and the
Executive as follows:

     SECTION 1.  Operation of Agreement.
                 ----------------------

     (a) Effective Date.  The effective date of this Agreement shall be the date
         --------------
on which a Change of Control occurs (the "Change of Control Date"); provided,
however, that if the Executive is not employed by the Company on the Change of
Control Date, this Agreement shall be void and without effect.

     SECTION 2.   Definitions.
                  -----------

     (a) Average Closing Price.  "Average Closing Price" shall mean the average
         ---------------------
of the daily closing prices for a share of the Company's common stock, for the
twenty (20) trading days preceding the Change of Control Date, on the Composite
Tape for the New York Stock Exchange -- Listed Stocks, or, if the common stock
is not listed on such Exchange, on the principal United States securities
exchange registered under the Securities Exchange Act of 1934, as amended, on
which the common stock is listed, or, if the common stock is not listed on any
such Exchange, the average of the daily closing bid quotations with respect to a
share of the common stock for such twenty (20) trading days on the National
Association of Securities Dealers, Inc. Automated Quotations Systems or any
system then in use.

     (b) Award.  "Award" shall have the meaning ascribed to such term in the
         -----
Performance Share Plan.

     (c) Award Period.  "Award Period" shall have the meaning ascribed to such
         ------------
term in the Performance Share Plan.
<PAGE>

     (d)  Beneficial Owner.  For purposes of this Agreement, "Beneficial Owner"
          ----------------
shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules
and Regulations under the Securities Exchange Act of 1934, as amended (the
"Exchange Act").

     (e)  Change of Control.  For the purposes of this Agreement, a "Change of
          -----------------
Control" shall mean:

          (i)   any Person (other than those Persons in control of the Company
     as of the date of this Agreement, or other than a trustee or other
     fiduciary holding securities under an employee benefit plan of the Company,
     or a corporation owned directly or indirectly by the stockholders of the
     Company in substantially the same proportions as their ownership of stock
     of the Company) becomes the Beneficial Owner, directly or indirectly, of
     securities of the Company representing twenty percent (20%) or more of the
     combined voting power of the Company's then outstanding securities; or

          (ii)  upon the consummation of any merger, consolidation, or similar
     transaction or a purchase of securities pursuant to which (x) the members
     of the Board of Directors of the Company immediately prior to such
     transaction do not, immediately after the transaction, constitute a
     majority of the Board of Directors of the surviving entity or (y) the
     stockholders of the Company immediately preceding the transaction do not,
     immediately after the transaction, own at least 50% of the combined voting
     power of the outstanding securities of the surviving entity; or

          (iii) a sale, lease, exchange or other transfer (in one transaction or
     a series of related transactions) of all or substantially all of the assets
     of the Company.

     (f)  Change of Control Price.  "Change of Control Price" shall have the
          -----------------------
meaning ascribed to such term in the Performance Share Plan.

     (g)  Performance Share. "Performance Share" shall have the meaning ascribed
          -----------------
to such term in the Performance Share Plan.

     (h)  Performance Share Plan.  "Performance Share Plan " means that certain
          ----------------------
Second Amendment and Restatement of the Alabama National BanCorporation
Performance Share Plan, effective as of April 20, 2000, as such Plan may be
amended from time to time.

     (i)  Person.  "Person" shall have the meaning ascribed to such term in
          ------
Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
thereof, including a "group" as defined in Section 13(d).

     (j)  Potential Change of Control.  For the purposes of this Agreement, a
          ---------------------------
Potential Change of Control shall be deemed to have occurred if:

          (i)   the Company enters into an agreement, the consummation of which
     would result in the occurrence of a Change of Control;

          (ii)  any Person publicly announces an intention to take or to
     consider taking actions which, if consummated, would constitute a Change of
     Control;

          (iii) any Person (other than those Persons in control of the Company
     as of the date of this Agreement, or other than a trustee or other
     fiduciary holding securities under an employee benefit plan of the Company,
     or a corporation owned directly or indirectly by the stockholders of the
     Company in substantially the same proportions as their ownership of stock
     of the Company) hereafter becomes the Beneficial Owner, directly or
     indirectly, of securities of the Company representing greater than 10% of
     the combined voting power of the Company's then outstanding securities
     (determined by taking into account as though converted or exercised any
     securities convertible into voting securities or any options exercisable
     for voting securities, but only to the extent such convertible securities
     or options are beneficially owned or held by such Person);

                                      -2-
<PAGE>

          (iv) any Person files soliciting materials intended to result in a
     change in the composition of the Board of Directors of the Company; or

          (v)  the Board of Directors of the Company adopts a resolution to the
     effect that, for purposes of this Agreement, a Potential Change of Control
     has occurred.

     SECTION 3. Events upon Change of Control.
                -----------------------------

     (a)  Employment Period. Subject to Section 6 of this Agreement, the Company
          -----------------
agrees to continue the Executive in its employ, and the Executive agrees to
remain in the employ of the Company, for the period (the "Employment Period")
commencing on the Change of Control Date and ending on the second anniversary of
the Change of Control Date.

     (b)  Vesting and Related Rights.  Notwithstanding anything to the contrary
          --------------------------
in this Agreement, in any other agreement between the Executive and the Company
or in any Company plan or elsewhere:

          (i)  upon the Change of Control Date, all of the Executive's options
     to purchase common stock or other securities of the Company shall
     immediately become exercisable in full, and such options may thereafter be
     exercised, in whole or in part, until the expiration of the applicable
     option term; if the Executive dies within such period, any unexercised
     option held by the Executive shall thereafter be exercisable, in whole or
     in part, for the remainder of such period. All other terms and conditions
     with respect to such options, including the price, term and treatment upon
     termination of employment, shall continue to be governed by the applicable
     Company plan(s) and stock option agreement(s) between the Executive and the
     Company, as such may be amended from time to time; and

          (ii) the Executive shall be deemed to have earned Performance Shares
     with respect to each of his Awards outstanding at the Change of Control
     Date.  The number of Performance Shares so earned shall be computed by
     determining  (based on the conditions set by the Compensation Committee of
     the Company's Board for payment of Awards for the subject Award Period) the
     number of Performance Shares that would have been paid if each subject
     Award Period had ended on the December 31st immediately preceding the
     Change of Control Date; provided that in no event shall the number of
     Performance  Shares earned be less than the aggregate number of Performance
     Shares at the target performance  level (as identified  in the applicable
     award letter) with respect to all such Awards.  Thus, in the event of a
     Change of Control, the minimum Performance Shares to be awarded shall be
     equal to the aggregate number of Performance Shares that would have been
     awarded at the end of the Award Period(s) if the target performance
     level(s) applicable thereto had been met.  Performance Share Awards granted
     in the year of the Change of Control  shall be earned at the same
     percentage as Awards granted in the year preceding the year of the Change
     of Control.  Each Performance Share so earned shall be canceled in exchange
     for an  immediate payment in cash of an amount equal to the Change of
     Control Price.  In addition, upon the cash payment provided for in the
     preceding sentence, the Company agrees to pay a cash bonus to the Executive
     in an amount equal to the aggregate amount of the federal and state income
     taxes that will be incurred by the Executive, based on the highest marginal
     income tax rates, as a result of (A) the cash payment provided for in the
     preceding sentence and (B) the cash bonus made pursuant to this sentence.

     SECTION 4. Position and Duties.
                -------------------

     (a)  No Reduction in Position.  During the Employment Period, the
          ------------------------
Executive's position (including titles), authority and responsibilities shall be
at least commensurate with those held, exercised and assigned immediately prior
to the public announcement of the transaction constituting the Change of
Control.  The Executive's services shall be performed at the location where the
Executive was employed immediately preceding the public announcement of the
transaction constituting the Change of Control.

     (b)  Business Time.  From and after the Change of Control Date, the
          -------------
Executive agrees to devote his full attention during normal business hours to
the business and affairs of the Company and to perform faithfully and

                                      -3-
<PAGE>

efficiently the responsibilities assigned to him hereunder, to the extent
necessary to discharge such responsibilities, except for periods of vacation,
sick leave and other leave to which he is entitled.  It is expressly understood
and agreed that the Executive's continuing service on any boards and committees
on which he is serving or with which he is otherwise associated immediately
preceding the Change of Control Date shall not be deemed to interfere with the
performance of the Executive's services to the Company.

     SECTION 5. Compensation.
                ------------

     (a)  Base Salary. During the Employment Period, the Executive shall receive
          -----------
a base salary at a monthly rate at least equal to the monthly salary paid to the
Executive by the Company immediately prior to the Change of Control Date. The
base salary shall be reviewed at least once each year after the Change of
Control Date, and may be increased (but not decreased) at any time and from time
to time by action of the Board of Directors or any committee thereof or any
individual having authority to take such action in accordance with the Company's
regular practices. The Executive's base salary, as it may be increased from time
to time, shall hereafter be referred to as "Base Salary". Neither the Base
Salary nor any increase in Base Salary after the Change of Control Date shall
serve to limit or reduce any other obligation of the Company hereunder.

     (b)  Annual Bonus and Incentive Compensation. During the Employment Period,
          ---------------------------------------
in addition to the Base Salary, for each fiscal year of the Company ending
during the Employment Period, the Executive shall be entitled to receive:

          (i)  an annual bonus which is at least equal to the greater of (A) the
     highest annual bonus, including without limitation any bonus provided under
     the Company's Annual Incentive Plan, that had been payable to the Executive
     in respect of either of the last two fiscal years ended immediately prior
     to the Change of Control Date or (B) the amount that would have been
     payable to the Executive as a target bonus for the year in which the Change
     of Control occurs under the Company's Annual Incentive Plan; and

          (ii) long-term incentive compensation opportunities (including but not
     limited to Performance Share Awards) on terms and conditions no less
     favorable to the Executive than those applicable to the Executive prior to
     the Change of Control Date.

Any amount payable hereunder as an annual bonus shall be paid as soon as
practicable following the year for which the amount is payable, unless
electively deferred by the Executive pursuant to any deferral programs or
arrangements that the Company may make available to the Executive.

     (c)  Benefit Plans.  During the Employment Period, the Executive (and, to
          -------------
the extent applicable, his dependents) shall be entitled to participate in or be
covered under all pension, retirement, deferred compensation, savings, medical,
dental, health, disability, group life, accidental death and travel accident
insurance plans at a level that is commensurate with the Executive's
participation in such plans immediately prior to the Change of Control Date, or,
if more favorable to the Executive, at the level made available to the Executive
or other similarly situated officers at any time thereafter.  The Executive
shall also be entitled to receive such perquisites as were generally provided to
the Executive in accordance with the Company's policies and practices
immediately prior to the Change of Control Date.

     (d)  Expenses.  During the Employment Period, the Executive shall be
          --------
entitled to receive prompt reimbursement for all reasonable expenses incurred by
the Executive in accordance with the policies and procedures of the Company as
in effect immediately prior to the Change of Control Date.  Notwithstanding the
foregoing, the Company may apply the policies and procedures in effect after the
Change of Control Date to the Executive, if such policies and procedures are
more favorable to the Executive than those in effect immediately prior to the
Change of Control Date.

     (e)  Indemnification.  During and after the Employment Period, the Company
          ---------------
shall indemnify the Executive and hold the Executive harmless from and against
any claim, loss or cause of action arising from or out of the Executive's
performance as an officer, director or employee of the Company or any of its
subsidiaries or in any other

                                      -4-
<PAGE>

capacity, including any fiduciary capacity, in which the Executive serves at the
request of the Company to the maximum extent permitted by applicable law and the
Company's Certificate of Incorporation and By-Laws (the "Governing Documents");
provided, however, that in no event shall the protection afforded to the
Executive hereunder be less than that afforded under the Governing Documents as
in effect immediately prior to the Change of Control Date.

     SECTION 6.  Termination.
                 -----------

     (a)  Death, Disability or Retirement.  This Agreement shall terminate
          -------------------------------
automatically upon the Executive's death, termination due to "Disability" (as
defined below) or voluntary retirement under any of the Company's retirement
plans as in effect from time to time.  For purposes of this Agreement,
Disability shall mean the Executive's inability to perform the duties of his
position, as determined in accordance with the policies and procedures
applicable with respect to the Company's long-term disability plan, as in effect
immediately prior to the Change of Control Date.

     (b)  Voluntary Termination.  Notwithstanding anything in this Agreement to
          ---------------------
the contrary, following a Change of Control the Executive may, upon not less
than 10 days' written notice to the Company, voluntarily terminate his
employment for any reason (including early retirement under the terms of any of
the Company's retirement plans as in effect from time to time); provided,
however, that any termination by the Executive pursuant to Section 6(d) on
account of Good Reason (as defined therein) shall not be treated as a voluntary
termination under this Section 6(b).

     (c)  Cause. The Company may terminate the Executive's employment for Cause.
          -----
For purposes of this Agreement, "Cause" means:

          (i)   the Executive's conviction or plea of nolo contendere to a
     felony;

          (ii)  an act or acts of extreme dishonesty or gross misconduct on the
     Executive's part which result or are intended to result in material damage
     to the Company's business or reputation; or

          (iii) repeated material violations by the Executive of his
     obligations under Section 4 of this Agreement, which violations are
     demonstrably willful and deliberate on the Executive's part and which
     result in material damage to the Company's business or reputation.

     (d)  Good Reason.  Following the occurrence of a Change of Control, the
          -----------
Executive may terminate his employment for Good Reason.  For purposes of this
Agreement, "Good Reason" means the occurrence of any of the following, without
the express written consent of the Executive, after the occurrence of a Change
of Control:

          (i)   (A) the assignment to the Executive of any duties inconsistent
     in any material adverse respect with the Executive's position, authority or
     responsibilities as contemplated by Section 4 of this Agreement, or (B) any
     other material adverse change in such position, including titles, authority
     or responsibilities;

          (ii)  any failure by the Company to comply with any of the provisions
     of Section 5 of this Agreement, other than an insubstantial or inadvertent
     failure remedied by the Company promptly after receipt of notice thereof
     given by the Executive;

          (iii) the Company's requiring the Executive to be based, or to
     perform a substantial potion of his duties with the Company, at any office
     or location  more than 20 miles from that location at which he performed
     his services specified under the provisions of Section 4 immediately prior
     to the Change of Control Date, except for travel reasonably required in the
     performance of the Executive's responsibilities; or

          (iv)  any failure by the Company to obtain the assumption and
     agreement to perform this Agreement by a successor as contemplated by
     Section 11(b).

                                      -5-
<PAGE>

     In no event shall the mere occurrence of a Change of Control, absent any
further impact on the Executive, be deemed to constitute Good Reason.

     (e)  Notice of Termination.  Any termination by the Company for Cause or by
          ---------------------
the Executive for Good Reason shall be communicated by Notice of Termination to
the other party hereto given in accordance with Section 12(e).  For purposes of
this Agreement, a "Notice of Termination" means a written notice given, in the
case of a termination for Cause, within 10 business days of the Company's having
actual knowledge of the events giving rise to such termination, and in the case
of a termination for Good Reason, within 180 days of the Executive's having
actual knowledge of the events giving rise to such termination, and which (i)
indicates the specific termination provision in this Agreement relied upon, (ii)
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under the provision so
indicated, and (iii) if the termination date is other than the date of receipt
of such notice, specifies the termination date of this Agreement (which date
shall be not more than 15 days after the giving of such notice).  The failure by
the Executive to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason shall not waive any right of the
Executive hereunder or preclude the Executive from asserting such fact or
circumstance in enforcing his rights hereunder.

     (f)  Date of Termination. For the purpose of this Agreement, the term "Date
          -------------------
of Termination" means (i) in the case of a termination for which a Notice of
Termination is required, the date of receipt of such Notice of Termination or,
if later, the date specified therein, as the case may be, and (ii) in all other
cases, the actual date on which the Executive's employment terminates during the
Employment Period.

     SECTION 7.  Obligations of the Company upon Termination.
                 -------------------------------------------

     (a)  Death or Disability.  If the Executive's employment is terminated
          -------------------
during the Employment Period by reason of the Executive's death or Disability,
this Agreement shall terminate without further obligations to the Executive or
the Executive's legal representatives under this Agreement other than those
obligations accrued hereunder at the Date of Termination, and the Company shall
pay to the Executive (or his beneficiary or estate):

          (i)   the Executive's full Base Salary through the Date of Termination
     (the "Earned Salary"),

          (ii)  any vested amounts or benefits owing to the Executive under the
     Company's otherwise applicable employee benefit plans and programs,
     including any compensation previously deferred by the Executive (together
     with any accrued earnings thereon) and not yet paid by the Company and any
     accrued vacation pay not yet paid by the Company (the "Accrued
     Obligations"), and

          (iii) any other benefits payable due to the Executive's death or
     Disability under the Company's plans, policies or programs (the "Additional
     Benefits").

Any Earned Salary shall be paid in cash in a single lump sum as soon as
practicable, but in no event more than 10 business days (or at such earlier date
required by law), following the Date of Termination.  Accrued Obligations and
Additional Benefits shall be paid in accordance with the terms of the applicable
plan, program or arrangement.

     (b)  Cause and Voluntary Termination. If, during the Employment Period, the
          -------------------------------
Executive's employment shall be terminated for Cause or voluntarily terminated
by the Executive (other than on account of Good Reason following a Change of
Control) in accordance with Section 6(b), the Company shall pay the Executive
(i) the Earned Salary in cash in a single lump sum as soon as practicable, but
in no event more than 10 days, following the Date of Termination, and (ii) the
Accrued Obligations in accordance with the terms of the applicable plan, program
or arrangement.

     (c)  Termination by the Executive for Good reason and Termination by the
          -------------------------------------------------------------------
Company other than for Cause.
----------------------------

          (i)   Lump Sum Payments. If (X) the Company terminates the Executive's
                -----------------
     employment other than for Cause during the Employment Period or (Y) the
     Executive terminates his employment for Good

                                      -6-
<PAGE>

     Reason at any time during the Employment Period, then the Company shall pay
     to the Executive the following amounts:

               (A)  the Executive's Earned Salary;

               (B)  a cash amount (the "Severance Amount") equal to three (3)
          times the sum of (1) the Executive's annual Base Salary; (2) the
          greater of (X) the average of the bonus amount payable (including any
          amounts payable under the Annual Incentive Plan) to the Executive for
          the three fiscal years of the Company immediately preceding the Change
          of Control Date or (Y) the average of the bonus amount payable
          (including any amount payable under the Annual Incentive Plan) to the
          Executive for the three fiscal years of the Company ending immediately
          prior to the Date of Termination; and (3) an amount determined by
          multiplying (i) the aggregate number of Performance Shares, as
          designated in the award letter issued in the calendar year in which
          the Change of Control occurs, to be awarded to the Executive at the
          target performance level, and (ii) the Average Closing Price; and

               (C)  the Accrued Obligations.

     The Earned Salary and Severance Amount shall be paid in cash in a single
     lump sum as soon as practicable, but in no event more than 10 business days
     (or at such earlier date required by law), following the Date of
     Termination.  Accrued Obligations shall be paid in accordance with the
     terms of the applicable plan, program or arrangement.

          (ii) Supplemental Retirement Benefit.  In the event the Executive is
               -------------------------------
     entitled to receive the Severance Amount described in Section 7(c)(i), the
     Executive (and, to the extent applicable, his dependents) shall be entitled
     to receive a supplemental retirement benefit payable pursuant to a deferred
     annuity contract issued by a solvent insurer mutually acceptable to the
     Company and the Executive and purchased by the Company and delivered to the
     Executive within 60 days after the Date of Termination.  Such annuity
     contract shall provide for monthly payments on and after the Executive's
     65th birthday and 100% survivor benefits to the Executive's spouse for such
     individual's lifetime in the event of the Executive's death prior to or
     after age 65.  The monthly benefits to be provided by the annuity shall be
     determined as follows:

               (A)  three years shall be added to Executive's credited service
          as determined at Date of Termination under the terms of the NBC
          Pension Plan (the "Pension Plan") as in effect immediately prior to
          the Change of Control Date (subject to any applicable maximum on
          credited service);

               (B)  using such adjusted credited service, a new monthly benefit
          for life commencing at age 65 shall be determined as of the Date of
          Termination under the terms of the Pension Plan;

               (C)  from such monthly benefit as calculated in (B) above shall
          be subtracted the monthly vested deferred benefit of Executive due to
          be paid on and after attainment of age 65, if any, pursuant to the
          terms of all defined benefit pension plans, active or frozen, in which
          Executive is a participant at his Date of Termination if such plans
          are sponsored by the Company, its successors or affiliates thereof;
          and

               (D)  in accordance with the terms of the Pension Plan, the
          difference described in (C) next above shall be converted from a
          monthly lifetime benefit after age 65 to the actuarial equivalent
          monthly benefit on and after attainment of age 65 which provides the
          100% survivorship feature first above described in this Section
          7(c)(ii).

     For purposes of making the foregoing determinations, at the request of
     Executive in the Notice of Termination given by Executive or in writing
     within 3 days of Executive's receipt of Notice of Termination, but in
     either event at Company expense, the independent pension consultants most
     recently used by Company in connection with its qualified pension plan
     prior to the Change of Control Date shall be engaged and shall

                                      -7-
<PAGE>

     certify the benefits due Executive under this Section 7(c)(ii) in writing
     within 30 days after the Date of Termination. If the amount to be offset
     under subparagraph (C) above shall not be determined by the end of a period
     of 30 days after the Date of Termination, no such offset shall be
     permitted.

          (iii) Continuation of Benefits. In the event the Executive is entitled
                ------------------------
     to receive the Severance Amount described in Section 7(c)(i), the Executive
     (and, to the extent applicable, his dependents) shall be entitled, after
     the Date of Termination until the earlier of (1) the second anniversary of
     the Date of Termination (the "End Date") or (2) the date the Executive
     becomes eligible for comparable benefits under a similar plan, policy or
     program of a subsequent employer, to continue participation in all of the
     Company's employee welfare benefit plans including, without limitation, the
     Company's hospital, medical, accident, disability and life insurance plans
     (the "Benefit Plans") as were generally provided to the Executive in
     accordance with the Company's policies and practices immediately prior to
     the Change of Control Date. To the extent any such benefits cannot be
     provided under the terms of the applicable plan, policy or program, the
     Company shall provide a comparable benefit under another plan or from the
     Company's general assets. The Executive's participation in the Benefit
     Plans will be on the same terms and conditions that would have applied had
     the Executive continued to be employed by the Company through the End Date.

     (d)  Discharge of the Company's Obligations.  Except as expressly provided
          --------------------------------------
in the last sentence of this Section 7(d), the amounts payable to the Executive
pursuant to this Section 7 (whether or not reduced pursuant to Section 7(e))
following termination of his employment shall be in full and complete
satisfaction of the Executive's rights under this Agreement and any other claims
he may have in respect of his employment by the Company or any of its
subsidiaries.  Such amounts shall constitute liquidated damages with respect to
any and all such rights and claims and, upon the Executive's receipt of such
amounts, the Company shall be released and discharged from any and all liability
to the Executive in connection with this Agreement or otherwise in connection
with the Executive's employment with the Company and its subsidiaries.  Nothing
in this Section 7(d) shall be construed to release the Company from its
commitment to indemnify the Executive and hold the Executive harmless from and
against any claim, loss or cause of action arising from or out of the
Executive's performance as an officer, director or employee of the Company or
any of its subsidiaries or in any other capacity, including any fiduciary
capacity, in which the Executive served at the request of the Company to the
maximum extent permitted by applicable law and the Governing Documents.

     (e)  Certain Further Payments by the Company.
          ---------------------------------------

          (i)   In the event that any amount or benefit paid or distributed to
     the Executive pursuant to this Agreement, taken together with any amounts
     or benefits otherwise paid or distributed to the Executive by the Company
     or any affiliated company including, without limitation, any distribution
     or payment made pursuant to the terms of the Company's compensation plans
     or arrangements (collectively, the "Covered Payments"), are or become
     subject to the tax (the "Excise Tax") imposed under Section 4999 of the
     Internal Revenue Code of 1986, as amended (the "Code"), or any similar tax
     that may hereafter be imposed, the Company shall pay to the Executive at
     the time specified in Section 7(e)(v) below an additional amount (the "Tax
     Reimbursement Payment") such that the net amount retained by the Executive
     with respect to such Covered Payments, after deduction of any Excise Tax on
     the Covered Payments and any Federal, state and local income or employment
     tax and Excise Tax on the Tax Reimbursement Payment provided for by this
     Section 7(e), but before deduction for any Federal, state or local income
     or employment tax withholding on such Covered Payments, shall be equal to
     the amount of the Covered Payments.

          (ii)  For purposes of determining whether any of the Covered Payments
     will be subject to the Excise Tax and the amount of such Excise Tax, (A)
     such Covered Payments will be treated as "parachute payments" within the
     meaning of Section 280G of the Code, and all "parachute payments" in excess
     of the "base amount" (as defined under Section 280G(b)(3) of the Code)
     shall be treated as subject to the Excise Tax, unless, and except to the
     extent that, in the good faith judgment of the Company's independent
     certified public accountants appointed prior to the Change of Control Date
     or tax counsel selected by such Accountants (the "Accountants"), the
     Company has a reasonable basis to conclude that such Covered Payments (in
     whole or in part) either do not constitute "parachute payments" or
     represent reasonable compensation for personal

                                      -8-
<PAGE>

     services actually rendered (within the meaning of Section 280G(b)(4)(B) of
     the Code) in excess of the "base amount," or such "parachute payments" are
     otherwise not subject to such Excise Tax, and (B) the value of any non-cash
     benefits or any deferred payment or benefit shall be determined by the
     Accountants in accordance with the principles of Section 280G of the Code.

          (iii) For purposes of determining the amount of the Tax Reimbursement
     Payment, the Executive shall be deemed to pay:

                (A) Federal income taxes at the highest applicable marginal rate
          of Federal income taxation for the calendar year in which the Tax
          Reimbursement Payment is to be made, and

                (B) any applicable state and local income taxes at the highest
          applicable marginal rate of taxation for the calendar year in which
          the Tax Reimbursement Payment is to be made, net of the maximum
          reduction in Federal income taxes which could be obtained from the
          deduction of such state or local taxes if paid in such year.

          (iv)  In the event that the Excise Tax is subsequently determined by
     the Accountants or pursuant to any proceeding or negotiations with the
     Internal Revenue Service to be less than the amount taken into account
     hereunder in calculating the Tax Reimbursement Payment made, the Executive
     shall repay to the Company, at the time that the amount of such reduction
     in the Excise Tax is finally determined, the portion of such prior Tax
     Reimbursement Payment that would not have been paid if such Excise Tax had
     been applied in initially calculating such Tax Reimbursement Payment, plus
     interest on the amount of such repayment at the rate provided in Section
     1274(b)(2)(B) of the Code.  Notwithstanding the foregoing, in the event any
     portion of the Tax Reimbursement Payment to be refunded to the Company has
     been paid to any Federal, state or local tax authority, repayment thereof
     shall not be required until actual refund or credit of such portion has
     been made to the Executive, and interest payable to the Company shall not
     exceed interest received or credited to the Executive by such tax authority
     for the period it held such portion.  The Executive and the Company shall
     mutually agree upon the course of action to be pursued (and the method of
     allocating the expenses thereof) if the Executive's good faith claim for
     refund or credit is denied.

     In the event that the Excise Tax is later determined by the Accountants or
     pursuant to any proceeding or negotiations with the Internal Revenue
     Service to exceed the amount taken into account hereunder at the time the
     Tax Reimbursement Payment is made (including, but not limited to, by reason
     of any payment the existence or amount of which cannot be determined at the
     time of the Tax Reimbursement Payment), the Company shall make an
     additional Tax Reimbursement Payment in respect of such excess (plus any
     interest or penalty payable with respect to such excess) at the time that
     the amount of such excess is finally determined.

          (v)   The Tax Reimbursement Payment (or portion thereof) provided for
     in Section 7(e)(i) above shall be paid to the Executive not later than 10
     business days following the payment of the Covered Payments; provided,
     however, that if the amount of such Tax Reimbursement Payment (or portion
     thereof) cannot be finally determined on or before the date on which
     payment is due, the Company shall pay to the Executive by such date an
     amount estimated in good faith by the Accountants to be the minimum amount
     of such Tax Reimbursement Payment and shall pay the remainder of such Tax
     Reimbursement Payment (together with interest at the rate provided in
     Section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be
     determined, but in no event later than 45 calendar days after payment of
     the related Covered Payment. In the event that the amount of the estimated
     Tax Reimbursement Payment exceeds the amount subsequently determined to
     have been due, such excess shall constitute a loan by the Company to the
     Executive, payable on the fifth business day after written demand by the
     Company for payment (together with interest at the rate provided in Section
     1274(b)(2)(B) of the Code).

     SECTION 8. Non-Exclusivity of Rights.  Except as expressly provided herein,
                -------------------------
nothing in this Agreement shall prevent or limit the Executive's continuing or
future participation in any benefit, bonus, incentive or other plan or program
provided by the Company or any of its affiliated companies and for which the
Executive may

                                      -9-
<PAGE>

qualify, nor shall anything herein limit or otherwise prejudice such rights as
the Executive may have under any other agreements with the Company or any of its
affiliated companies. Amounts which are vested benefits or which the Executive
is otherwise entitled to receive under any plan or program of the Company or any
of its affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan or program.

     SECTION 9.   Full Settlement. The Company's obligation to make the payments
                  ---------------
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right which
the Company may have against the Executive or others whether by reason of the
subsequent employment of the Executive or otherwise.

     SECTION 10.  Legal Fees and Expenses.  If the Executive asserts any claim
                  -----------------------
in any contest (whether initiated by the Executive or by the Company) as to the
validity, enforceability or interpretation of any provision of this Agreement,
the Company shall pay the Executive's legal expenses (or cause such expenses to
be paid) including, without limitation, his reasonable attorney's fees, on a
quarterly basis, upon presentation of proof of such expenses; provided, however,
that the Executive shall reimburse the Company for such amounts, plus simple
interest thereon at the 90-day United States Treasury Bill rate as in effect
from time to time, compounded annually, if the Executive shall not prevail, in
whole or in part, as to any material issue as to the validity, enforceability or
interpretation of any provision of this Agreement.

     SECTION 11.  Successors.
                  ----------

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

     (b)  This Agreement shall inure to the benefit of and be binding upon the
Company and its successors. The Company shall require any successor to all or
substantially all of the business and/or assets of the Company, whether direct
or indirect, by purchase, merger, consolidation, acquisition of stock or
otherwise, by an agreement in form and substance satisfactory to the Executive,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent as the Company would be required to perform if no such
succession had taken place.

     SECTION 12.  Miscellaneous.
                  -------------

     (a)  Applicable Law.  This Agreement shall be governed by and construed and
          --------------
conferred in accordance with the laws of the State of Delaware (and, as
applicable, Title 9 of the U.S. Code) applied without reference to principles of
conflict of laws.

     (b)  Arbitration. Any dispute or controversy arising under or in connection
          -----------
with this Agreement shall be resolved by binding arbitration. The arbitration
shall be held at a site selected by the arbitrators and except to the extent
inconsistent with this Agreement, shall be conducted in accordance with the
Expedited Employment Arbitration Rules of the American Arbitration Association
then in effect at the time of the arbitration, and otherwise in accordance with
principles which would be applied by a court of law or equity. The arbitrator
shall be acceptable to both the Company and the Executive. If the parties cannot
agree on an acceptable arbitrator, the dispute shall be heard by a panel of
three arbitrators, one appointed by each of the parties and the third appointed
by the other two arbitrators.

     (c)  Amendments.  This Agreement may be amended or modified by the Board of
          ----------
Directors at any time prior to a Change in Control; provided, however, that
subsequent to the occurrence of a Potential Change in Control, this Agreement
may not be amended or modified otherwise than by a written agreement executed by
the parties hereto or their respective successors and legal representatives.
Notwithstanding the foregoing sentence, in the event that subsequent to the
occurrence of a Potential Change in Control (i) the Board of Directors makes a
good faith determination that the events giving rise to a Potential Change in
Control will not result in the occurrence of a Change in Control or (ii) an
actual Change in Control has not occurred after the first anniversary of the
occurrence of a Potential Change in Control (or any Potential Change in Control
events occurring after the initial Potential Change in Control), the foregoing
limitation on the amendment or modification of this Agreement shall cease to
apply unless

                                      -10-
<PAGE>

and until it thereafter again becomes effective by reason of the occurrence of
another Potential Change in Control or any actual Change in Control.

     (d)  Notices.  All notices and other communications hereunder shall be in
          -------
writing and shall be given by hand-delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

     If to the Executive:  at the home address of the Executive noted on the
     records of the Company

     If to the Company:  Alabama National BanCorporation
                              1927 First Avenue North
                              Birmingham, Alabama 35203
                              Attn.:  Chairman of the Board of Directors

                         With a copy to:

                              Mark L. Drew
                              Maynard, Cooper & Gale, P.C.
                              1901 Sixth Avenue North
                              2400 AmSouth/Harbert Plaza
                              Birmingham, Alabama 35203

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

     (e)  Entire Agreement.  Upon the Change of Control Date, unless otherwise
          ----------------
provided herein, this Agreement shall constitute the entire agreement between
the parties hereto with respect to the matters referred to herein. There are no
promises, representations, inducements or statements between the parties other
than those that are expressly contained herein.  In the event any provision of
this Agreement is invalid or unenforceable, the validity and enforceability of
the remaining provisions hereof shall not be affected.  The Executive
acknowledges that he is entering into this Agreement of his own free will and
accord, and with no duress, that he has read this Agreement and that he
understands it and its legal consequences.

     IN WITNESS WHEREOF, the Executive has hereunto set his hand and the Company
has caused this Agreement to be executed in its name on its behalf, and its
corporate seal to be hereunto affixed and attested by its Secretary, all as of
the day and year first above written.

                                        ALABAMA NATIONAL BANCORPORATION

                                        By: /s/ John H. Holcomb, III
                                            ----------------------------
                                        Name:  John H. Holcomb, III
                                              --------------------------
                                        Title: Chairman and CEO
                                               -------------------------

                                        EXECUTIVE

                                        Signature: /s/ Dan M. David
                                                   ----------------
                                        Name: Dan M. David
                                              ------------
                                        Title: Vice Chairman
                                               -------------

                                      -11-Exhibit 10.17
-------------

                       FORM OF CHANGE IN CONTROL AGREEMENT
                           MONTEREY BAY BANCORP, INC.
                                MONTEREY BAY BANK

         This AGREEMENT is made effective as of _________________,  2001, by and
between Monterey Bay Bancorp,  Inc.  ("Company"),  a corporation organized under
the laws of the State of Delaware,  with its principal executive offices located
at 567 Auto Center Drive, Watsonville,  California, 95076; and Monterey Bay Bank
("Association"),   a  federally  chartered  savings  and  loan  association,   a
wholly-owned  subsidiary  of the Company,  and  ________________________________
("Executive").

         WHEREAS, the Company and Association wish to assure both themselves and
their key employees of continuity  of management  and objective  judgment in the
event of a threatened or actual change in control of the Company or Association,
and to induce its key employees to remain employed by the Company or Association
in the event of a  threatened  or actual  change in  control  of the  Company or
Association, and

         WHEREAS,  the  Boards  of  Directors  of  the  Company  and  /  or  the
Association  have determined that Executive is a key employee of the Company and
/ or Association and an integral part of its management; and

         WHEREAS,  this  Agreement  is not  intended  to  alter  materially  the
compensation and benefits that the Executive  reasonably could expect to receive
in the  absence of a  threatened  or actual  change in control of the Company or
Association,  and  this  Agreement  accordingly  will  be  operative  only  upon
circumstances relating to a change in control of the Company or Association,  as
set forth herein.

         NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants herein contained, the parties hereby agree as follows:

1.       TERM OF AGREEMENT.
         -----------------

         The term of this Agreement  shall be deemed to have commenced as of the
date first  above  written and shall  continue  for a period of twelve (12) full
calendar months  thereafter.  Commencing on the first  anniversary  date of this
Agreement and  continuing at each  anniversary  date  thereafter,  the Boards of
Directors ("Board") of the Company and Association may extend this Agreement for
an additional twelve months.  The Boards of Directors will review this Agreement
at least annually for purposes of  determining  whether to extend this Agreement
and shall give notice to the Executive as soon as possible  after such review as
to whether the Agreement is to be extended.

                                                                               1
<PAGE>

2.       CHANGE IN CONTROL.
         -----------------

         (a) Upon the  occurrence  of a Change  in  Control  of the  Company  or
Association  (as herein  defined)  followed  at any time during the term of this
Agreement  or for  six  months  thereafter  by the  termination  of  Executive's
employment,  other than for  Termination  for Cause,  as defined in Section 2(c)
hereof, the provisions of Section 3 shall apply.

         (b) For  purposes  of this  Agreement,  a "Change  in  Control"  of the
Company  or  Association  shall  mean an event of a nature  that:  (i)  would be
required to be  reported in response to Item 1(a) of the Current  Report on Form
8-K,  as in effect on the date  hereof,  pursuant  to Section 13 or 15(d) of the
Securities  Exchange  Act of 1934 (the  "Exchange  Act");  or (ii)  results in a
Change in Control of the Company or  Association  within the meaning of the Home
Owners' Loan Act of 1933 and the Rules and Regulations promulgated by the Office
of Thrift Supervision  ("OTS") (or its predecessor or successor  agency),  as in
effect on the date hereof  (provided,  that in applying the definition of change
in control as set forth under the rules and  regulations  of the OTS, the Boards
of Directors  shall  substitute  their  judgment for that of the OTS);  or (iii)
without  limitation such a Change in Control shall be deemed to have occurred at
such time as (A) any "person"  (as the term is used in Sections  13(d) and 14(d)
of the Exchange  Act) is or becomes the  "beneficial  owner" (as defined in Rule
13d-3 under the Exchange  Act),  directly or  indirectly,  of  securities of the
Company or  Association  representing  25% or more of the  Association's  or the
Company's  outstanding  securities  except for any securities of the Association
purchased by the Company in connection with the conversion of the Association to
the stock form and any securities  purchased by any employee benefit plan of the
Company  or  Association,  or (B)  individuals  who  constitute  the  Boards  of
Directors on the date hereof (the  "Incumbent  Boards")  cease for any reason to
constitute  at least a majority  thereof,  provided  that any person  becoming a
Director  subsequent to the date hereof whose election was approved by a vote of
at least  three-quarters  of the Directors  comprising the Incumbent  Boards, or
whose nomination for election by the Company's or Association's stockholders was
approved by the same Nominating Committees serving under Incumbent Boards, shall
be, for  purposes of this clause (B),  considered  as though he were a member of
the Incumbent Boards, or (C) a plan of  reorganization,  merger,  consolidation,
sale of all or  substantially  all the assets of the Company or  Association  or
similar  transaction  occurs  in which the  Company  or  Association  is not the
resulting  entity,  or (D) a proxy statement is distributed  soliciting  proxies
from stockholders of the Company,  by someone other than the current  management
of the Company, seeking stockholder approval of a plan of reorganization, merger
or consolidation of the Company or Association with one or more  corporations as
a result of which the outstanding shares of the class of securities then subject
to such plan or transaction are exchanged for or converted into cash or property
or securities not issued by the Company or the Association shall be distributed,
or (E) a tender  offer is made for 25% or more of the voting  securities  of the
Company or Association then outstanding.

                                                                               2
<PAGE>

         (c) Executive shall not have the right to receive termination  benefits
pursuant to Section 3 hereof upon Termination for Cause.  The term  "Termination
for Cause" shall mean termination because of the Executive's intentional failure
to perform stated duties, personal dishonesty, incompetence,  unsatisfactory job
performance as voted by at least a three-fourths majority of the Boards, willful
misconduct,  any breach of fiduciary duty  involving  personal  profit,  willful
violation of any law, rule, regulation (other than traffic violations or similar
offenses)  or final  cease and desist  order,  the use of drugs or alcohol  that
interferes  with the  Executive's  performance  of his job duties,  any unlawful
conduct by Executive injurious to the interest, property,  operations,  business
or  reputation  of the Company or  Association,  or any material  breach of this
Agreement.  For  purposes  of this  Section,  no act,  or the failure to act, on
Executive's  part shall be "willful"  unless done, or omitted to be done, not in
good faith and without  reasonable belief that the action or omission was in the
best interest of the Company or its affiliates.  Notwithstanding  the foregoing,
Executive shall not be deemed to have been Terminated for Cause unless and until
there shall have been  delivered to him a copy of a  resolution  duly adopted by
the affirmative vote of not less than three-fourths of the members of the Boards
of  Directors  at meetings of the Boards of  Directors  called and held for that
purpose,  finding  that in the good faith  opinion  of the Boards of  Directors,
Executive was guilty of conduct justifying  Termination for Cause and specifying
the particulars thereof in detail. Executive shall not have the right to receive
compensation or other benefits for any period after  Termination for Cause.  Any
stock options and related  limited rights  granted to Executive  under any stock
option plan, or any unvested  awards  granted to Executive  under any restricted
stock  benefit  plan of the Company or its  subsidiaries,  shall become null and
void effective upon  Executive's  receipt of Notice of Termination For Cause and
shall not be exercisable by or delivered to Executive at any time  subsequent to
such Termination for Cause.

                                                                               3
<PAGE>

3.       TERMINATION BENEFITS.
         --------------------

         (a) If within six (6) months following the date a Change in Control has
occurred or the Boards of Directors have determined that a Change in Control has
occurred,  Executive shall be entitled to the benefits provided in Sections 3(b)
and 3(c) upon: (1) Executive's termination by the Company or Association,  other
than for  Termination  for Cause,  or (2) a material  detrimental  alteration in
authority or responsibility,  demotion, loss of title, or (3) material reduction
in annual compensation or benefits,  with material reduction defined as 5.00% or
more, or (4)  relocation of  Executive's  principal  place of employment by more
than thirty (30) miles from its prior location.

         (b) If the Executive  becomes  eligible for benefits under Section 3(a)
above, the Company or Association shall be obligated to pay Executive, or in the
event of his subsequent death, his beneficiary or beneficiaries,  or his estate,
as the case may be, a sum equal to _______ (__) times  Executive's  then current
annual  compensation.  Such annual  compensation shall include base salary, auto
allowance, any bonuses in the form of cash or stock grants paid or to be paid to
Executive  in any such  year,  and the  amount of  benefits  paid or  accrued to
Executive  pursuant to any  qualified  or  non-qualified  employee  benefit plan
maintained  by the Company or  Association  in any such year. At the election of
Executive  which  election  is to be made  prior to a Change  in  Control,  such
payment  may be made in a lump  sum.  In the  event  that no  election  is made,
payment to  Executive  will be made on a monthly  basis in  approximately  equal
installments  during  the  remaining  term of  this  Agreement.  This  Agreement
specifically  states that no benefits will be "grossed up" or otherwise adjusted
to reflect  the  personal  income tax  consequences  to or  personal  income tax
liabilities of Executive.

         (c) If the Executive  becomes  eligible for benefits under Section 3(a)
above, the Company or Association shall cause to be continued  medical,  dental,
vision, short term disability,  and long term disability coverage  substantially
similar to the coverage  maintained by the Company or Association  for Executive
prior to his severance, except to the extent such coverage may be changed in its
application to all Company or Association employees.  Such coverage and payments
shall cease upon  expiration of twelve (12) full calendar  months  following the
Date of Termination.

                                                                               4
<PAGE>

         (d) Notwithstanding the preceding  provisions of this Section 3, in the
event that:

                  (i)      the  aggregate  payments  or  benefits  to be made or
                           afforded  to  Executive,   which  are  deemed  to  be
                           parachute  payments as defined in Section 280G of the
                           Internal  Revenue  Code  of  1986,  as  amended  (the
                           "Code") or any successor  thereof,  (the "Termination
                           Benefits")  would be deemed  to  include  an  "excess
                           parachute  payment"  under  Section 280G of the Code;
                           and

                  (ii)     if  such  Termination  Benefits  were  reduced  to an
                           amount (the  "Non-Triggering  Amount"),  the value of
                           which is one dollar ($1.00) less than an amount equal
                           to three  (3) times  Executive's  "base  amount,"  as
                           determined in  accordance  with said Section 280G and
                           the  Non-Triggering  Amount would be greater than the
                           aggregate   value   of   the   Termination   Benefits
                           (excluding  such  reduction)  minus the amount of tax
                           required  to be  paid  by the  Executive  thereon  by
                           Section 4999 of the Code,

then the Termination Benefits shall be reduced to the Non-Triggering Amount. The
allocation of the reduction required hereby among the Termination Benefits shall
be determined solely by the Executive at Executive's discretion.

         (e)  If  the   Executive's   employment  is  terminated  by  reason  of
Executive's  voluntary  resignation,  all of  the  Company's  and  Association's
obligations  hereunder shall terminate upon the date the Executive  ceases to be
employed as a result of such voluntary resignation.  Executive shall be entitled
to no  additional  compensation  beyond  that  generally  available  to  all  or
substantially  all of the full-time  employees of the Company or  Association at
that  time,  and  Executive  shall only be  entitled  to that  compensation  and
benefits earned and vested at the date of such voluntary resignation.

                                                                               5
<PAGE>

4.       NOTICE OF TERMINATION.
         ---------------------

         (a)  Any  purported  termination  by the  Company,  Association,  or by
Executive  shall be  communicated  by Notice of  Termination  to the other party
hereto.  For purposes of this Agreement,  a "Notice of Termination" shall mean a
written notice which shall indicate the specific  termination  provision in this
Agreement relied upon and shall set forth in detail the facts and  circumstances
claimed to provide a basis for termination of Executive's  employment  under the
provision so indicated.

         (b) "Date of  Termination"  shall mean the date specified in the Notice
of Termination  (which, in the case of Termination for Cause,  shall not be less
than thirty (30) days from the date such Notice of Termination is given).

5.       SOURCE OF PAYMENTS.
         ------------------

         It is intended by the parties hereto that all payments provided in this
Agreement  shall  be paid in  cash  or  check  from  the  general  funds  of the
Association.  Further,  the Company guarantees such payment and provision of all
amounts and benefits due hereunder to Executive and, if such amount and benefits
due from the  Association  are not timely paid or  provided by the  Association,
such amounts and benefits shall be paid and provided by the Company.

6.       EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS.
         -----------------------------------------------------

         This Agreement  contains the entire  understanding  between the parties
hereto and supersedes any prior Change In Control Agreement or similar agreement
between the Company or  Association  and  Executive,  except that this Agreement
shall not affect or operate to reduce  any  benefit or  compensation  inuring to
Executive of a kind elsewhere provided.  No provision of this Agreement shall be
interpreted to mean that  Executive is subject to receiving  fewer benefits than
those available to him without reference to this Agreement.

         Nothing in this  Agreement  shall  confer upon  Executive  the right to
continue in the employ of the  Company or  Association,  or shall  impose on the
Company or  Association  any  obligation  to employ or retain  Executive  in its
employ for any period.  Neither the Executive nor the Company or  Association is
bound to continue the employment relationship if either chooses, at its will, to
end the relationship and terminate this Agreement at any time.

                                                                               6
<PAGE>

7.       NO ATTACHMENT.
         -------------

         (a) Except as required by law, no right to receive  payments under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance,  charge,  pledge, or  hypothecation,  or to execution,
attachment,  levy, or similar process or assignment by operation of law, and any
attempt,  voluntary  or  involuntary,  to affect any such action  shall be null,
void, and of no effect.

         (b) This Agreement  shall be binding upon, and inure to the benefit of,
Executive,  the Company and  Association  and their  respective  successors  and
assigns.

8.       MODIFICATION AND WAIVER.
         -----------------------

         (a)  This  Agreement  may  not be  modified  or  amended  except  by an
instrument in writing signed by the parties hereto.

         (b) No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver or estoppel.  No such written waiver shall be deemed a continuing  waiver
unless specifically  stated therein,  and each such waiver shall operate only as
to the specific  term or condition  waived and shall not  constitute a waiver of
such  term  or  condition  for  the  future  or as to any act  other  than  that
specifically waived.

                                                                               7
<PAGE>

9.       REQUIRED REGULATORY PROVISIONS.

         (a) If Executive is suspended from office and/or temporarily prohibited
from  participating  in the  conduct  of the  Association's  affairs by a notice
served under Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C.  ss.1818(E)(3)  or  (g)(1)),  the  Association's  obligations  under this
contract  shall  be  suspended  as of the  date of  service,  unless  stayed  by
appropriate  proceedings.  If the  charges  in the  notice  are  dismissed,  the
Association  may in its  discretion  reinstate  (in whole or in part) any of the
obligations which were suspended.

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

         (c) If the  Association is in default as defined in Section  3(x)(1) of
the Federal Deposit Insurance Act, all Obligations of the Association or Company
under this Agreement shall terminate as of the effective date of the order,  but
vested rights of the Executive,  the Company,  or the  Association  shall not be
affected.

         (d) All obligations under this contract shall be terminated,  except to
the extent  determined  that  continuation  of the contract is necessary for the
continued  operation  of the  institution:  (i) by the Director of the Office of
Thrift  Supervision  (or his or her  designee)  at the time the Federal  Deposit
Insurance  Corporation  or the  Resolution  Trust  Corporation  enters  into  an
agreement to provide  assistance  to or on behalf of the  Association  under the
authority  contained in Section 13(c) of the Federal  Deposit  Insurance Act; or
(ii)  by the  Director  of the  Office  of  Thrift  Supervision  (or  his or her
designee)  at  the  time  the  Director  (or  his or her  designee)  approves  a
supervisory  merger to resolve  problems related to operation of the Association
or when the  Association  is  determined  by the  Director to be in an unsafe or
unsound condition.  Any rights of the parties that have already vested, however,
shall not be affected by such action.

         (e) Any  payments  made to  Executive  pursuant to this  Agreement,  or
otherwise,   are   subject  to  and   conditioned   upon   compliance   with  12
U.S.C.ss.1828(k) and any rules and regulations promulgated thereunder.

                                                                               8
<PAGE>

10.      REINSTATEMENT OF BENEFITS UNDER SECTION 9(a).
         --------------------------------------------

         In the event Executive is suspended and/or temporarily  prohibited from
participating in the conduct of the Association's  affairs by a notice described
in Section 9(a) hereof (the  "Notice")  during the term of this  Agreement and a
Change in Control,  as defined herein,  occurs,  the Association will assume its
obligation  to  pay  and  Executive  will  be  entitled  to  receive  all of the
termination  benefits  provided for under Section 3 of this  Agreement  upon the
Association's receipt of a dismissal of charges in the Notice.

11.      SEVERABILITY.
         ------------

         If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this  Agreement or any part of such  provision not held so invalid,  and each
such other  provision and part thereof shall to the full extent  consistent with
law continue in full force and effect.

12.      HEADINGS FOR REFERENCE ONLY.
         ---------------------------

         The headings of sections and paragraphs  herein are included solely for
convenience of reference and shall not control the meaning or  interpretation of
any of the provisions of this Agreement.

13.      GOVERNING LAW.
         -------------

         The validity,  interpretation,  performance,  and  enforcement  of this
Agreement shall be governed by the laws of the State of Delaware,  except to the
extent preempted by Federal law.

                                                                               9
<PAGE>

14.      ARBITRATION.
         -----------

         In the event there is any dispute  arising out of this  Agreement,  the
Executive,  Company,  and  Association  agree to submit such  dispute to binding
arbitration in accordance with the terms of the Alternative  Dispute  Resolution
Agreement set forth in Appendix A to this Agreement and incorporated herein.

15.      PAYMENT OF COSTS AND LEGAL FEES.
         -------------------------------

                  In the event of any dispute between the parties  regarding the
interpretation or enforcement of this Agreement or any part thereof or otherwise
arising out of or  relating to this  Agreement,  the  prevailing  party shall be
entitled to recover  its costs  related to any such  dispute and its  reasonable
fees of attorneys,  accountants,  and expert witnesses incurred by such party in
connection therewith.  As used in this paragraph,  "prevailing party" shall mean
the party, if any, in whose favor  substantially all of the material issues have
been decided.

16.      INDEMNIFICATION.
         ---------------

         The Company shall provide Executive (including his heirs, executors and
administrators)   with  coverage  under  a  standard  directors'  and  officers'
liability insurance policy at its expense,  or in lieu thereof,  shall indemnify
Executive (and his heirs,  executors and  administrators)  to the fullest extent
permitted  under  Delaware law and as provided in the Company's  certificate  of
incorporation against all expenses and liabilities reasonably incurred by him in
connection with or arising out of any action, suit or proceeding in which he may
be involved by reason of his having been a Director or Officer of the Company or
Association (whether or not he continues to be a Director or Officer at the time
of incurring  such expenses or  liabilities),  such expenses and  liabilities to
include, but not be limited to, judgments, court costs, attorneys' fees, and the
cost of reasonable settlements.

                                                                              10
<PAGE>

17.      SUCCESSOR TO THE COMPANY.
         ------------------------

         The Company and  Association  shall  require any successor or assignee,
whether direct or indirect, by purchase, merger,  consolidation or otherwise, to
all  or  substantially  all  the  business  or  assets  of  the  Company  or the
Association,  expressly and  unconditionally  to assume and agree to perform the
Company's and Association's obligations under this Agreement, in the same manner
and to the same extent that the  Company  and  Association  would be required to
perform if no such succession or assignment had taken place.

                                   SIGNATURES

         IN WITNESS  WHEREOF,  Monterey Bay Bancorp,  Inc. and Monterey Bay Bank
have caused this Agreement to be executed by its duly  authorized  officer,  and
Executive  has signed  this  Agreement,  on the _____ day of  _________________,
2001.

ATTEST:                                              MONTEREY BAY BANCORP, INC.

                                            By:
----------------------------------                   ---------------------------
Corporate Secretary                                  C. Edward Holden
                                                     Chief Executive Officer
                                                     President

ATTEST:                                              MONTEREY BAY BANK

                                            By:
----------------------------------                   ---------------------------
Corporate Secretary                                  C. Edward Holden
                                                     Chief Executive Officer
                                                     President

WITNESS:                                             EXECUTIVE

----------------------------------                   ---------------------------
Witness Name                                         Executive Name

                                                                              11
<PAGE>

                                   APPENDIX A

                         ALTERNATIVE DISPUTE RESOLUTION

I.       AGREEMENT TO ARBITRATE

         In the event that any employment  dispute  arises between  Monterey Bay
         Bancorp,  Inc,  ("Company"),  Monterey  Bay  Bank  ("Association")  and
         __________________  ("Executive"),  the parties  involved will make all
         efforts to resolve any such dispute  through  informal  means. If these
         informal  attempts at resolution  fail and if the dispute arises out of
         or is related to a breach of the  parties'  Employment  Agreement,  the
         termination of employment or alleged unlawful discrimination,  Company,
         Association, and Executive will submit the dispute to final and binding
         arbitration.

         By  accepting  employment  with the Company or  Association,  Executive
         agrees that arbitration is the exclusive remedy for all such arbitrable
         disputes; with respect to such disputes, no other action may be brought
         in court or any other  forum  (except  actions  to  compel  arbitration
         hereunder).  THIS ALTERNATIVE DISPUTE RESOLUTION  ("ADR")AGREEMENT IS A
         WAIVER OF THE  PARTIES'  RIGHTS TO A CIVIL  COURT  ACTION FOR A DISPUTE
         RELATING   TO   TERMINATION   OF   EMPLOYMENT   OR   ALLEGED   UNLAWFUL
         DISCRIMINATION,  WHICH INCLUDES RETALIATION OR SEXUAL OR OTHER UNLAWFUL
         HARASSMENT;  ONLY AN ARBITRATOR,  NOT A JUDGE OR JURY,  WILL DECIDE THE
         DISPUTE.

         Employment  disputes  arising  out  of or  related  to  termination  of
         employment or alleged unlawful  discrimination,  including retaliation,
         sexual or other unlawful harassment,  shall include, but not be limited
         to, the following:  alleged  violations of federal,  state and/or local
         constitutions,  statutes or regulations;  claims based on any purported
         breach of contractual  obligation,  including breach of the covenant of
         good faith and fair dealing;  and claims based on any purported  breach
         of duty  arising  in  tort,  including  violations  of  public  policy.
         Disputes related to workers'  compensation  and unemployment  insurance
         are not arbitrable hereunder. Claims for benefits covered by a separate
         benefit plan that provides for  arbitration are not covered by this ADR
         Agreement.  Claims  that are filed with or are being  processed  by the
         U.S. Equal  Employment  Opportunity  Commission  ("EEOC"),  or that are
         brought  under Title VII of the Civil  Rights Act of 1964,  as amended,
         are not arbitrable  under this  Agreement,  except that the parties may
         agree in writing to do so with  respect to each such  dispute  that may
         arise.

                                                                              12
<PAGE>

II.      ARBITRATION PROCEDURES

         A.   Attempt At Informal Resolution Of Disputes

         Prior  to   submission   of  any  dispute  to   arbitration,   Company,
         Association,  and  Executive  shall  attempt  to  resolve  the  dispute
         informally through mediation.  Company, Association, and Executive will
         select a  mediator  from a list  provided  by the State  Mediation  and
         Conciliation  Service  or other  similar  agency  who will  assist  the
         parties  in  attempting  to  reach a  settlement  of the  dispute.  The
         mediator may make  settlement  suggestions to the parties but shall not
         have the power to impose a  settlement  upon  them.  If the  dispute is
         resolved  in  mediation,  the  matter  shall be deemed  closed.  If the
         dispute is not resolved in mediation and goes to the next step (binding
         arbitration),  any proposals or compromises  suggested by either of the
         parties or the mediator shall not be referred to or have any bearing on
         the  arbitration  procedure.  The  mediator  cannot  also  serve as the
         arbitrator in the subsequent  proceeding  unless all parties  expressly
         agree in writing.

         B.   Request for Arbitration

         Should Company, Association, or Executive wish to pursue arbitration of
         any  arbitrable  dispute,  Company,  Association,  Executive or its/his
         representative  must submit a written  "Request For Arbitration" to the
         other  party with (1) year of the  alleged  conduct  giving rise to the
         dispute.   If  the  "Request  For  Arbitration"  is  not  submitted  in
         accordance with the aforementioned time limitations, the party will not
         be able to bring  its/his  claims  to this or any other  forum.  Unless
         otherwise  required by law, the "Request For Arbitration" shall clearly
         state it is "Request  For  Arbitration"  at the  beginning of the first
         page and includes the following information:  (1) a factual description
         of the  dispute in  sufficient  detail to advise the other party of the
         nature of the dispute,  (2) the date when the dispute first arose,  and
         (3) the relief requested by requesting party.

         A Request  for  Arbitration  must be mailed to the other  party's  last
         known address or  hand-delivered  to that party.  The party to whom the
         Request for  Arbitration  is directed  will respond  within thirty (30)
         days so that  the  parties  can  begin  the  process  of  selecting  an
         Arbitrator. Such response may include any counterclaims.

         C.   Selection Of The Arbitrator

         All disputes will be resolved by a single Arbitrator,  selected through
         and under the American  Arbitration  Association's  "National Rules for
         the Resolution of Employment Disputes" as amended and effective June 1,
         1997.

                                                                              13
<PAGE>

         D.   The Arbitrator's Authority

         The Arbitrator shall have the powers enumerated below:

         1.       Ruling  on  motions   regarding   discovery,   and  ruling  on
                  procedural   and   evidentiary   issues   arising  during  the
                  arbitration.

         2.       Ruling on  motions  to  dismiss  and/or  motions  for  summary
                  judgment  applying the standards  governing such motions under
                  the Federal Rules of Civil Procedure.

         3.       Issuing  protective orders on the motion of any party or third
                  party witness, such protective orders may include, but are not
                  limited to, sealing the record of the arbitration, in whole or
                  in  part   (including   discovery   proceedings  and  motions,
                  transcripts,  and the  decision  and  award),  to protect  the
                  privacy or other constitutional or statutory rights of parties
                  and/or witnesses.

         4.       Determining  only  the  issue(s)  submitted  to  him/her.  The
                  issue(s) must be identifiable in the "Request For Arbitration"
                  or  counterclaim(s).  Except as required by law,  any issue(s)
                  not  identifiable  in those  documents is outside the scope of
                  the  Arbitrator's  jurisdiction  and any award  involving such
                  issue(s), upon motion by a party, shall be vacated.

                                                                              14
<PAGE>

         E.   Discovery

         The discovery  process shall proceed and be governed,  consistent  with
         the standards of the Federal Rules of Civil Procedure, as follows:

         1.       Unless otherwise required by law, parties may obtain discovery
                  by any of the following methods:

                  a.       Depositions   of  non-expert   witnesses   upon  oral
                           examination, five (5) per side as of right, with more
                           permitted if leave is obtained from the Arbitrator;

                  b.       Written  interrogatories,  up to a  maximum  combined
                           total  of  twenty  (20),  with the  responding  party
                           having twenty (20) days to respond;

                  c.       Request  for  production  of  documents  or things or
                           permission  to enter upon land or other  property for
                           inspection,  with the responding  party having twenty
                           (20) days to produce the documents and allow entry or
                           to file objections to the request;

                  d.       Physical and mental  examination,  in accordance with
                           Federal Rule of Civil Procedure 35(a); and

                  e.       Any   motion  to  compel   production,   answers   to
                           interrogatories  or entry onto land or property  must
                           be made to the Arbitrator within fifteen (15) days of
                           receipt of objections.

         2.       To the extent  permitted  by the  Federal  Arbitration  Act or
                  applicable  California law, each party shall have the right to
                  subpoena  witnesses and documents during discovery and for the
                  arbitration.

         3.       All discovery  requests  shall be submitted no less than sixty
                  (60) days before the hearing date.

         4.       The scope of discoverable evidence shall be in accordance with
                  Federal Rule of Civil Procedure 26(b)(1).

         5.       The   Arbitrator   shall  have  the  power  to   enforce   the
                  aforementioned   discovery   rights  and  obligations  by  the
                  imposition  of  the  same  terms,  conditions,   consequences,
                  liabilities,  sanctions and penalties as can or may be imposed
                  in like  circumstances  in a civil  action by a federal  court
                  under the Federal Rules of Civil Procedure.

                                                                              15
<PAGE>

         F.   Hearing Procedure

         The  hearing  shall  proceed  according  to  the  American  Arbitration
         Association's   "National   Rules  for  the  Resolution  of  Employment
         Disputes" as amended and  effective  June 1, 1997,  with the  following
         amendments:

                  1.       The  Arbitrator  shall  rule  at  the  outset  of the
                           arbitration on procedural issues that bear on whether
                           the arbitration is allowed to proceed.

                  2.       Each party has the burden of proving  each element of
                           its claims or  counterclaims,  and each party has the
                           burden of proving any of its affirmative defenses.

                  3.       In  addition  to,  or in  lieu of  closing  argument,
                           either  party  shall  have  the  right to  present  a
                           post-hearing  brief,  and the due date for exchanging
                           any  post-hearing  briefs shall be mutually agreed on
                           by the parties and the Arbitrator.

         G.   Substantive Law

                  1.       The  parties  agree  that they will be  afforded  the
                           identical legal equitable,  and statutory remedies as
                           would be  afforded  them were they to bring an action
                           in a court of competent jurisdiction.

                  2.       The  applicable  substantive  law shall be the law of
                           the  State of  California  or  federal  law.  If both
                           federal  and state law are  applicable  to a cause of
                           action,  Executive  shall have the right to elect his
                           choice of law.  Choice of  substantive  law in no way
                           affects the  procedural  aspects of the  arbitration,
                           which are  exclusively  governed by the provisions of
                           this ADR Agreement.

         H.   Opinion And Award

         The Arbitrator  shall issue a written opinion and award, in conformance
with the following requirements:

                  1.       The opinion and award must be signed and dated by the
                           Arbitrator.

                  2.       The  Arbitrator's  opinion and award shall decide all
                           issues submitted.

                  3.       The  Arbitrator's  opinion  and award shall set forth
                           the  legal  principles  supporting  each  part of the
                           opinion.

                  4.       The Arbitrator shall have the same authority to award
                           remedies,  damages  and costs as  provided to a judge
                           and/or jury under parallel circumstances.

                                                                              16
<PAGE>

         I.   Enforcement Of Arbitrator's Award

         Following  the  issuance of the  Arbitrator's  decision,  any party may
         petition  a  court  to   confirm,   enforce,   correct  or  vacate  the
         Arbitrator's  opinion  and award  under the  Federal  Arbitration  Act,
         and/or applicable California law.

         J.   Fees And Costs

         Unless otherwise  required by law, fees and costs shall be allocated in
the following manner:

                  1.       Each  party   shall  be   responsible   for  its  own
                           attorneys' fees, except as otherwise provided by law.

                  2.       The Company or Association  shall pay the entire cost
                           of the arbitrator's  services,  the facility in which
                           the arbitration is to be held, and any similar costs,
                           except that Executive shall  contribute  toward these
                           costs an amount equal to the then-current  filing fee
                           in  California  Superior  Court  charged for filing a
                           complaint or for first appearing, whichever is lower.

                  3.       The Company or Association  shall pay the entire cost
                           of a court  reporter to  transcribe  the  arbitration
                           proceedings.  Each party  shall  advance the cost for
                           said  party's  transcript  of the  proceedings.  Each
                           party shall  advance its own costs for witness  fees,
                           service  and  subpoena  charges,  copying,  or  other
                           incidental  costs that each party  would bear  during
                           the course of a civil lawsuit.

                  4.       Each  party  shall  be  responsible   for  its  costs
                           associated with discovery,  except as required by law
                           or court order.

                                                                              17
<PAGE>

III.     SEVERABILITY

         In the event that any  provision of this ADR Agreement is determined by
         a  court  of  competent   jurisdiction   to  be  illegal,   invalid  or
         unenforceable  to any extent,  such term or provision shall be enforced
         to the extent  permissible  under the law and all  remaining  terms and
         provisions  of this ADR  Agreement  shall  continue  in full  force and
         effect.

DATED: ________________, 2001                   _______________________________
                                                Executive

                                                MONTEREY BAY BANK

DATED: _______________,  2001                   By: ___________________________
                                                C. Edward Holden
                                                Chief Executive Officer
                                                President

                                                MONTEREY BAY BANCORP, INC.

DATED: _______________,  2001                   By: ___________________________
                                                C. Edward Holden
                                                Chief Executive Officer
                                                President

                                                                              18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]