<PAGE>
 
                                                                    EXHIBIT 10.2

                             EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made effective as of January 1, 1998 ("Effective Date"), 
by and between FIRST COMMUNITY BANK & TRUST ("Employer"), a bank organized and 
existing under the laws of the State of Georgia, and RODNEY L. GRIZZLE 
("Grizzle").                  

                                   RECITALS

     Employer and Grizzle (collectively the "Parties") recite and declare:

     A.   Grizzle serves as an employee at will for the Employer in the position
          of Senior Vice President.

     B.   The Parties desire to commit to the following terms and conditions for
          Grizzle's future employment.

     For the reasons set forth above, and in consideration of the mutual 
promises and agreements set forth in this Agreement, the Parties agree as 
follows:

                                   SECTION I
                                  EMPLOYMENT

     Employer hereby agrees to continue to employ Grizzle as Senior Vice 
President, and Grizzle hereby accepts and agrees to such employment, subject to 
the terms of this Agreement. During the term of his employment, Grizzle shall 
report directly to the President and Chief Executive Officer.

                                  SECTION II
                               RESPONSIBILITIES

     During the term of Grizzle's employment and subject to the terms of this 
Agreement, Grizzle shall have the responsibilities outlined in the position 
description incorporated into this Agreement as Appendix A.

                                  SECTION III
                               TERM OF AGREEMENT

     The term of this Agreement shall commence January 1, 1998, and continue 
for three (3) consecutive calendar years. Such term shall be automatically 
renewed at the end of each calendar year unless terminated as provided in 
Section VI of this Agreement.

<PAGE>
 
                                  SECTION IV
                            COMPENSATION OF GRIZZLE


     Employer will compensate Grizzle for his services rendered pursuant to this
Agreement as follows:

     (a)  BASE SALARY.  Employer shall pay Grizzle an annual base salary, 
          -----------
          payable bi-weekly, as stated on Appendix B attached to this Agreement.
          Base Salary shall be reviewed and amended annually for salary
          adjustments mutually agreed to between Grizzle and Employer.

     (b)  EMPLOYEE BENEFITS.  Grizzle shall fully participate in the following 
          -----------------
          employee benefits:

          (1)  MEDICAL, DENTAL AND GROUP TERM LIFE INSURANCE.  Grizzle shall
               ---------------------------------------------
               participate fully in medical, dental and group term life
               insurance provided by Employer to other employees.

          (2)  QUALIFIED RETIREMENT PLAN.  Grizzle shall participate fully in 
               -------------------------
               all tax qualified retirement plans provided by Employer to other
               employees. 

          (3)  DEFERRED COMPENSATION.  Grizzle shall be entitled to continued 
               ---------------------
               participation in the Executive Private Pension plan (EPP), to the
               extent of the terms of the EPP Agreement previously entered into 
               by the Parties on April 1, 1997.

          (4)  INCENTIVE COMPENSATION.  Grizzle shall be entitled to additional
               ----------------------
               annual cash compensation determined pursuant to a prearranged
               formula applied to the attainment of set performance goals. The
               details of the formula shall be approved annually by the Board of
               Directors of Employer.

          (5)  STOCK OPTIONS.  Grizzle shall be entitled to continued 
               -------------
               participation in the 1994 Incentive Stock Option Plan with
               options granted November 15, 1994 and November 21, 1995 and in
               the 1997 Stock Option Plan executed April 1, 1997.

               In addition, Employer shall grant to Grizzle stock options for an
               additional 5,000 shares of First Community Bancorp, Inc. The
               exercise price shall be the most recent appraised value of the
               stock and Grizzle's right to exercise the options shall vest pro
               rata over five (5) years from date of grant. Details of this new
               grant shall be finalized and documented as soon as reasonably
               practical, but in no event later than ninety (90) days after the
               execution of this Agreement.

                                       2
<PAGE>
 
          (6)  VACATION, HOLIDAYS AND SICK PAY. Grizzle shall be entitled to
               -------------------------------
               paid vacation, holidays, and to sick pay as defined in Employer's
               written personnel policy available to all employees as updated
               from time to time.

          (7)  COUNTRY CLUB DUES. Employer will pay Grizzle's dues to the
               -----------------
               Cartersville Country Club for the purpose of entertaining
               customers and prospective customers.

                                   SECTION V
                      CONFIDENTIALITY AND NONCOMPETITION

     Except as required by law, Grizzle agrees that he will not at any time 
communicate or divulge to, or use for his benefit, or for the benefit of any 
other person, firm, association, or corporation, any information concerning 
Employer's business activities, including, without limitation, financial 
projections and models, costs and sales data, marketing plans and programs, 
customer lists, loans and deposit information, and methods of operations, or 
other confidential matters possessed, owned or used by Employer that have been 
or may be communicated to, acquired by, or learned of by him in the courts of or
as a result of his employment with Employer. All records, files, memoranda, 
reports, loan lists, customer and depositor information, drawings, plans, 
sketches, documents, equipment and other similar information relating to the 
business of Employer, which Grizzle shall develop, create, use, prepare, or come
into contact with shall remain the sole property of Employer, and shall be 
returned to them not later than the termination of Grizzle's employment.

     Nothing herein shall restrict Grizzle's use of his personal knowledge, 
training, contacts, and experience as a banker in his business activities or in 
any subsequent employment. Nevertheless, Grizzle agrees that he shall not 
directly or indirectly solicit, as a member of management or a loan or lending 
officer, for a competitor of Employer (defined as any commercial bank, savings 
institution or credit union doing business in Bartow County Georgia) any 
individual or entity who was a customer of Employer during Grizzle's term of 
employment hereunder or for three (3) years after his employment ends. The 
parties agree that the term of this noncompetition provision is reasonable and 
is in pari materia with the term of this contract. The provisions of this 
paragraph shall survive the expiration or termination of this Agreement. All 
references to Employer in this paragraph shall be deemed to include all parents,
subsidiaries, and other affiliates thereof.

     In the event of an actual or threatened breach by Grizzle of the provisions
of this Article V, Employer shall be entitled to an injunction restraining the 
actions of Grizzle and requiring compliance with such provisions. Injunctive 
relief shall be in addition to, and no in lieu of, any other remedies which may 
be available to Employer for such breach or threatened breach.

                                       3

<PAGE>
 
                                  SECTION VI
                                  TERMINATION

          (a)  TERMINATION WITH CAUSE. Employer may terminate this Agreement for
               ----------------------                         
               cause pursuant to notice in writing to Grizzle, specifying such
               cause with reasonable particularity. Grizzle shall have ten (10)
               days from receipt thereof in which to cure the act or omission
               complained of, unless the act of omission of its very nature
               cannot be cured. If no cure has been or can be effected within
               the time allowed, this Agreement shall thereupon terminate.

          For purposes hereof, "cause" shall be limited to:

               (i)    Any material act of self-dealing between Employer and
                      Grizzle which is not disclosed in full to, and approved
                      by, the Board of Directors of Employer;


               (ii)   Deliberate falsification by Grizzle of any records or 
                      reports;

               (iii)  Fraud on the part of Grizzle against the Employer or any 
                      subsidiary of affiliate;

               (iv)   Alcohol or drug dependency on the part of Grizzle;
     
               (v)    Theft, embezzlement, or misappropriation by Grizzle of any
                      funds of Employer, or conviction of any felony

               (vi)   Execution of any document transferring, or creating any
                      material liens or encumbrance on, any material property of
                      Employer, not in the ordinary course of business, without
                      authorization of the Board of Directors of Employer; or

     In the event of Grizzle's termination for cause, all compensation and 
benefits due under this Agreement shall terminate 30 days from the effective
date of termination.

          (b)  TERMINATION BY GRIZZLE.  Grizzle may terminate this Agreement
               ----------------------
               upon ninety (90) days written notice to the Board of Directors of
               Employer. In such event, all compensation and benefits due under
               this Agreement shall terminate on the effective date of
               termination.

          (c)  TERMINATION BY DEATH. The Agreement shall automatically terminate
               --------------------
               upon the death of Grizzle. In such event, all compensation and
               benefits due under this Agreement shall terminate on Grizzle's
               death.

                                       4
<PAGE>
 
     (d)  TERMINATION BY RETIREMENT. This Agreement shall automatically
          -------------------------
          terminate upon Grizzle's 65th birthday. In such event, all
          compensation and benefits due under this Agreement shall terminate on
          Grizzle's retirement.

     (e)  TERMINATION FOR DISABILITY. Employer may terminate this Agreement in
          --------------------------
          the event that Grizzle shall, during the term of this Agreement,
          become permanently disabled as defined in this section. Such option
          shall be exercised by Employer giving notice in writing to Grizzle of
          Employer's intention to terminate this Agreement on the last day of
          the month in which the notice is so mailed, with the same force and
          effect as if such last day of the month were the date originally set
          forth in this Agreement as the termination date of this Agreement. In
          such event, all compensation and benefits due under this Agreement
          shall terminate on the date of termination.

          For the purposes of this Agreement, Grizzle shall be deemed to have
          become permanently disabled, if, during any year of the term of this
          Agreement, because of ill health, physical or mental incapacity he is
          prevented from performing the minimum requirements of his position.
          
     (f)  EFFECT OF TERMINATION ON VESTED BENEFITs. Notwithstanding anything
          ----------------------------------------
          contained in this Agreement, Grizzle's termination of employment shall
          not effect the Employer's liability for the payment of vested benefits
          pursuant to individual contracts or state or federal law requiring the
          payment of such benefits.

     (g)  RIGHTS OF BOARD OF DIRECTORS. Notwithstanding anything contained in
          ----------------------------
          this Agreement, the Employer's Board of Directors retains its
          statutory right and obligation to remove Grizzle from office at any
          time, whenever in its judgment the best interests of the Employer will
          be served thereby, without prejudice to any contractual right herein.


                                  SECTION VII
                        AGREEMENTS OUTSIDE OF CONTRACT

     This Agreement contains the complete agreement concerning the employment 
arrangement between the Parties and shall, as of the effective date hereof, 
supersede all other agreements between the Parties. The Parties stipulate that 
neither of them has made any representation with respect to the subject matter 
of this Agreement or any representations including the execution and delivery of
this Agreement except such representations as are specifically set forth in this
Agreement and each of the parties acknowledges that he or it has relied on its 
own judgment in entering into this Agreement. The Parties further acknowledge 
that any payments or representations that may have been made by either of them 
to the other prior to the date of executing this 

                                       5




<PAGE>
 
Agreement are of no effect and that neither of them has relied thereon in 
connection with his or its dealings with the other.

                                  SECTION VIII
                           MODIFICATION OF AGREEMENT

     Any modification of this Agreement or additional obligation assumed by 
either Employer and Grizzle in connection with this Agreement shall be binding 
only if evidenced in writing signed by each them or an authorized representative
of each them.

                                  SECTION IX
                         EFFECT OF PARTIAL INVALIDITY

     The invalidity of any portion of this Agreement will not and shall not be 
deemed to affect the validity of any other provision. In the event that any 
provision of this Agreement is held to be invalid, the Parties agree that the 
remaining provisions shall be deemed to be in full force and effect as if they 
had been executed by both parties subsequent to elimination of the invalid 
provision.

                                   SECTION X
                                 CHOICE OF LAW

     It is the intention of the Parties that this Agreement and the performance 
under this Agreement, and all suits and special proceedings under this 
Agreement, be construed in accordance with and under and pursuant to the laws of
the State of Georgia and that in any action, special proceeding or other 
proceeding that may be brought arising out of, in connection with, or by any 
reason of this Agreement, the laws of the State of Georgia shall be applicable 
and shall govern to the exclusion of the law of the forum, without regard to the
jurisdiction in which any action or special proceeding may be instituted.

                                  SECTION XI
                                   NO WAIVER

     The failure of either Employer or Grizzle to insist upon the performance of
any of the terms and conditions of this Agreement, or the waiver of any breach 
of any of the terms and conditions of this Agreement, shall not be construed as 
thereafter waiving any such terms and conditions, but the same shall continue 
and remain in full force and effect as if no such forbearance or waiver had 
occurred.

                                  SECTION XII
                                 ATTORNEY FEES

     In the event that any action is filed in relation to this Agreement, the 
unsuccessful party in the action shall pay to the successful party, in addition 
to all the sums that either party may be called on to pay, a reasonable sum for 
the successful party's attorney's fees.

                                       6
<PAGE>
 
                                 SECTION XIII
                              PARAGRAPH HEADINGS


     The title to the paragraphs of this Agreement are solely for the 
convenience of the parties and shall not be used to explain, modify, simplify, 
or aid in the interpretation of the provisions of this Agreement.

     IN WITNESS WHEREOF, the Parties now duly execute this Agreement.


                                        FIRST COMMUNITY BANK & TRUST


March 23, 1998                          BY: /s/ J. Steven Walraven
-----------------------                    -----------------------------
DATE      
                                        AS ITS:  President & CEO
                                               -------------------------

March 23, 1998                          /s/ Rodney L. Grizzle
-----------------------                 --------------------------------
DATE                                    RODNEY L. GRIZZLE

                                       7
<PAGE>
 
                                  APPENDIX B
                                  ----------


Annual base salary effective March 23, 1998                        $70,000
                             --------------


                                   EMPLOYER 
                                   FIRST COMMUNITY BANK & TRUST


MARCH 23, 1998                     BY: /s/ J. Steven Walraven
------------------------              ------------------------------
DATE
                                   AS ITS:  President & CEO
                                          --------------------------


                                   GRIZZLE


MARCH 23, 1998                     /s/ Rodney L. Grizzle
------------------------           ---------------------------------
DATE                               RODNEY L. GRIZZLE