<PAGE>   1
                                                                    EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

This Employment Agreement (the Agreement) by and among Summit Brokerage
Services, Inc., (the Company) its subsidiaries, and any successor company,
currently at 25 Fifth Avenue, Indialantic, FL 32903 and Mark F. Caulfield
(Caulfield) currently having an address at 335 Spoonbill Lane, Melbourne Beach,
FL 32951.

                                   WITNESSETH

WHEREAS, the Company and Caulfield wish to set forth the terms and conditions
upon which Caulfield shall be employed by the Company.

NOW, THEREFORE, IN consideration of the mutual covenants and agreements set
forth herein and for other goods and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         1.       TERM. Caulfield has been, and shall be, employed by the
                  Company for the period of January 1, 1998 through December 31,
                  2001, unless sooner terminated in accordance with the terms of
                  this Agreement (such period referred to as the Term). There
                  will be two consecutive optional two-year terms. Each optional
                  year will need the approval of the Company and Caulfield. This
                  Agreement is conditioned upon the change of control of Summit
                  Brokerage Services, Inc.

         2.       POSITIONS. During the Term, Caulfield shall serve as the Chief
                  Financial Officer of Summit Brokerage Services, Inc. and its'
                  subsidiaries and holding companies, and shall perform such
                  duties as shall be delegated to him by the Chairman and Chief
                  Executive Officer, and the Board of Directors of that company.
                  Caulfield will be responsible for all day to day financial
                  operations of the company, including the broker-dealer, all
                  insurance activities, registered investment advisor
                  activities, and related company activities. Any interference
                  with Caulfield in carrying out such duties by any other
                  employee or officer or Board member or combination thereof
                  who/which knowingly may cause Caulfield or the Company to in
                  any way to violate any securities, insurance or investment
                  advisory regulations , rules or laws shall be a breach of this
                  contract and shall cause immediate payment of any and all
                  compensation and stock options to Caulfield. After such
                  payment, Caulfield shall render a written resignation
                  resigning all positions with any and all affiliated companies
                  of Summit Brokerage Services, Inc. or its successors.

         3.       COMPENSATION. In the year 2000, Caulfield shall receive an
                  annual salary of $60,000. This salary will be increased in the
                  second year and each year thereafter by $5,000 annually.
                  Caulfield shall receive perquisites as may be directed by the




                                                                     Page 1 of 3
<PAGE>   2

                  Board of Directors. In order to provide Caulfield with
                  additional liquidity, the Company also guarantees to purchase
                  a minimum of $5,000 of Caulfield's Company stock each year,
                  based upon the then current market closing price for the
                  day(s) which will be at Caulfield's discretion.

         4.       EXPENSES. During the Term, Caulfield shall be entitled to
                  prompt reimbursement of all business expenses in accordance
                  with the Company's policy for such reimbursement. In the event
                  of relocation the company will pay all such relocation
                  expenses inclusive of any Realtor's fees in the sale of
                  Caulfield's current residence plus all closing costs on the
                  purchase of a new residence. Additionally all interim housing
                  expenses between such relocation and the location in a new
                  residence.

         5.       STOCK OPTIONS. On the date hereof the Company grants to
                  Caulfield 160,000 options, exercisable for shares of the
                  Company's common stock. Options will be granted each year
                  thereafter at a rate of 50,000 shares annually. The exercise
                  price for all options shall be $2.50. Exercise of the options
                  may be done on a cashless basis through the company or through
                  any securities broker dealer.

         6.       VESTING OF OPTIONS. The above options shall vest as granted.
                  Should a change of control of the Company take place during
                  the term, all options will automatically be 100% vested and
                  thereby exercisable. The expiration date of each option shall
                  be five years after the later of the end of the term or
                  Caulfield's last year of employment with the firm.

         7.       CHANGE OF CONTROL. In the event Caulfield is terminated in
                  connection with a "change in control" of the Company,
                  Caulfield shall receive a lump sum payment equal to one year
                  of his compensation as described in #3 above, (at the annual
                  rate, inclusive of all increases through the end of the Term,)
                  and all options which were granted as described in #5 above. A
                  change in control shall mean any sale, merger, transfer stock
                  exchange or acquisition of the Company, in which Caulfield's
                  position is either terminated or changed.

         8.       BENEFIT PLANS. Caulfield shall be entitled to participate in
                  the Company's benefit plans in the same manner and subject to
                  the same terms and conditions as the other senior executives
                  of the company.

         9.       TERMINATION. (A) The Company may terminate this Agreement at
                  any time for "Cause." For purposes of this Agreement, "Cause"
                  shall mean the following (i) if Caulfield has persistently and
                  willfully failed to devote substantially all of his working
                  time to the operations of the Company, after specific notice
                  has been given to Caulfield of such alleged failure and a 20
                  day opportunity has been given but nothing has been
                  accomplished to cure such failure (ii) if Caulfield is
                  indicted of any criminal offense involving a violation of any
                  federal or state securities laws, embezzlement, fraud,
                  wrongful taking of property involving the Company




                                                                     Page 2 of 3
<PAGE>   3

                  or any subsidiary or its customers. All options and bonuses if
                  payable will be placed in escrow and be null and void if
                  convicted (iii) violation or breach of this Agreement not
                  corrected within 20 days after notice of same.

                  (a)      In the event this Agreement shall be terminated by
                           the Company for any reason other than pursuant to
                           Section 9(a), Caulfield shall be entitled to receive
                           all payments and benefits to which he was entitled
                           pursuant to this Agreement to the end of the term or
                           one year whichever is shorter.

                  (b)      Should Caulfield be terminated as per (a) above, he
                           agrees to not compete with or be engaged in the same
                           business as the Company for the remainder of the Term
                           with the exception that he will be allowed to become
                           registered with a securities firm and be insurance
                           licensed as per regulatory requirements.

                  (c)      For a period of three years following termination
                           from the Company, Caulfield will not recruit or allow
                           to join a firm Caulfield is associated with, any
                           employees or Independent Contractors from the
                           Company.

         10.      AUTHORITY: NO CONFLICT. Caulfield and the Company each
                  represent and warrant that (A) each has the full power and
                  authority to enter into this Agreement and to perform each of
                  their obligations hereunder, and (B) the execution, delivery
                  and performance by Caulfield and the Company of this Agreement
                  will neither (i) violate conflict with, or result in any
                  breach of any contract or other Agreement by Caulfield or the
                  Company nor (ii) violate any law, statute, or other
                  requirement of any government body.

         11.      MISCELLANEOUS. This Agreement (i) contains the entire
                  understanding of the parties with respect to the subject
                  matter hereof and supercedes all prior agreements of the
                  parties, written or oral, of any nature whatsoever, (ii) shall
                  be binding upon and shall inure to the benefit of the parties
                  hereto and their respective successors and (iii) shall be
                  governed by the laws of the state of Florida, without giving
                  effect to the conflicts of law provisions thereof.

Accepted and agreed to by the undersigned on this 16th day of May, 2000.

SUMMIT BROKERAGE SERVICES, INC.

/s/ Richard Parker
-------------------------------
Richard Parker, Chairman and                /s/
Chief Executive Officer                         --------------------------------
                                                Witness
/s/ Mark F. Caulfield                        /s/
-------------------------------                 --------------------------------
Mark F. Caulfield                               Witness










                                                                     Page 3 of 3