Document:

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                                                                   EXHIBIT 10.2

                           SECOND AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT
                                 BY AND BETWEEN
                                  MADISON BANK
                                       AND
                             ROBERT B. MCGIVNEY, JR.

        THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is
being entered into this 22nd day of June, 2000, by and between MADISON BANK, a
Florida chartered commercial bank ("Employer" or "Bank") and ROBERT B. MCGIVNEY,
JR. ("Employee"). Employer and Employee are collectively referred to herein as
the "Parties".

                                    RECITALS

        WHEREAS, on June 16, 1997, the Parties entered into an Amended and
Restated Employment Agreement; and

        WHEREAS, since that time, the Bank has changed its organizational form
from that of a Florida-chartered savings association to that of a
Florida-chartered commercial bank and in conjunction therewith, changed its
corporate name from Madison Bank, A Savings Bank to Madison Bank; and

        WHEREAS, the Bank wishes to continue to retain Employee as its President
and Chief Executive Officer to perform the duties and responsibilities as
described in this Agreement and as the Bank's Board of Directors ("Board") may
assign to Employee from time to time; and

        WHEREAS, Employee desires to continue his employment with the Bank and
to continue to serve as the Bank's President and Chief Executive Officer in
accordance with the terms and provisions of this Agreement; and

        WHEREAS, the Parties wish to amend and restate the Amended and Restated
Employment Agreement.

        NOW, THEREFORE, in consideration of the mutual agreements contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereto represent, warrant, undertake,
covenant and agree as follows:

                                 OPERATIVE TERMS

        1. EMPLOYMENT AND TERM. The Bank shall employ Employee and Employee
shall be employed pursuant to the terms of this Agreement to perform the
services specified in Section 2 herein. The initial term of employment shall be
for a period of 24 months, commencing on January 1, 2000 (the "Effective Date").
Upon each new day of the 24 month period of employment from the Effective Date
until the Employee's 65th birthday, the term of this Agreement shall be
automatically extended for one additional

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day, to be added to the end of the then-existing 24 month term. Accordingly, at
all times prior to (i) the employee's attaining age 65 and (ii) a notice of
employment termination (or an actual termination), the term of this Agreement
shall be 24 full months. However, either Party may terminate this Agreement by
giving the other Party written notice of intent not to renew. In addition, if
the Bank has Total Assets of $153,975,000 at December 31, 2000 and Net Income of
$993,000 for the period January 1, 2000 to December 31, 2000, determined
pursuant to Section 3(b)(i) and (ii), respectively, Employee shall have the
option to increase the standard term of this Agreement by 12 months, so that at
all times the term of this Agreement shall be 36 months. Employee shall have 90
days from the end of the year 2000 in which to notify the Board that he has
chosen to exercise this option.

        The Board shall, on an annual basis, review Employee's performance and
this Agreement. The automatic extensions of the term of this Agreement shall
immediately be suspended upon an employment termination by reason of death or
disability or retirement, or an employment termination made voluntarily by the
Employee (other than for Good Reason as defined in Section 9[d], or
involuntarily for Cause as defined in Section 9[b]).

        2. POSITION, RESPONSIBILITIES AND DUTIES. During the term of this
Agreement, Employee shall serve in the following capacities and shall fulfill
the following responsibilities and duties:

           (a) SPECIFIC DUTIES: Employee shall serve as the Bank's President and
        Chief Executive Officer, through election by the Board. In such
        capacity, Employee shall have the same powers, duties and
        responsibilities of supervision and management of the Bank usually
        accorded to the President and Chief Executive Officer of similar
        financial institutions. In addition, Employee shall use his best efforts
        to perform the duties and responsibilities enumerated in this Agreement
        and any other duties assigned to Employee by the Board and to utilize
        and develop contacts and customers to enhance the business of the Bank.
        Specifically, Employee shall devote his full business time and attention
        and use his best efforts to accomplish and fulfill the following duties
        and responsibilities, as well as other duties assigned to Employee from
        time to time by the Board:

               (i)    build and maintain a high quality management team;

               (ii)   build and manage the Bank's branch network;

               (iii)  manage Bank personnel and reduce employee turnover;

               (iv)   serve as a member of the Board of Directors, if and when
                      elected to such a position;

               (v)    serve on such committees as appointed by the Board from
                      time to time;

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               (vi)   keep the Board informed of important developments
                      concerning the Bank, industry developments and regulatory
                      initiatives affecting the Bank;

               (vii)  supervise all commercial loans and assist in their proper
                      servicing and resolution;

               (viii) establish and implement marketing efforts to increase the
                      business of the Bank;

               (ix)   coordinate with the Bank's attorneys and accountants and
                      other service providers to the extent necessary to further
                      the business of the Bank, keeping in compliance with
                      government laws and regulations and otherwise keeping the
                      Bank in as good a financial and legal posture as possible;
                      and

               (x)    maintain adequate expense records relating to Employee's
                      activities on behalf of the Bank;

               (xi)   conduct and undertake all other activities,
                      responsibilities, and duties normally expected to be
                      undertaken and accomplished by the President and Chief
                      Executive Officer of a financial institution similar in
                      scope and operation to the Bank's business.

           (b) GENERAL DUTIES: During the term of this Agreement, and except for
        illness, vacation periods and leaves of absences, Employee shall devote
        all of his working time, attention, skill and best efforts to accomplish
        and faithfully perform all of the duties assigned to Employee on a
        full-time basis. Employee shall, at all times, conduct himself in a
        manner that will reflect positively upon the Bank. Employee shall obtain
        such licenses, certificates, accreditations and professional memberships
        and designations as the Bank may reasonably require. Employee shall join
        and maintain membership in such social and civic organizations as
        Employee or the Board deems appropriate to foster the Bank's contacts
        and business network in the community.

        3. COMPENSATION. During the term of this Agreement, Employee shall be
compensated as follows:

           (a) BASE SALARY: In 2000, Employee shall receive an annual salary of
        One Hundred Seventy Thousand Dollars ($170,000) (the "Base Salary"), to
        be paid in equal installments, in accordance with the Bank's standard
        payroll practices. In 2001, the Base Salary shall be increased to One
        Hundred Seventy-Five Thousand Dollars ($175,000). If the Agreement in
        extended through 2002, the Base Salary shall be increased to One Hundred
        Eighty Thousand Dollars ($180,000). Employer may adjust the Base Salary
        from time to time based upon the Board's evaluation of Employee's
        performance. In no event, however, may the Base Salary be reduced
        without Employee's written concurrence.

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           (b) BONUS: If the Bank's financial performance for that year meets or
        exceeds the below budgeted annual goals, at the end of each year,
        Employer shall pay Employee an "Aggregate Available Bonus" of
        twenty-five percent (25%) of Employee's Base Salary ($42,500 in 2000,
        $43,750 in 2001 and $45,000 in 2002). The Aggregate Available Bonus
        is comprised of three independent bonuses based on the Bank's "Total
        Assets," "Net Income," and "Net Income Over Budget" in each year, as set
        forth herein.

               (i) TOTAL ASSETS. For each year in which the Bank's Total Assets
               (as reported to the Federal Deposit Insurance Corporation
               ["FDIC"] on Schedule RC, Consolidated Report of Condition for
               December 31 of that year) meet or exceed the budgeted amount in
               Schedule A, Employee shall receive a bonus equal to 10% of the
               Aggregate Available Bonus for that year.

               If, in any year, the Bank's Total Assets do not meet or exceed
               the corresponding budgeted amount, Employee shall not be entitled
               to the corresponding bonus for that year. If in the following
               year, the Bank's Total Assets meet or exceed that year's budgeted
               amount, Employee shall be entitled to only that year's
               corresponding bonus, and not a carry-over of any earlier year's
               bonus.

                                                SCHEDULE A

<TABLE>
<CAPTION>
                                          BUDGETED
                              YEAR      TOTAL ASSETS            BONUS AMOUNT
                              ----------------------------------------------
<S>                                     <C>                     <C>
                              2000       $153,975,000             $ 4,250
                              2001        182,042,000               4,375
                              2002        213,039,000               4,500
</TABLE>

               (ii) NET INCOME. For each year in which the Bank's Net Income (as
               reported to the FDIC on Schedule RI, Consolidated Report of
               Income for the Period January 1 to December 31 of that year)
               meets or exceeds the budgeted amount in Schedule B, Employee
               shall receive a bonus equal to 15% of the Aggregate Available
               Bonus for that year.

               If in any year, the Bank's Net Income does not meet or exceed the
               corresponding budgeted amount, Employee shall not be entitled to
               the corresponding bonus in that year. However, that year's bonus
               will be recovered and paid to Employee, if any following year's
               budgeted Cumulative Net Income (determined by adding that
               following year's budgeted Net Income to the previous years'
               budgeted Net Income) meets or exceeds the budgeted amount in
               Schedule B.

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                                   SCHEDULE B

<TABLE>
<CAPTION>
                            BUDGETED             BUDGETED
                 YEAR      NET INCOME      CUMULATIVE NET INCOME    BONUS AMOUNT
                 ---------------------------------------------------------------
<S>                       <C>              <C>                      <C>
                 2000     $   993,000               n/a                $ 6,375
                 2001       1,384,000            $2,377,000              6,563
                 2002       2,010,000             4,387,000              6,750
</TABLE>

               (iii) NET INCOME OVER BUDGET. For each year in which the Bank's
               Net Income meets or exceeds the above budgeted amount, Employee
               shall receive a bonus of 10% of the Bank's Net Income over the
               above budgeted amount. However, the amount of this bonus shall be
               limited to 75% of the Aggregate Available Bonus for that year a
               shown as shown in Schedule C.

               If in any year, Employee does not earn the full bonus hereunder,
               the unawarded portion may be earned in a later year. This
               recovery shall occur by increasing the amount of this bonus that
               may be earned in that later year by the amount that was not
               earned in a previous year.

                                   SCHEDULE C

<TABLE>
<CAPTION>
                        BUDGETED   AMOUNT OVER BUDGET  NET INCOME FOR     MAXIMUM
               YEAR    NET INCOME  FOR MAXIMUM BONUS    MAXIMUM BONUS      BONUS
<S>                   <C>          <C>                 <C>              <C>
               2000   $  993,000      $ 319,000         $ 1,312,000     $  31,875
               2001    1,384,000        328,000           1,712,000        32,813
               2002    2,010,000        338,000           2,348,000        33,750
</TABLE>

           (c) STOCK OPTIONS: On the Effective Date, Employer shall grant
        Employee options to purchase 30,000 shares of the common stock of the
        Bank, in accordance with the terms of its 1998 Key Employee Stock
        Compensation Program ("Stock Program"). These options shall vest in five
        (5) equal installments, beginning on July 1, 2000, and continuing on
        each subsequent July 1, until July 1, 2004. The first installment shall
        expire on July 1, 2008, the second installment shall expire on July 1,
        2009 and the remaining installments shall expire on July 1, 2010. The
        exercise price of the options shall be the Fair Market Value (as
        determined pursuant to the Stock Program) of the Bank's common stock on
        the Effective Date.

           (d) STOCK AND OTHER BENEFIT PLANS: During the term of this Agreement,
        the Employee will be entitled to participate in and receive the benefits
        of any stock option plans (including, but not limited to the Stock
        Program), stock ownership plans, profit-sharing plans, 401(k) plans,
        deferred compensation plans, or other plans, benefits and privileges
        given to employees and executives of the Bank which are currently in
        effect at the execution of this Agreement or which may come into
        existence thereafter to the extent the Employee is otherwise eligible
        and qualifies to so participate in and receive such benefits or
        privileges. The Bank shall not make any changes in such plans, benefits
        or privileges which would adversely affect the Employee's

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        rights or benefits thereunder, unless such change occurs pursuant to a
        program applicable to all executive officers (Vice President or above)
        of the Bank and does not result in a proportionately greater adverse
        change in the rights of or benefits to the Employee as compared with any
        other executive officer of the Bank. Nothing paid to the Employee under
        any plan or arrangement presently in effect or made available in the
        future shall be deemed to be in lieu of the Base Salary payable to the
        Employee pursuant to Section 3 herein.

        4. PAYMENT OF BUSINESS EXPENSES. Employee is authorized to incur
reasonable expenses in performing his duties. Employer will reimburse Employee
for authorized expenses, according to the Bank's established policies, promptly
after Employee's presentation of an itemized account of such expenditures.

        5. VACATION. Employee is entitled to four (4) weeks paid vacation per
year, but may not take more than two (2) consecutive weeks of vacation at any
time. Employee must take at least two (2) weeks vacation in each year. In the
event Employee does not take all of his available vacation in one year, Employee
may carry over up to two (2) weeks vacation into the next year. Therefore, the
maximum vacation Employee may have available in any one year is six (6) weeks.

        6. FRINGE BENEFITS.

           (a) MEDICAL BENEFITS: Employee is entitled to participate in all
        medical and health care benefit plans through health insurance,
        corporate funds, medical reimbursement plans or other plans, if any,
        provided, or to be provided, by the Bank for its employees.

           (b) PROVISION OF AUTOMOBILE: Employer will furnish Employee with an
        automobile suitable to his position as a Bank President and will pay for
        reasonable maintenance expenses associated therewith. Employer will pay
        automobile insurance with such coverages as the Board determines to be
        appropriate.

           (c) COUNTRY CLUB MEMBERSHIP: Employer will pay for a full membership
        for Employee and Employee's family at the Countryside Country Club.
        Employer shall establish such policies and procedures in order for
        Employee to comply with applicable federal income tax laws and
        regulations governing Employee's personal use of the country club in
        order to reduce the amount of income that may be attributable to
        Employee for the use of such facilities. Employee will comply with the
        policies and procedures established by Employer in this regard.

        7. DISABILITY/ILLNESS.

           (a) ILLNESS: Employee shall be paid his full Base Salary for any
        period of his illness or incapacity: provided that such illness or
        incapacity does not render Employee unable to perform his duties under
        this Agreement for a period longer than three (3) consecutive months. At
        the end of such three-month period, Employer may terminate Employee's
        employment and this Agreement.

           (b) DISABILITY: If Employer terminates this Agreement pursuant to
        Employee's disability as determined under Section 7(a) herein, Employer
        shall pay to Employee, as a disability

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        payment, an amount equal to Employee's monthly Base Salary, payable in
        accordance with Employer's standard payroll practices, commencing on the
        effective date of Employee's termination and ending on the earlier of:

               (i)    the date Employee returns to full time employment in his
                      capacity as the Bank's President;

               (ii)   Employee's full time employment by another employer;

               (iii)  three (3) months after the date of such termination, after
                      which Employee will be entitled to receive benefits under
                      any disability insurance plan provided by the Bank; or

               (iv)   the date of Employee's death.

        Employer may satisfy its obligations under this Section of this
        Agreement, at its option, through the purchase of disability insurance.
        The provisions of such policy will control the amounts paid to Employee.
        Such disability insurance will be coordinated with any disability plans
        made available to Employee pursuant to Section 6 of this Agreement.

           (c) CONTINUATION OF COVERAGES: During any period of illness or
        disability, Employer will continue any other life, health and disability
        coverages for Employee substantially identical to the coverages
        maintained prior to Employee's termination for disability. Such
        coverages shall cease upon the earlier of:

               (i)    Employee's full time employment by another employer;

               (ii)   one (1) year after the date of such termination (with the
                      exception of disability insurance coverage); or

               (iii)  the date of Employee's death.

           (d) NO REDUCTION IN BASE SALARY: During the period in which Employee
        is disabled or subject to illness or incapacity, other than as described
        in Section 7(b) herein, there shall be no reduction in Employee's Base
        Salary.

        8. DEATH DURING EMPLOYMENT. In the event of Employee's death during the
term of this Agreement, the Bank's obligation to Employee shall be limited to
the portion of Employee's compensation that would be payable up to the first
working day of the first month after Employee's death, except that any
compensation payable to Employee under any benefit plan maintained by the Bank
will be paid pursuant to its terms and a pro rata portion of any bonus that
would have become payable under Section 3(b) of this Agreement shall be paid to
Employee's estate.

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        9. TERMINATION.

           (a) ILLNESS, INCAPACITY OR DEATH: This Agreement shall terminate upon
        Employee's illness, incapacity or death in accordance with the
        provisions of Sections 7 and 8 herein.

           (b) TERMINATION FOR JUST CAUSE: The Employer shall have the right, at
        any time, upon prior written notice of termination satisfying the
        requirements of Section 11 herein, to terminate the Employee's
        employment hereunder, including termination for just cause. For the
        purpose of this Agreement, termination for just cause shall mean
        termination for personal dishonesty, incompetence, willful misconduct,
        material breach of fiduciary duty, intentional failure to perform the
        duties stated in this Agreement, willful violation of any law, rule or
        regulation (other than traffic violations or similar offenses), willful
        violation of a final cease-and-desist order, willful or intentional
        breach or negligence or misconduct in the performance of such duties or
        material breach of any provision of this Agreement as determined by a
        court of competent jurisdiction or in final agency action by a federal
        or state regulatory agency having jurisdiction over the Bank. For
        purposes of this Section, no act, or failure to act, on the Employee's
        part shall be considered "willful" unless done, or omitted to be done,
        by him not in good faith and without reasonable belief that his action
        or omission was in the best interest of Employer; provided that any act
        or omission to act by the Employee in reasonable reliance upon an
        opinion of counsel to Employer shall not be deemed to be willful. In the
        event Employee is terminated for just cause, Employee shall have no
        right to compensation or other benefits for any period after such date
        of termination.

           (c) INVOLUNTARY TERMINATION: If the Employee is terminated by
        Employer other than for just cause or in connection with a change in
        control of the Bank (as defined in Section 9[e] herein), Employee's
        right to compensation and other benefits under this Agreement shall be
        as set forth in Sections 9(f)(i) and 9(g) herein. In the event the
        Employee is terminated by Employer in connection with a change in
        control of the Bank, Employee's right to compensation and other benefits
        under this Agreement shall be as set forth in Sections 9(f)(ii),
        9(f)(iii) and 9(h) herein.

           (d) TERMINATION FOR GOOD REASON: Employee may terminate his
        employment hereunder for good reason. For purposes of this Agreement,
        "good reason" shall mean (i) a failure by the Bank to comply with any
        material provision of this Agreement, which failure has not been cured
        within thirty (30) days after a notice of such noncompliance has been
        given by the Employee to the Bank; or (ii) subsequent to a change in
        control as defined in Section 9(e) herein and without the Employee's
        express written consent, any of the following shall occur: the
        assignment to the Employee of any duties inconsistent with the
        Employee's positions, duties, responsibilities and status with the Bank
        immediately prior to a change in control of the Bank; a change in the
        Employee's reporting responsibilities, titles or offices as in effect
        immediately prior to a change in control of the Bank; any removal of the
        Employee from, or any failure to re-elect the Employee to, any of such
        positions, except in connection with a termination of employment for
        just cause, disability, death, or removal pursuant to Sections 9(a) or
        9(b) herein; a reduction by the Bank in the Employee's Base Salary as in
        effect immediately prior to a change in control; the failure of the Bank
        to continue in effect any bonus, benefit or compensation plan, life
        insurance plan, health and accident plan or disability plan in which the
        Employee is participating at the time of a change in

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        control of the Bank, or the taking of any action by the Bank which would
        adversely affect the Employee's participation in or materially reduce
        the Employee's benefits under any of such plans, or the transfer of the
        Employee to any location outside of Pinellas County, Florida or the
        assignment of substantial duties to the Employee to be completed outside
        Pinellas County, Florida.

           (e) CHANGE IN CONTROL: For purposes of this Agreement, "change in
        control" shall mean a change in ownership of stock in the Bank whereby a
        person, other than an existing Bank shareholder: (i) acquires more than
        25% of any class of voting stock of the Bank through direct or indirect
        ownership or proxy; or (ii) controls in any manner the election of a
        majority of the directors of the Bank.

           (f) SEVERANCE PAYMENT:

               (i) If Employee terminates his employment for good reason as
           defined in Section 9(d) herein, or if the Employee is terminated by
           the Bank for other than just cause pursuant to Section 9(c) herein,
           then in lieu of any further payments to the Employee for periods
           subsequent to the date of termination, the Employee shall be paid, as
           severance, an amount which would equal the Employee's total annual
           compensation for the remainder of the term of the Agreement, plus a
           pro rata portion of any bonus that would have become payable under
           Section 3(b) of this Agreement;

               (ii) In the event Employee's employment is terminated as a result
           of a change in control, Employee shall be entitled to a severance
           payment equal to two and one-half (2.5) times his current annual Base
           Salary, plus a pro rata portion of any bonus that would have become
           payable under Section 3(b) of this Agreement;

               (iii) In the event a change in control of the Bank occurs within
           nine (9) months of the Employees' involuntary termination or
           termination for good reason, Employee shall be entitled to a
           supplemental severance payment, so that Employee's total severance
           payments under this Section 9(f) shall be equal to two and one-half
           (2.5) times his annual Base Salary at the time of the termination.

              Any payment under Section 9(f)(i), (ii) or (iii) shall be made in
        substantially equal semi-monthly installments on the fifteenth and last
        days of each month until paid in full.

           (g) ADDITIONAL SEVERANCE BENEFITS: Unless the Employee is terminated
        for just cause pursuant to Section 9(b) herein, pursuant to Section
        10(b) herein, or pursuant to a termination of employment by the Employee
        for other than good reason, the Bank shall maintain in full force and
        effect, for the continued benefit of the Employee for the remaining term
        of this Agreement, or twelve (12) months (whichever is longer), all
        employee benefit plans and programs in which the Employee was entitled
        to participate immediately prior to the date of termination; provided,
        however, that the Employee's continued participation is possible under
        the general terms and provisions of such plans and programs. Further,
        the Bank shall pay for the same or similar

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        benefits if such benefits are available to the employee on an individual
        or group basis as a result of contractual or statutory provisions
        requiring or permitting such availability including, but not limited to,
        health insurance covered under COBRA.

           (h) MITIGATION: Employee shall not be required to mitigate the amount
        of any payment provided for in Sections 9(f) and 9(g) of this Agreement
        by seeking other employment or otherwise.

       10. REQUIRED PROVISIONS BY REGULATION. The Bank and Employee acknowledge
that the laws and regulations governing the Parties require that certain
provisions be provided in each employment agreement with officers and employees
of the Bank. The Parties agree to be bound by the following provisions:

           (a)    SUSPENSION/TEMPORARY PROHIBITION: If the Employee is suspended
                  and/or temporarily prohibited from participating in the
                  conduct of the Bank's affairs by a notice served under Section
                  655.037, Florida Statutes, or under Section 8(e) or (g)(1) of
                  the Federal Deposit Insurance Act (12 U.S.C.ss.1818[e][3] and
                  [g][1]), the Bank's obligations under this Agreement shall be
                  suspended as of the date of such service unless stayed by
                  appropriate proceedings. If the shares and the notice are
                  dismissed, the Bank may in its discretion: If Employee is
                  suspended from office and/or temporarily prohibited from
                  participating in the conduct of the Bank's affairs pursuant to
                  notice served under Section 8(e)(3) or Section 8(g)(1) of the
                  Federal Deposit Insurance Act ("FDIA") (12 U.S.C. Section
                  1818[e][3] and Section 1818[g][1]), the Bank's obligations
                  under this Agreement shall be suspended as of the date of
                  service, unless stayed by appropriate proceedings. If the
                  charges in the notice are dismissed, the Bank may, in its
                  discretion: (i) pay the Employee all or part of the
                  compensation withheld while the obligations under this
                  Agreement are suspended; and (ii) reinstate (in whole or in
                  part) any of the Bank's obligations which were suspended.

           (b)    PERMANENT PROHIBITION: If the Employee is removed and/or
                  permanently prohibited from participating in the conduct of
                  the Bank's affairs by an order issued under Section 655.037,
                  Florida Statutes, or Section 8(e)(4) or (g)(1) of the Federal
                  Deposit Insurance Act (12 U.S.C. ss.1818[e][4] or [g][1]), all
                  of the Bank's obligations under this Agreement shall terminate
                  as of the effective date of the order, but the Employee's
                  vested rights, if any, shall not be affected.

           (c)    DEFAULT UNDER FDIA: If the Bank is in default (as defined in
                  Section 3[x][1] of the Federal Deposit Insurance Act), all
                  obligations under this Agreement shall terminate as of the
                  date of default, but this subsection of the Agreement shall
                  not affect the Employee's vested rights, if any.

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           (d)    REGULATORY TERMINATION: All obligations under this Agreement
                  shall be terminated, except to the extent that a determination
                  has been made that continuation of this Agreement is necessary
                  for continued operation of the Bank:

                        (i)     by the Director or his or her designee, at the
                                time the FDIC enters into an agreement to
                                provide assistant to or on behalf of the Bank
                                under the authority to contained in Section
                                13(c) of the Federal Deposit Insurance Act; or

                        (ii)    by the Department or the Director, or his or her
                                designee, at the time the Department or the
                                Director, or his or her designee, approves a
                                supervisory merger to resolve problems related
                                to operation of the Bank or when the Bank's
                                determined by the Director to be in unsafe or
                                unsound condition.

                       Any of the Employee's rights that have already vested,
                       however, shall not be affected by such action. For
                       purposes of this subsection of this Agreement, the term
                       "Director" shall mean the Director of the FDIC.

        11. NOTICE OF TERMINATION.

            (a) EMPLOYEE'S NOTICE: Employee shall have the right, upon prior
        written notice of termination of not less than ninety (90) days, to
        terminate his employment hereunder. In such event, Employee shall have
        no right after the date of termination to compensation or other benefits
        as provided in this Agreement, unless such termination is for good
        reason, as defined in Section 9(d) herein. If the Employee provides a
        notice of termination for good reason, the date of termination shall be
        the date on which the notice of termination is given.

            (b) SPECIFICITY: Any termination of the Employee's employment by the
        Bank or by Employee shall be communicated by written notice of
        termination to the other party hereto. For purposes of this Agreement, a
        "notice of termination" shall mean a dated notice which shall: (i)
        indicate the specific termination provision in the Agreement relied
        upon; (ii) set forth in reasonable detail the facts and circumstances
        claimed to provide a basis for termination of the Employee's employment
        under the provision so indicated; and (iii) set forth the date of
        termination, which shall be not less than thirty (30) days nor more than
        forty-five (45) days after such notice of termination is given, except
        in the case of the Bank's termination of the Employee's employment for
        just cause, in which case date of termination shall be the date such
        notice of termination is given.

            (c) DELIVERY OF NOTICES: All notices given or required to be given
        herein shall be in writing, sent by United States first-class certified
        or registered mail, postage prepaid, by way of overnight carrier or by
        hand delivery. If to the Employee (or to the Employee's spouse or estate
        upon the Employee's death) notice shall be sent to Employee's last-known
        address, and if to Employer, notice shall be sent to the corporate
        headquarters. All such notices shall be effective

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<PAGE>   12

        when deposited in the mail if sent via first-class certified or
        registered mail, or upon delivery if by hand delivery or sent via
        overnight carrier. Either Party, by notice in writing, may change or
        designate the place for receipt of all such notices.

        12. POST-TERMINATION OBLIGATIONS. Employer shall pay to Employee such
compensation as is required pursuant to this Agreement; provided, however, any
such payment shall be subject to Employee's post-termination cooperation. Such
cooperation shall include the following:

            (i) Employee shall furnish such information and assistance as may be
        reasonably required by Employer in connection with any litigation or
        settlement of any dispute between Employer, a borrower and/or any other
        third parties (including without limitation serving as a witness in
        court or other proceedings);

            (ii) Employee shall provide such information or assistance to
        Employer in connection with any regulatory examination by any state or
        federal regulatory agency;

            (iii) Employee shall keep the Bank's trade secrets and other
        proprietary or confidential information secret to the fullest extent
        practicable, subject to compliance with all applicable laws.

       13. ATTORNEY'S FEES/ADVANCED COSTS. In the event that the Employee is
terminated in a manner which violates any provisions of this Agreement, as
determined by a court of competent jurisdiction, the Employee shall be entitled
to reimbursement for all reasonable costs, including attorneys fees, in
challenging such termination if the employee is successful in his challenge.
Further, because of economic disparity between Employer and Employee, Employer
agrees to pay for Employee's reasonable attorneys' fees and costs up to $15,000
to enforce the terms of this Agreement or recover damages for breach of this
agreement as follows: $10,000 at the commencement of litigation or the mediation
proceedings and an additional $5,000 six (6) months thereafter. In the event the
Employee is unsuccessful in his claim or defense, the Employee shall reimburse
Employer for any attorney' fees, expenses and costs that have been advanced. If
the Employee is successful, any attorneys' fee award will be reduced by the
amount of attorney's fees and costs that have been advanced. Such reimbursement
shall be in addition to all rights to which the Employee is otherwise entitled
under this Agreement.

        14. INDEBTEDNESS. If during the term of this Agreement, Employee becomes
indebted to the Bank for any reason, the Bank may, at its election, set off and
collect any sums due Employee out of any amounts which the Bank may owe Employee
from his Base Salary or other compensation. Furthermore, upon the termination of
this Agreement, all sums owed by Employee shall become immediately due and
payable. Employee shall pay all expenses and attorney's fees actually or
necessarily incurred by the Bank in connection with any collection proceeding
for Employee's indebtedness to us. Notwithstanding any of the foregoing, any
secured indebtedness to the Bank shall not be subject to the foregoing
provisions, and shall be governed by the loan documents evidencing such
indebtedness.

                                       12
<PAGE>   13

        15. MAINTENANCE OF TRADE SECRETS AND CONFIDENTIAL INFORMATION. Employee
shall use his best efforts and utmost diligence to guard and protect all of the
Bank's trade secrets and confidential information. Employee shall not, either
during the term or after termination of this Agreement, for whatever reason,
use, in any capacity, or divulge or disclose in any manner, to any Person, the
identity of the Bank's customers, or its customer lists, methods of operation,
marketing and promotional methods, processes, techniques, systems, formulas,
programs or other trade secrets or confidential information relating to the
Bank's business. Upon termination of this Agreement or Employee's employment,
for any reason, Employee shall immediately return and deliver to the Bank all
records and papers and all matters of whatever nature which bear trade secrets
or confidential information relating to the Bank.

        16. COMPETITIVE ACTIVITIES. Employee agrees that during the term of this
Agreement, except with the express consent of the Board, Employee will not,
directly or indirectly, engage or participate in, become a director of, or
render advisory or other services for, or in connection with, or become
interested in, or make any financial investment in any firm, corporation,
business entity or business enterprise competitive with or to any business of
the Bank; provided, however, that Employee shall not be precluded or prohibited
from owning passive investments, including investments in the securities of
other financial institutions, so long as such ownership does not require
Employee to devote substantial time to management or control of the business or
activities in which Employee has invested.

        17. REMEDIES FOR BREACH.

            (a) INJUNCTIVE RELIEF: The Parties acknowledge and agree that the
        services to be performed by Employee are special and unique and that
        money damages cannot fully compensate Employer in the event of
        Employee's violation of the provisions of Section 16 of this Agreement.
        Thus, in the event of a breach of any of the provisions of such Section,
        Employee agrees that Employer, upon application to a court of competent
        jurisdiction, shall be entitled to an injunction restraining Employee
        from any further breach of the terms and provision of such Section.
        Should Employer prevail in an action seeking an injunction restraining
        Employee, Employee shall pay all costs and reasonable attorneys fees
        incurred by Employer in and relating to obtaining such injunction. Such
        injunctive relief may be obtained without bond and Employee's sole
        remedy, in the event of the entry of such injunction, shall be the
        dissolution of such injunction. Employee hereby waives any and all
        claims for damages by reason of the wrongful issuance of any such
        injunction.

            (b) CUMULATIVE REMEDIES: Notwithstanding any other provision of this
        Agreement, the injunctive relief described in Section 17(a) herein and
        all other remedies provided for in this Agreement which are available to
        Employer as a result of Employee's breach of this Agreement, are in
        addition to and shall not limit any and all remedies existing at or in
        equity which may also be available to Employer.

        18. ASSIGNMENT. This Agreement shall inure to the benefit of and be
binding upon the Employee, and to the extent applicable, his heirs, assigns,
executors, and personal representatives, and to the Bank, and to the extent
applicable, its successors, and assigns, including, without limitation, any
person, partnership, or corporation which may acquire all or substantially all
of the Bank's assets and business, or with or into which the Bank may be
consolidated or merged, and this provision shall apply in the event of any
subsequent merger, consolidation, or transfer, unless such merger or
consolidation or subsequent

                                       13
<PAGE>   14

merger or consolidation is a transaction of the type which would result in
termination under Sections 10(c) and 10(d) herein.

        19. MISCELLANEOUS.

            (a) AMENDMENT OF AGREEMENT: Unless as otherwise provided herein,
        this Agreement may not be modified or amended except in writing signed
        by the Parties.

            (b) CERTAIN DEFINITIONS: For purposes of this Agreement, the
        following terms whenever capitalized herein shall have the following
        meanings:

               (i)    "Person" shall mean any natural person, corporation,
                      partnership (general or limited), trust, association or
                      any other business entity.

               (ii)   "Attorneys Fees" shall include the legal fees and
                      disbursements charged by attorneys and their related
                      travel and lodging expenses, court costs, paralegal fees,
                      etc. incurred in settlement, trial, appeal or in
                      bankruptcy proceedings.

            (c) HEADINGS FOR REFERENCE ONLY: The headings of the Sections and
        the Subsections herein are included solely for convenient reference and
        shall not control the meaning of the interpretation of any of the
        provisions of this Agreement.

            (d) GOVERNING LAW/JURISDICTION: This Agreement shall be construed in
        accordance with and governed by the laws of the State of Florida. Any
        litigation involving the Parties and their rights and obligations
        hereunder shall be brought in the appropriate federal or state courts in
        Pinellas County, Florida.

                                       14
<PAGE>   15

            (e) SEVERABILITY: If any of the provisions of this Agreement shall
        be held invalid for any reason, the remainder of this Agreement shall
        not be affected thereby and shall remain in full force and effect in
        accordance with the remainder of its terms.

            (f) ENTIRE AGREEMENT: This Agreement and all other documents
        incorporated or referred to herein, contain the entire agreement of the
        Parties and there are no representations, inducements or other
        provisions other than those expressed in writing herein. This Agreement
        amends, supplants and supersedes any and all prior agreements between
        the Parties. No modification, waiver or discharge of any provision or
        any breach of this Agreement shall be effective unless it is in writing
        signed by both Parties. A Party's waiver of the other Party's breach of
        any provision of this Agreement, shall not operate, or be construed, as
        a waiver of any subsequent breach of that provision or of any other
        provision of this Agreement.

            (g) WAIVER: No course of conduct by Employer or Employee and no
        delay or omission of Employer or Employee to exercise any right or power
        given under this Agreement shall: (i) impair the subsequent exercise of
        any right or power, or (ii) be construed to be a waiver of any default
        or any acquiescence in or consent to the curing of any default while any
        other default shall continue to exist, or be construed to be a waiver of
        such continuing default or of any other right or power that shall
        theretofore have arisen. Any power and/or remedy granted by law and by
        this Agreement to any party hereto may be exercised from time to time,
        and as often as may be deemed expedient. All such rights and powers
        shall be cumulative to the fullest extent permitted by law.

            (h) PRONOUNS: As used herein, words in the singular include the
        plural, and the masculine include the feminine and neuter gender, as
        appropriate.

            (i) RECITALS: The Recitals set forth at the beginning of this
        Agreement shall be deemed to be incorporated into this Agreement by this
        reference as if fully set forth herein, and this Agreement shall be
        interpreted with reference to and in light of such Recitals.

        IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the day and year first written above.

                                    MADISON BANK

/s/ ROBERT B. McGIVNEY              BY: /s/ MELVIN S. CUTLER
---------------------------------       ----------------------------------------
Robert B. McGivney, Jr., Employee          Melvin S. Cutler,
                                           Chairman of the Board
                                           (By resolution of the Board)

/s/ ARLENE V. PHILLIPS                  /s/ ARLENE V. PHILLIPS
---------------------------------       ----------------------------------------
Witness                                 Witness

                                       15<PAGE>   1
                                                                   EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT
                                 BY AND BETWEEN
                                  MADISON BANK
                                       AND
                                 DAVID PAETZOLD

        THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into this 31st day of
May 2000, by and between MADISON BANK, a Florida chartered commercial bank (the
"Employer" or the "Bank") and David Paetzold ("Employee"). Employer and Employee
are collectively referred to herein as the "Parties."

                                    RECITALS

        WHEREAS, the Bank wishes to retain Employee as its Executive Vice
President/Senior Loan Officer to perform the duties and responsibilities as are
described in this Agreement and as the Bank's Board of Directors ("Board") may
assign to Employee from time to time; and

        WHEREAS, Employee desires to become employed by the Bank and to serve as
the Bank's Executive Vice President/Senior Loan Officer in accordance with the
terms and provisions of this Agreement.

        NOW, THEREFORE, in consideration of the mutual agreements contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereto represent, warrant, undertake,
covenant and agree as follows:

                                 OPERATIVE TERMS

        1. EMPLOYMENT AND TERM. The Bank shall employ Employee and Employee
shall be employed pursuant to the terms of this Agreement to perform the
services specified in Section 2 herein. The initial term of employment shall be
for a period of 12 months, commencing on November 1, 1999 (the "Effective
Date"). Upon each new day of the 12 month period of employment from the
Effective Date until the employee's 65 birthday, the term of this Agreement
shall be automatically extended for one additional day, to be added to the end
of the then-existing 12 month term. Accordingly, at all times prior to (i) the
employee's attaining age 65 and (ii) a notice of employment termination (or an
actual termination), the term of this Agreement shall be 12 full months.
However, either Party may terminate this Agreement by giving the other Party
written notice of intent not to renew.

        The Board shall, on an annual basis, review Employee's performance and
this Agreement. The automatic extensions of the term of this Agreement shall
immediately be suspended upon an employment termination by reason of death or
disability or retirement, or an employment termination made voluntarily by the
Employee (other than for Good Reason as defined in Section 9[d], or
involuntarily for Cause as defined in Section 9[b]).

        In the event the Employee gives notice of employment termination, the
Bank may elect, at its sole option, to have the term of this Agreement expire
immediately or upon the 30th day following the delivery to the Employer of such
notice of employment termination. Except as otherwise provided in the following
paragraph with respect to a voluntary termination for Good Reason, a voluntary
employment termination by the Employee shall result in the termination of the
rights and obligations of the Parties under this Agreement; provided, however,
that the terms and provisions of Section 12, 13, 14, 15, 16 and 18 shall
continue to apply.

<PAGE>   2

        In the event the Bank desires to involuntarily terminate the Employee's
employment (for purposes of this Agreement, a voluntary employment termination
by the Employee for Good Reason shall be treated as an involuntary termination
of the employee's employment without Cause), the Bank shall deliver to the
Employee a notice of employment termination, and the following provisions shall
apply:

           (a) In the event the involuntary termination is for Cause or due to
           illness or incapacity pursuant to Section 7 herein, this Agreement
           shall terminate immediately upon delivery to the Employee of such
           notice of termination. Such a termination for Cause shall result in
           the termination of all rights and obligations of the Parties under
           this Agreement, with the exception of Sections 13, 14, 15, 16 and 18.

           (b) In the event the involuntary termination is without Cause, the
           Employee shall be entitled to receive the severance benefits set
           forth in Section 9(f) herein and will remain subject to the
           provisions of Sections 13, 14, 15, 16 and 18 herein.

        2. POSITION, RESPONSIBILITIES AND DUTIES. During the term of this
Agreement, Employee shall serve in the following capacities and shall fulfill
the following responsibilities and duties:

           (a) SPECIFIC DUTIES: Employee shall serve as the Bank's Executive
           Vice President/Senior Loan Officer, through election by the Board. In
           such capacity, Employee shall have the same powers, duties and
           responsibilities of supervision and management of the Bank usually
           accorded to an Executive Vice President/Senior Loan Officer of
           similar financial institutions. In addition, Employee shall use his
           best efforts to perform the duties and responsibilities enumerated in
           this Agreement and any other duties assigned to Employee by the Board
           and to utilize and develop contacts and customers to enhance the
           business of the Bank, including but not limited to:

               (i)    managing Bank lending personnel;

               (ii)   keeping the President of the Bank and the Board informed
                      of important developments concerning the Bank's lending
                      and credit administration activities, industry
                      developments and regulatory initiatives affecting the
                      Bank;

               (iii)  maintaining adequate expense records relating to
                      Employee's activities on behalf of the Bank;

               (iv)   recommending marketing efforts to increase the lending
                      business of the Bank;

               (v)    supervising all Bank lending and credit administration
                      activities; and

               (vi)   coordinating with the Bank's President to the extent
                      necessary to further the business of the Bank, keeping in
                      compliance with government laws and regulations and
                      otherwise keeping the bank in as good a financial and
                      legal posture as possible.

                                       2
<PAGE>   3

           (b) GENERAL DUTIES: During the term of this Agreement, and except for
           illness, vacation periods and leaves of absences, Employee shall
           devote all of his working time, attention, skill and best efforts to
           accomplish and faithfully perform all of the duties assigned to
           Employee on a full-time basis. Employee shall, at all times, conduct
           himself in a manner that will reflect positively upon the Bank.
           Employee shall obtain such licenses, certificates, accreditations and
           professional memberships and designations as the Bank may reasonably
           require. Employee shall join and maintain membership in such social
           and civic organizations as Employee or the Board deems appropriate to
           foster the Bank's contacts and business network in the community.

        3. COMPENSATION. During the term of this Agreement, Employee shall be
compensated as follows:

           (a) BASE SALARY: Employee shall receive an annual salary of $100,000
           (the "Base Salary") payable in accordance with the Bank's standard
           payroll practices. Employer may adjust the Base Salary from time to
           time based upon the Board's evaluation of Employee's performance. In
           no event, however, will the Base Salary be reduced without Employee's
           written concurrence.

           (b) INCENTIVE COMPENSATION AND BONUS: Employee shall be entitled to
           participate in any incentive compensation plans adopted by the Bank.
           In addition, Employee may be paid an annual bonus of up to 12% of the
           Base Salary upon Employee achieving certain performance goals. Such
           performance goals are to be mutually agreed upon by the Bank and
           Employee by December 31, 1999.

           (c) RELOCATION EXPENSES: The Bank shall advance to Employee packing,
           moving and out-of-pocket expenses for up to $7,000 ("Moving
           Expenses"). In the event Employee leaves the employ of the Bank
           within five months of the Effective Date, Employee shall refund the
           advanced Moving Expenses to the Bank within 30 days of termination.
           For each month thereafter that Employee remains employed by the Bank,
           the amount of required repayment shall be reduced by $1,000 per
           month.

           (d) STOCK OPTIONS: Employee shall be entitled under this Agreement,
           and Employer hereby agrees to grant Employee incentive stock options
           to acquire 10,000 shares of Employer's common stock, effective as of
           the Effective Date, pursuant to the terms of the Bank's 1998 Key
           Employee Stock Compensation Program and subject to the following
           conditions:

               (i)    Options shall be vested in five equal installments of
                      2,000 shares each. The first such vesting shall occur on
                      the first anniversary of the Effective Date, and annually
                      on each anniversary of the Effective Date for four
                      additional years.

               (ii)   Each installment may be exercised in full or in part at
                      anytime following the vesting date for a period of five
                      years from such date at which time any unexercised options
                      shall expire.

               (iii)  The stock option exercise price shall be the fair market
                      value of a share of Bank stock on the date of grant to be
                      determined based upon the last recorded trade of Bank
                      stock prior to the Effective Date.

                                       3
<PAGE>   4

               (iv)   In the event of a Change-in-Control, as defined in Section
                      9(e) herein, any options not yet vested pursuant to
                      subsection (i) of this Section shall be automatically
                      vested on the day immediately preceding the effective date
                      of the Change-in-Control occurrence.

        4. PAYMENT OF BUSINESS EXPENSES. Employee is authorized to incur
reasonable expenses in performing his duties. Employer will reimburse Employee
for authorized expenses, according to the Bank's established policies, promptly
after Employee's presentation of an itemized account of such expenditures.

        5. VACATION. Employee is entitled to three weeks paid vacation time per
year on a non-cumulative basis. Employee must be employed with the Bank for six
months before being eligible to take any vacation time. All vacation time must
be scheduled with advance notice to and coordination with the President of the
Bank.

        6. FRINGE BENEFITS.

           (a) MEDICAL BENEFITS: Employee is entitled to participate in all
           medical and health care benefit plans provided by the Bank for its
           employees.

           (b) CLUB MEMBERSHIPS AND EDUCATION: Employer will reimburse Employee
           for membership dues for joining service organizations such as the
           Rotary Club or Kiwanis Club. Employer will also reimburse Employee
           for admission or attendance fees for educational meetings or seminars
           offered by such organizations as BAI or FBA.

        7. ILLNESS/INCAPACITY. Employee shall be paid his full Base Salary for
any period of his illness or incapacity: provided that such illness or
incapacity does not render Employee unable to perform his duties under this
Agreement for a period longer than three consecutive months. At the end of such
three-month period, Employer may terminate Employee's employment and this
Agreement.

        8. DEATH DURING EMPLOYMENT. In the event of Employee's death during the
term of this Agreement, Employer's obligation to Employee shall be limited to
the portion of Employee's compensation which would be payable up to the first
working day of the first month after Employee's death, except that any
compensation payable to Employee under any benefit plan maintained by Employer
will be paid pursuant to its terms.

        9. TERMINATION.

           (a) ILLNESS, INCAPACITY OR DEATH: This Agreement shall terminate upon
           Employee's illness, incapacity or death in accordance with the
           provisions of Sections 7 and 8 herein.

           (b) TERMINATION FOR CAUSE: The Employer shall have the right, at any
           time, upon prior written notice of termination satisfying the
           requirements of Section 11 herein, to terminate the Employee's
           employment hereunder, including termination for Cause. For the
           purpose of this Agreement, termination for "Cause" shall mean
           termination for personal dishonesty, incompetence, misconduct or
           conduct which negatively reflects upon the Bank, breach of fiduciary
           duty, failure to perform the duties stated in this Agreement,
           violation of any law, rule or regulation (other than minor traffic
           violations or similar offenses), violation of a final
           cease-and-desist order, personal default on indebtedness which is not
           corrected within 30 days from the date of default. In the event

                                       4
<PAGE>   5

           Employee is terminated for Cause, Employee shall have no right to
           compensation or other benefits for any period after such date of
           termination.

           (c) INVOLUNTARY TERMINATION: If the Employee is terminated by
           Employer other than for Cause or in connection with a
           Change-in-Control of the Bank (as defined in Section 9[e] herein),
           Employee's right to compensation and other benefits under this
           Agreement shall be as set forth in Section 9(f)(i) herein. In the
           event the Employee is terminated by Employer in connection with a
           Change-in-Control of the Bank, Employee's right to compensation and
           other benefits under this Agreement shall be as set forth in Section
           9(f)(ii) herein.

           (d) TERMINATION FOR GOOD REASON: Employee may terminate his
           employment hereunder for Good Reason. For purposes of this Agreement,
           "Good Reason" shall mean (i) a failure by the Bank to comply with any
           material provision of this Agreement, which failure has not been
           cured within 20 days after a notice of such noncompliance has been
           given by the Employee to the Bank; or (ii) subsequent to a
           Change-in-Control as defined in Section 9(e) herein and without the
           Employee's express written consent, any of the following shall occur:
           the assignment to the Employee of any duties inconsistent with the
           Employee's position, duties, responsibilities and status with the
           Bank immediately prior to a Change-in-Control of the Bank; or the
           transfer of the Employee to any location outside of the county in
           which Employee was working immediately prior to the
           Change-in-Control.

           (e) CHANGE-IN-CONTROL: "Change-in-Control" is defined herein to mean
           an event where a person: (i) directly or indirectly, or acting
           through one or more other persons, owns, controls or has power to
           vote more than 50% of any class of the then outstanding voting
           securities of the Bank; or (ii) controls in any manner the election
           of the directors of the Bank. For purposes of this Agreement, a
           Change-in-Control" shall be deemed not to have occurred in connection
           with a reorganization, consolidation, or merger of the Bank where the
           stockholders of the Bank, immediately before the consummation of the
           transaction, will own over 50% of the total combined voting power of
           all classes of stock entitled to vote of the surviving entity
           immediately after the transaction.

           (f) SEVERANCE PAYMENT:

               (i)    If the Employee shall terminate his employment for Good
                      Reason as defined in of Section 9(d) herein, or if the
                      Employee is terminated by the Bank for other than Cause
                      pursuant to Section 9(c) herein, then in lieu of any
                      further salary payments to the Employee for periods
                      subsequent to the date of termination, the Employee shall
                      be paid, as severance, six months Base Salary plus any
                      bonus which the Employee would have been entitled to
                      hereunder;

               (ii)   In the event Employee's employment is terminated as a
                      result of a Change-in-Control or a Change-in-Control of
                      the Bank occurs within 12 months of the Employees'
                      involuntary termination or termination for Good Reason,
                      Employee shall be entitled to a severance payment equal to
                      his current Base Salary plus any incentive compensation or
                      bonus which the Employee would have been entitled to
                      hereunder.

                                       5
<PAGE>   6

            Any payment under Section 9(f)(i) and 9(f)(ii) shall be made in
            substantially equal semi-monthly installments on the 15th and last
            days of each month until paid in full.

        10. REQUIRED PROVISIONS BY REGULATION. Employer and Employee acknowledge
that the laws and regulations governing the Parties require that certain
provisions be provided in each employment agreement with officers and employees
of the Bank. The Parties agree to be bound by the following provisions:

           (a) SUSPENSION/TEMPORARY PROHIBITION: If the Employee is suspended
           and/or temporarily prohibited from participating in the conduct of
           the Bank's affairs by a notice served under Section 655.037 Florida
           Statutes or under Section 8(e) or (g)(1) of the Federal Deposit
           Insurance Act [12 U.S.C. ss.1818(e)(3) and (g)(1)] the Bank's
           obligations under this Agreement shall be suspended as of the date of
           such service unless stayed by appropriate proceedings. If the charges
           and the notice are dismissed, the Bank may in its discretion:

               (i)    pay the Employee all or part of his compensation withheld
                      while the obligations under this Agreement are suspended;
                      and

               (ii)   reinstate (in whole or part) any of the Bank's obligations
                      which were suspended.

           (b) PERMANENT PROHIBITION: If the Employee is removed and/or
           permanently prohibited from participating in the conduct of the
           Bank's affairs by an order issued under Section 655.037 Florida
           Statutes or Section 8(e)(4) or (g)(1) of the Federal Deposit
           Insurance Act [12 U.S.C. ss.1818(e)(4) or (g)(1)], all of the Bank's
           obligations under this Agreement shall terminate as of the effective
           date of the order, but the Employee's vested rights, if any shall not
           be affected.

           (c) DEFAULT UNDER FDIA: If the Bank is in default [as defined in
           Section 3(x)(1) of the Federal Deposit Insurance Act], all
           obligations under this Agreement shall terminate as of the date of
           default, but this subsection of this Agreement shall not affect the
           Employee's vested rights if any.

           (d) REGULATORY TERMINATION: All obligations under this Agreement
           shall be terminated, except to the extent that a determination has
           been made that continuation of this Agreement is necessary for
           continued operation of the Bank:

               (i)    by the Director or his or her designee, at the time the
                      Federal Deposit Insurance Corporation ("FDIC") enters into
                      an agreement to provide assistance to or on behalf of the
                      Bank under the authority contained in Section 13(c) of the
                      Federal Deposit Insurance Act; or

               (ii)   by the Department or the Director or his or her designee,
                      at the time the Department or the Director or his or her
                      designee approves a supervisory merger to resolve problems
                      related to operation of the Bank or when the Bank's
                      determined by the Director to be in unsafe or unsound
                      condition.

                                       6
<PAGE>   7

                      Any of the Employee's rights that have already vested,
                      however, shall not be affected by such action. For
                      purposes of this subsection of this Agreement, the term
                      "Director" shall mean the Director of the FDIC.

        11. NOTICE OF TERMINATION.

            (a) EMPLOYEE'S NOTICE: Employee shall have the right, upon prior
            written notice of termination of not less than 30 days, to terminate
            his employment hereunder. In such event, Employee shall have no
            right after the date of termination to compensation or other
            benefits as provided in this Agreement, unless such termination is
            for "Good Reason", as defined in Section 9(d) herein. If the
            Employee provides a notice of termination for Good Reason, the date
            of termination shall be the date on which the notice of termination
            is given.

            (b) SPECIFICITY: Any termination of the Employee's employment by the
            Bank or by Employee shall be communicated by written notice of
            termination to the other Party hereto. For purposes of this
            Agreement, a "notice of termination" shall mean a dated notice which
            shall: (i) indicate the specific termination provision in the
            Agreement relied upon; (ii) set forth in reasonable detail the facts
            and circumstances claimed to provide a basis for termination of the
            Employee's employment under the provision so indicated; and (iii)
            set forth the date of termination, which shall be not less than 30
            days nor more than 45 days after such notice of termination is
            given, except in the case of the Bank's termination of the
            Employee's employment for Cause, in which case date of termination
            shall be the date such notice of termination is given.

           (c) DELIVERY OF NOTICES: All notices given or required to be given
           herein shall be in writing, sent by United States first-class
           certified or registered mail, postage prepaid, by way of overnight
           carrier or by hand delivery. If to the Employee (or to the Employee's
           spouse or estate upon the Employee's death) notice shall be sent to
           Employee's last-known address, and if to Employer, notice shall be
           sent to the corporate headquarters. All such notices shall be
           effective five days after having been deposited in the mail if sent
           via first-class certified or registered mail, or upon delivery if by
           hand delivery or sent via overnight carrier. Either Party, by notice
           in writing, may change or designate the place for receipt of all such
           notices.

        12. POST-TERMINATION OBLIGATIONS. Employer shall pay to Employee such
compensation as is required pursuant to this Agreement; provided, however, any
such payment shall be subject to Employee's post-termination cooperation. Such
cooperation shall include the following:

               (i)    Employee shall furnish such information and assistance as
                      may be reasonably required by Employer in connection with
                      any litigation or settlement of any dispute between
                      Employer, a customer and/or any other third parties
                      (including without limitation serving as a witness in
                      court or other proceedings);

               (ii)   Employee shall provide such information or assistance to
                      Employer in connection with any regulatory examination by
                      any state or federal regulatory agency;

                                       7
<PAGE>   8

               (iii)  Employee shall keep the Bank's trade secrets and other
                      proprietary or confidential information secret to the
                      fullest extent practicable, subject to compliance with all
                      applicable laws.

        Upon submission of proper receipts, Employer shall promptly reimburse
Employee for any reasonable expenses in current by Employee in complying with
the provisions of this Section.

        13. INDEBTEDNESS. If during the term of this Agreement, Employee becomes
indebted to the Bank for any reason, the Bank may, at its election, set off and
collect any sums due Employee out of any amounts which the Bank may owe Employee
from his Base Salary or other compensation. Furthermore, upon the termination of
this Agreement, all sums owed by Employee shall become immediately due and
payable. Employee shall pay all expenses and attorney's fees actually or
necessarily incurred by the Bank in connection with any collection proceeding
for Employee's indebtedness to us. Notwithstanding any of the foregoing, any
indebtedness to us secured by a mortgage on Employee's residence shall not be
subject to the foregoing provisions, and shall be governed by the loan documents
evidencing such indebtedness.

        14. MAINTENANCE OF TRADE SECRETS AND CONFIDENTIAL INFORMATION. Employee
shall use his best efforts and utmost diligence to guard and protect all of the
Bank's trade secrets and confidential information. Employee shall not, either
during the term or after termination of this Agreement, for whatever reason,
use, in any capacity, or divulge or disclose in any manner, to any Person, the
identity of the Bank's customers, or its customer lists, methods of operation,
marketing and promotional methods, processes, techniques, systems, formulas,
programs or other trade secrets or confidential information relating to the
Bank's business. Upon termination of this Agreement or Employee's employment,
for any reason, Employee shall immediately return and deliver to the Bank all
records and papers and all matters of whatever nature which bear trade secrets
or confidential information relating to the Bank.

        15. COMPETITIVE ACTIVITIES.

            (a) LIMITATION ON OUTSIDE ACTIVITIES: Employee agrees that during
            the term of this Agreement, except with the express consent of the
            Board, Employee will not, directly or indirectly, engage or
            participate in, become a director of, or render advisory or other
            services for, or in connection with, or become interested in, or
            make any financial investment in any firm, corporation, business
            entity or business enterprise competitive with or to any business of
            the Bank; provided, however, that Employee shall not be precluded or
            prohibited from owning passive investments, including investments in
            the securities of other financial institutions, so long as such
            ownership does not require Employee to devote substantial time to
            management or control of the business or activities in which
            Employee has invested.

            (b) AGREEMENT NOT TO COMPETE: Employee acknowledges that by virtue
            of his employment with the Bank, Employee will acquire an intimate
            knowledge of the activities and affairs of the Bank, including trade
            secrets and other confidential matters. Employee, therefore, agrees
            that during the term of this Agreement, and for a period of six
            months (in the event Employee does not receive severance
            compensation) or 12 months (in the event Employee does receive
            severance compensation) following the termination of Employee's
            employment hereunder, Employee shall

                                       8
<PAGE>   9
            not become employed, directly or indirectly, whether as an Employee,
            independent contractor, consultant, or otherwise, with a
            federally-insured financial institution located in, or with any
            business enterprise, business entity or Person whose intent is to
            organize another financial institution in Pinellas County, Florida.

            Employee further agrees that for a period of 12 months following the
            termination of Employee's employment hereunder for any reason,
            Employee shall not directly or indirectly solicit the business of
            any then current customer of the Bank, regardless of whether or not
            Employee was responsible for generating such customer's business for
            the Bank. This restriction shall apply to both loan customers and
            depositors of the Bank.

            Employee hereby agrees that the duration of the anticompetitive
            covenant set forth herein is reasonable, and its geographic scope is
            not unduly restrictive.

        16. REMEDIES FOR BREACH.

            (a) ARBITRATION: The Parties agree that, except for the specific
            remedies for Injunctive Relief as contained in Section 16(b) and
            other equitable relief, any controversy or claim arising out of or
            relating to this Agreement, or any breach thereof, including,
            without limitation, any claim that this Agreement or any portion
            thereof is invalid, illegal or otherwise voidable, shall be
            submitted to binding arbitration before and in accordance with the
            Rules of the American Arbitration Association and judgment upon the
            determination and/or award of such arbitrator may be entered in any
            court having jurisdiction thereof; provided, however, that this
            clause shall not be construed to permit the award of punitive
            damages to either Party. The prevailing Party to said arbitration
            shall be entitled to an award of reasonable attorneys' fees. The
            venue for arbitration shall be in Pinellas County, Florida.

            (b) INJUNCTIVE RELIEF: The Parties acknowledge and agree that the
            services to be performed by Employee are special and unique and that
            money damages cannot fully compensate Employer in the event of
            Employee's violation of the provisions of Section 15 of this
            Agreement. Thus, in the event of a breach of any of the provisions
            of such Section, Employee agrees that Employer, upon application to
            a court of competent jurisdiction, shall be entitled to an
            injunction restraining Employee from any further breach of the terms
            and provision of such Section. Should Employer prevail in an action
            seeking an injunction restraining Employee, Employee shall pay all
            costs and reasonable attorneys fees incurred by Employer in and
            relating to obtaining such injunction. Such injunctive relief may be
            obtained without bond and Employee's sole remedy, in the event of
            the entry of such injunction, shall be the dissolution of such
            injunction. Employee hereby waives any and all claims for damages by
            reason of the wrongful issuance of any such injunction.

            (c) CUMULATIVE REMEDIES: Notwithstanding any other provision of this
            Agreement, the injunctive relief described in Section 16(b) herein
            and all other remedies provided for in this Agreement which are
            available to Employer as a result of Employee's breach of this
            Agreement,

                                       9
<PAGE>   10

            are in addition to and shall not limit any and all remedies existing
            at or in equity which may also be available to Employer.

        17. ASSIGNMENT. This Agreement shall inure to the benefit of and be
binding upon the Employee, and to the extent applicable, his heirs, assigns,
executors, and personal representatives, and to the Bank, and to the extent
applicable, its successors, and assigns, including, without limitation, any
person, partnership, or corporation which may acquire all or substantially all
of the Bank's assets and business, or with or into which the Bank may be
consolidated or merged, and this provision shall apply in the event of any
subsequent merger, consolidation, or transfer, unless such merger or
consolidation or subsequent merger or consolidation is a transaction of the type
which would result in termination under Sections 10(c) and 10(d) herein.

        18. MISCELLANEOUS.

            (a) AMENDMENT OF AGREEMENT: Unless as otherwise provided herein,
            this Agreement may not be modified or amended except in writing
            signed by the Parties.

            (b) CERTAIN DEFINITIONS: For purposes of this Agreement, the
            following terms whenever capitalized herein shall have the following
            meanings:

               (i)    "Person" shall mean any natural person, corporation,
                      partnership (general or limited), trust, association or
                      any other business entity.

               (ii)   "Attorneys' Fees" shall include the legal fees and
                      disbursements charged by attorneys and their related
                      travel and lodging expenses, court costs, paralegal fees,
                      etc. incurred in settlement, trial, appeal or in
                      bankruptcy proceedings.

            (c) HEADINGS FOR REFERENCE ONLY: The headings of the Sections and
            the Subsections herein are included solely for convenient reference
            and shall not control the meaning of the interpretation of any of
            the provisions of this Agreement.

            (d) GOVERNING LAW/JURISDICTION: This Agreement shall be construed in
            accordance with and governed by the laws of the State of Florida.
            Any litigation involving the Parties and their rights and
            obligations hereunder shall be brought in the appropriate court in
            Pinellas County, Florida.

            (e) SEVERABILITY: If any of the provisions of this Agreement shall
            be held invalid for any reason, the remainder of this Agreement
            shall not be affected thereby and shall remain in full force and
            effect in accordance with the remainder of its terms.

            (f) ENTIRE AGREEMENT: This Agreement and all other documents
            incorporated or referred to herein, contain the entire agreement of
            the Parties and there are no representations, inducements or other
            provisions other than those expressed in writing herein. This
            Agreement amends, supplants and supersedes any and all prior
            agreements between the Parties. No modification, waiver or discharge
            of any provision or any breach of this Agreement shall be effective
            unless it is

                                       10
<PAGE>   11

            in writing signed by both Parties. A Party's waiver of the other
            Party's breach of any provision of this Agreement, shall not
            operate, or be construed, as a waiver of any subsequent breach of
            that provision or of any other provision of this Agreement.

            (g) WAIVER: No course of conduct by Employer or Employee and no
            delay or omission of Employer or Employee to exercise any right or
            power given under this Agreement shall: (i) impair the subsequent
            exercise of any right or power, or (ii) be construed to be a waiver
            of any default or any acquiescence in or consent to the curing of
            any default while any other default shall continue to exist, or be
            construed to be a waiver of such continuing default or of any other
            right or power that shall theretofore have arisen. Any power and/or
            remedy granted by law and by this Agreement to any Party hereto may
            be exercised from time to time, and as often as may be deemed
            expedient. All such rights and powers shall be cumulative to the
            fullest extent permitted by law.

            (h) PRONOUNS: As used herein, words in the singular include the
            plural, and the masculine include the feminine and neuter gender, as
            appropriate.

            (i) RECITALS: The Recitals set forth at the beginning of this
            Agreement shall be deemed to be incorporated into this Agreement by
            this reference as if fully set forth herein, and this Agreement
            shall be interpreted with reference to and in light of such
            Recitals.

        IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the day and year first written above.

EMPLOYEE                            MADISON BANK

/s/ DAVID PAETZOLD                  BY: /s/ ROBERT B. McGIVNEY
------------------------------          ----------------------------------------
David Paetzold                             Robert B. McGivney
                                           President and Chief Executive Officer

/s/ ARLENE V. PHILLIPS                  /s/ ARLENE V. PHILLIPS
------------------------------          ----------------------------------------
Witness                                    Witness

                                       11

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