Document:

<PAGE>   1

                                   EXHIBIT 4.1

         Stock Purchase Warrant issued to FINOVA Mezzanine Capital Inc.
                            dated September 30, 1999

<PAGE>   2

STOCK PURCHASE WARRANT

         This STOCK PURCHASE WARRANT ("Warrant") is issued this 30th day of
September, 1999, by GALAXY FOODS COMPANY, a Delaware corporation (the
"Company"), to FINOVA MEZZANINE CAPITAL INC., a Tennessee corporation (FINOVA
MEZZANINE CAPITAL INC. and any subsequent assignee or transferee hereof are
hereinafter referred to collectively as "Holder" or "Holders").

                                   AGREEMENT:

         1. ISSUANCE OF WARRANT; TERM. For and in consideration of FINOVA
MEZZANINE CAPITAL INC. making a loan to the Company in an amount of Four Million
and no/100ths Dollars ($4,000,000) pursuant to the terms of a secured promissory
note of even date herewith (the "Note") and related loan agreement of even date
herewith (the "Loan Agreement"), and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company hereby
grants to Holder the right to purchase 915,000 shares (the "Base Amount") of the
Company's common stock (the "Common Stock"), which the Company represents to
equal 7.41% of the shares of capital stock outstanding on the date hereof,
calculated on a fully diluted basis and assuming exercise of this Warrant,
provided that in the event that any portion of the indebtedness evidenced by the
Note is outstanding on the following dates, the Base Amount shall be increased
to the corresponding number set forth below:

       DATE                                          BASE AMOUNT
------------------                   ------------------------------------------

September 30, 2002                       1,015,000 shares, which the Company
                                     represents to equal 8.16% of the shares of
                                     the Company's capital stock outstanding on
                                     the date hereof calculated on a fully
                                     diluted basis after exercise of this
                                     Warrant

September 30, 2003                       1,115,000 shares, which the Company
                                     represents to equal 8.89% of the shares of
                                     the Company's capital stock outstanding on
                                     the date hereof calculated on a fully
                                     diluted basis after exercise of this
                                     Warrant

September 30, 2004                       1,215,000 shares, which the Company
                                     represents to equal 9.61% of the shares of
                                     the Company's capital stock outstanding on
                                     the date hereof calculated on a fully
                                     diluted basis after exercise of this
                                     Warrant

The shares of Common Stock issuable upon exercise of this Warrant are
hereinafter referred to as the "Shares." This Warrant shall be exercisable at
any time and from time to time from the date hereof until October 31, 2004 (the
"Expiration Date").

                                       2
<PAGE>   3

         2. EXERCISE PRICE. The exercise price (the "Exercise Price") per share
for which all or any of the Shares may be purchased pursuant to the terms of
this Warrant shall be equal to 80% average closing bid price of the Company's
Common Stock for the 20 consecutive trading days immediately preceding the
Closing Date, and shall be further adjusted as provided herein. If on September
30, 2000, the average closing bid price of the Common Stock for the 20
consecutive trading days immediately prior to September 30, 2000, is less than
the Exercise Price, then the Exercise Price shall automatically be reset on
September 30, 2000, at the average closing bid price of the Company's Common
Stock for the 20 consecutive trading days immediately preceding September 30,
2000, provided that no adjustment shall be made which increases the then
effective Exercise Price.

         3. EXERCISE. This Warrant may be exercised by the Holder hereof (but
only on the conditions hereinafter set forth) in whole or in part, upon delivery
of written notice of intent to exercise to the Company in the manner at the
address of the Company set forth in Section 14 hereof, together with this
Warrant and payment to the Company of the aggregate Exercise Price of the Shares
so purchased. The Exercise Price shall be payable, at the option of the Holder,
(a) by certified or bank check, (b) by the surrender of the Note or portion
thereof having an outstanding principal balance equal to the aggregate Exercise
Price or (c) by the surrender of a portion of this Warrant where the Shares
subject to the portion of this Warrant that is surrendered have a fair market
value equal to the aggregate Exercise Price. In the absence of an established
public market for the Common Stock, fair market value shall be established by
the Company's board of directors in a commercially reasonable manner. Upon
exercise of this Warrant as aforesaid, the Company shall as promptly as
practicable, and in any event within fifteen (15) days thereafter, execute and
deliver to the Holder of this Warrant a certificate or certificates for the
total number of whole Shares for which this Warrant is being exercised in such
names and denominations as are requested by such Holder. If this Warrant shall
be exercised with respect to less than all of the Shares, the Holder shall be
entitled to receive a new Warrant covering the number of Shares in respect of
which this Warrant shall not have been exercised, which new Warrant shall in all
other respects be identical to this Warrant. The Company covenants and agrees
that it will pay when due any and all state and federal issue taxes which may be
payable in respect of the issuance of this Warrant or the issuance of any Shares
upon exercise of this Warrant.

         4. COVENANTS AND CONDITIONS. The above provisions are subject to the
following:

                  (a) Neither this Warrant nor the Shares have been registered
         under the Securities Act of 1933, as amended (the "Securities Act"), or
         any state securities laws ("Blue Sky Laws"). This Warrant has been
         acquired for investment purposes and not with a view to distribution or
         resale and may not be sold or otherwise transferred without (i) an
         effective registration statement for such Warrant under the Securities
         Act and such applicable Blue Sky Laws, or (ii) an opinion of counsel,
         which opinion and counsel shall be reasonably satisfactory to the
         Company and its counsel, that registration is not required under the
         Securities Act or under any applicable Blue Sky Laws (the Company
         hereby acknowledges that Harwell, Howard, Hyne, Gabbert & Manner is
         acceptable counsel). Transfer of the Shares shall be restricted in the
         same manner and to the same extent as the Warrant and the certificates
         representing such Shares shall bear substantially the following legend:

                  THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE
                  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED (THE "ACT"), OR

                                       3
<PAGE>   4

                  ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED
                  UNTIL (I) A REGISTRATION STATEMENT UNDER THE ACT AND SUCH
                  APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE
                  WITH REGARD THERETO, OR (II) IN THE OPINION OF COUNSEL
                  ACCEPTABLE TO THE COMPANY, REGISTRATION UNDER SUCH SECURITIES
                  ACTS AND SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED
                  IN CONNECTION WITH SUCH PROPOSED TRANSFER.

         The Holder hereof and the Company agree to execute such other documents
         and instruments as counsel for the Company reasonably deems necessary
         to effect the compliance of the issuance of this Warrant and any shares
         of Common Stock issued upon exercise hereof with applicable federal and
         state securities laws.

                  (b) The Company covenants and agrees that all Shares which may
         be issued upon exercise of this Warrant will, upon issuance and payment
         therefor, be legally and validly issued and outstanding, fully paid and
         nonassessable, free from all taxes, liens, charges and preemptive
         rights, if any, with respect thereto or to the issuance thereof. The
         Company shall at all times reserve and keep available for issuance upon
         the exercise of this Warrant such number of authorized but unissued
         shares of Common Stock as will be sufficient to permit the exercise in
         full of this Warrant.

         5. TRANSFER OF WARRANT. Subject to the provisions of Section 4 hereof,
this Warrant may be transferred, in whole or in part, to any person or business
entity, by presentation of the Warrant to the Company with written instructions
for such transfer. Upon such presentation for transfer, the Company shall
promptly execute and deliver a new Warrant or Warrants in the form hereof in the
name of the assignee or assignees and in the denominations specified in such
instructions. The Company shall pay all expenses incurred by it in connection
with the preparation, issuance and delivery of Warrants under this Section.

         6. WARRANT HOLDER NOT SHAREHOLDER; RIGHTS OFFERING; PREEMPTIVE RIGHTS.
Except as otherwise provided herein, this Warrant does not confer upon the
Holder, as such, any right whatsoever as a shareholder of the Company.
Notwithstanding the foregoing, if the Company should offer to all of the
Company's shareholders the right to purchase any securities of the Company, then
all shares of Common Stock that are subject to this Warrant shall be deemed to
be outstanding and owned by the Holder and the Holder shall be entitled to
participate in such rights offering. The Company shall not grant any preemptive
rights with respect to any of its capital stock without the prior written
consent of the Holder.

         7. OBSERVATION RIGHTS. The Holder of this Warrant shall receive notice
of and be entitled to attend or may send a representative to attend all meetings
of the Company's Board of Directors in a non-voting observation capacity and
shall receive a copy of all correspondence and information delivered to the
Company's Board of Directors, from the date hereof until such time as the
indebtedness evidenced by the Note has been paid in full.

                                       4

<PAGE>   5

         8. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES ISSUABLE. The
Exercise Price and the number of shares purchasable hereunder are subject to
adjustment from time to time as follows:

                  (a) Stock Splits, Recapitalization, Etc. If all or any portion
of this Warrant shall be exercised subsequent to any stock split, stock
dividend, recapitalization, combination of shares of the Company, or other
similar event occurring after the date hereof, then the Holder exercising this
Warrant shall receive, for the aggregate price paid upon such exercise, the
aggregate number and class of shares which such Holder would have received if
this Warrant had been exercised immediately prior to the record date for such
stock split, stock dividend, recapitalization, combination of shares, or other
similar event.

                  (b) Merger, Etc. If the Company at any time merges or
consolidates with or into any other corporation or enters into a similar
transaction (other than a merger in which the Company is the surviving
corporation and in connection with which there is no reclassification or other
change in the Common Stock or other securities of the Company or any issuance of
stock, securities or property to the holders of its outstanding shares of Common
Stock), then the Company shall notify the Holder of any such event and,
effective upon the record or other date of determination of persons affected by
such merger, consolidation or similar transaction, the securities which the
Holder would be entitled to receive on the exercise hereof shall include the
kind and amount of securities, cash and property that would have been held by
the Holder if on such determination date the Holder had been the holder of
record of the securities, cash and properties issuable upon exercise of the
Warrant on such determination date (or the right thereto prior to the effective
date thereof). In the event of any merger, consolidation or similar transaction
referred to above in this Section 8(b), the Company shall, and shall cause any
successor corporation as a condition precedent to such transaction to, execute
and deliver to each Holder a new Warrant (i) providing that the owner of such
Warrant, upon exercise thereof, shall have the right to purchase the securities
as adjusted as described above, and (ii) containing provisions for subsequent
adjustments in a manner and on terms as nearly equivalent as may be practicable
to the adjustments provided for in this Section 8(b).

                  (c) Adjustment on Certain Dilutive Issues.

                           (i)      Definitions. For purposes of this Section
8(c), the following definitions apply:

                                    (1)       "Options" shall mean rights,
                           options, or warrants to subscribe for, purchase or
                           otherwise acquire either Common Stock or Convertible
                           Securities (as defined below), except for (A)
                           currently exercisable options to purchase an
                           aggregate of 1,629,000 shares of Common Stock
                           outstanding on the Original Warrant Issue Date (the
                           "Outstanding Options"); and (B) rights or options to
                           acquire up to an aggregate of 260,000 shares of
                           Common Stock which may be granted to employees,
                           directors or consultants to the Company pursuant to
                           the Company's Stock Option Plan, provided that the
                           exercise price for all options granted after the
                           Warrant Issue Date shall be no less than the Fair
                           Market Value (as defined in Section 8(e) below) on
                           the date of grant (the "Plan Options").

                                       5
<PAGE>   6

                                    (2)       "Convertible Securities" shall
                           mean any evidences of indebtedness, shares of stock
                           (other than Common Stock or other securities
                           convertible into or exchangeable for Common Stock.

                                    (3)       "Additional Shares of Common
                           Stock" shall mean all shares of Common Stock issued
                           (or deemed to be issued pursuant to Section
                           8(c)(iii)) by the Corporation after Warrant Issue
                           Date, other than shares of Common Stock issued or
                           issuable upon (i) the exercise of the Outstanding
                           Options; or (ii) the exercise of any Plan Options.

                           (ii)     Adjustment of Exercise Price. In the event
that the consideration per share (determined pursuant to Section 8(c)(v) hereof)
for an Additional Share of Common Stock issued or deemed to be issued by the
Company is less than the Fair Market Value (as defined in Section 8(e) hereof)
on the date of the issue of such Additional Share of Common Stock, then the
Exercise Price and the number of shares shall be adjusted as provided herein.

                           (iii)    Issue of Options and Convertible Securities.
In the event the Company at any time or from time to time after the Warrant
Issue Date shall issue any Options or Convertible Securities or shall fix a
record date for the determination of holders of any class of securities then
entitled to receive any such Options or Convertible Securities, then the maximum
number of shares (as set forth in the instrument relating thereto without regard
to any provisions contained therein for a subsequent adjustment of such number)
of Common Stock issuable upon the exercise of such Options or, in the case of
Convertible Securities and Options therefor, the conversion or exchange of such
Convertible Securities, shall be deemed to be Additional Shares of Common Stock
issued as of the time of such issue or, in case such a record date shall have
been fixed, as of the close of business on such record date, provided that
Additional Shares of Common Stock shall not be deemed to have been issued unless
the consideration per share (determined pursuant to Section 8(c)(v) hereof) of
such Additional Shares of Common Stock would be less than the Fair Market Value
(as defined in Section 8(e) hereof) on the date of such issue, or such record
date, as the case may be, and provided that in any such case in which Additional
Shares of Common Stock are deemed to be issued:

                                    (1)       no further adjustments in the
                           Exercise Price shall be made upon the subsequent
                           issue of Convertible Securities or shares of Common
                           Stock upon the exercise of such Options or conversion
                           or exchange of such Convertible Securities;

                                    (2)       if such Options or Convertible
                           Securities by their terms provide, with the passage
                           of time or otherwise, for any increase or decrease in
                           the consideration payable to the Company, or decrease
                           or increase in the number of shares of Common Stock
                           issuable upon the exercise, conversion or exchange
                           thereof, the Exercise Price computed upon the
                           original issue thereof (or upon the occurrence of a
                           record date with respect thereto), and any subsequent
                           adjustments based thereon, shall, upon any such
                           increase or decrease becoming effective, be
                           recomputed to reflect such increase or decrease
                           insofar as it affects such Options or the rights of
                           conversion or exchange under such Convertible
                           Securities, provided, however, that no such
                           adjustment of the Exercise Price shall affect Common
                           Stock previously issued upon exercise or conversion
                           of this Warrant;

                                       6
<PAGE>   7

                                    (3)       upon the expiration of any such
                           Options or any rights of conversion or exchange under
                           such Convertible Securities that shall not have been
                           exercised, the Exercise Price computed upon the
                           original issue thereof (or upon the occurrence of a
                           record date with respect thereto), and any subsequent
                           adjustments based thereon, shall, upon such
                           expiration, be recomputed as if:

                                              (a)         in the case of
                                    Convertible Securities or Options for Common
                                    Stock, the only Additional Shares of Common
                                    Stock issued were the shares of Common
                                    Stock, if any, actually issued upon the
                                    exercise of such Options or the conversion
                                    or exchange of such Convertible Securities
                                    and the consideration received therefor was
                                    the consideration actually received by the
                                    Company for the issue of all such Options,
                                    whether or not exercised, plus the
                                    consideration actually received by the
                                    Company upon such exercise, or for the issue
                                    of all such Convertible Securities that were
                                    actually converted or exchanged, plus the
                                    additional consideration, if any, actually
                                    received by the Company upon such conversion
                                    or exchange, and

                                              (b)         in the case of Options
                                    for Convertible Securities, only the
                                    Convertible Securities, if any, actually
                                    issued upon the exercise thereof were issued
                                    at the time of issue of such Options, and
                                    the consideration received by the Company
                                    for the Additional Shares of Common Stock
                                    deemed to have been then issued was the
                                    consideration actually received by the
                                    Company for the issue of all such Options,
                                    whether or not exercised, plus the
                                    consideration deemed to have been received
                                    by the Company (determined pursuant to
                                    Section 8(c)(v)) upon the issue of the
                                    Convertible Securities with respect to which
                                    such Options were actually exercised;

                                    (4)       no readjustment pursuant to
                           Section 8(c)(iii)(2) or (3) above shall have the
                           effect of increasing the Exercise Price to an amount
                           which exceeds the lower of (a) the Exercise Price
                           prior to the initial adjustment to which the
                           readjustment applies, or (b) the Exercise Price that
                           would have resulted from any issuance of Additional
                           Shares of Common Stock between the date of the
                           initial adjustment date and such readjustment date;
                           and

                                    (5)       in the event of any change in the
                           number of shares of Common Stock issuable upon the
                           exercise, conversion or exchange of any Option or
                           Convertible Security, including, but not limited to,
                           a change resulting from the antidilution provisions
                           thereof, the Exercise Price then in effect shall
                           forthwith be readjusted to such Exercise Price as
                           would have been obtained had the adjustment which was
                           initially made upon the issuance of such unexercised
                           Option or unconverted Convertible Security, been made
                           upon the basis of such subsequent change, but no
                           further adjustment shall be made for the actual
                           issuance of Common Stock upon the exercise or
                           conversion of any such Option or Convertible
                           Security.

                           (iv)     Adjustment of Exercise Price Upon Issuance
of Additional Shares of Common Stock. In the event the Company at any time after
the Warrant Issue Date shall issue Additional Shares of Common Stock (including
Additional Shares of Common Stock deemed to be issued pursuant to Section
8(c)(iii)), without consideration or for a consideration per share less than the
Fair Market Value

                                       7
<PAGE>   8

(as defined in Section 8(e) below) on the date of such issue, then and in such
event, the Exercise Price shall be reduced to a price (calculated to the nearest
cent) equal to either (A) the per share consideration for such Additional Shares
of Common Stock (or deemed Additional Shares of Common Stock) pursuant to
Section 5(e)(iii), or (B) in the case of Additional Shares of Common Stock
issued (or deemed to have been issued) without consideration, the par value of
the Common Stock.

         The provisions of this Section 8(c)(iv) do not apply if the provisions
of any of Section 8(a) or (b) apply.

                          (v)       Determination of Consideration. The
         consideration received by the Company for the issue of any Additional
         Shares of Common Stock shall be computed as follows:

                                    (1)       Cash, Property, and Other
                           Consideration. Such consideration shall:

                                              (a)         insofar as it consists
                                    of cash, be computed as the aggregate amount
                                    of cash received by the Company excluding
                                    amounts paid or payable for accrued interest
                                    or accrued dividends;

                                              (b)         insofar as it consists
                                    of property, services, or other
                                    consideration other than cash, be computed
                                    at the fair value thereof at the time of
                                    such issue, as determined in good faith by
                                    the Board of Directors; and

                                              (c)         in the event
                                    Additional Shares of Common Stock are issued
                                    together with other shares or securities or
                                    other assets of the Company for
                                    consideration which covers both, be the
                                    proportion of the consideration so received,
                                    computed as provided in clauses (a) and (b)
                                    above, as is determined in good faith by the
                                    Board of Directors.

                                    (2)       Options and Convertible
                           Securities. The consideration per share received by
                           the Company for Additional Shares of Common Stock
                           deemed to have been issued pursuant to Options and
                           Convertible Securities, shall be deemed to be the sum
                           of the consideration paid for such Option or
                           Convertible Security, if any, plus the lowest
                           consideration per share then payable upon the
                           exercise of Options, as set forth in the instruments
                           relating to such Options or Convertible Securities,
                           without regard to any provision contained therein
                           designed to protect against dilution. If Options or
                           Convertible Securities are issued together with other
                           securities or instruments of the Company, the Board
                           of Directors shall determine in good faith the amount
                           of consideration paid for such Option or Convertible
                           Securities.

                  (d)      Certificate as to Adjustments. In each case of any
adjustment or readjustment pursuant to Section 8(a)-(c) of the Exercise Price or
the number of shares issuable pursuant to this Warrant, the Company shall
forthwith notify the Holder or Holders of this Warrant of each such adjustment,
setting forth in reasonable detail the event requiring the adjustment and the
method by which such adjustment was calculated.

                                       8
<PAGE>   9

                  (e)      No Fractional Shares; Fair Market Value. If any
adjustment pursuant to Section 8(a) - (c) would create a fractional share of
Common Stock or a right to acquire a fractional share of Common Stock, such
fractional share shall be disregarded and the number of shares subject to this
Warrant shall be the next higher number of shares, rounding all fractions
upward. "Fair Market Value" per share of Common Stock shall mean (i) in the case
of a security listed or admitted to trading on any securities exchange, the last
reported sale price, regular way (as determined in accordance with the practices
of such exchange), on such day, or if no sale takes place on such day, the
average of the closing bid and asked prices on such day (and in the case of a
security traded on more than one national securities exchange, at such price or
such average, upon the exchange on which the volume of trading during the last
calendar year was the greatest), (ii) in the case of a security not then listed
or admitted to trading on any securities exchange, the last reported sale price
on such day, or if no sale takes place on such day, the average of the closing
bid and asked prices on such day, as reported by a reputable quotation service
designated by the Company, (iii) in the case of a security not then listed or
admitted to trading on any securities exchange and as to which no such reported
sale price or bid and asked prices are available, the average of the reported
high bid and low asked prices on such day, as reported by a reputable quotation
service, or the Wall Street Journal, or if there are no bids and asked prices on
such day, the average of the high bid and low asked prices, as so reported, on
the most recent day (not more than 30 days prior to the date in question) for
which prices have been so reported, and (iv) in the case of a security
determined by the Company's Board of Directors as not having an active quoted
market or in the case of other property, such fair market value as shall be
determined by the Board of Directors.

         9.       PUT AGREEMENT.

                  (a)      The Company hereby irrevocably grants and issues to
Holder the right and option to sell to the Company (the "Put") this Warrant for
a period of thirty (30) days immediately prior to the Expiration Date, at a
purchase price (the "Put Price") equal to the Fair Market Value (as hereinafter
defined) of the shares of Common Stock issuable to Holder upon exercise of this
Warrant less the Exercise Price.

                  (b)      Holder may exercise the Put by delivery of written
notice (the "Put Notice") of such exercise to the Company in the manner and at
the address of the Company set forth in Section 14 hereof. The Company shall pay
to Holder, in cash or by wire transfer of immediately available funds, the Put
Price within thirty (30) days of the receipt of the Put Notice. The Company's
obligation to pay the Purchase Price survives after the Expiration Date of the
Warrant.

                  (c)      For purposes of this Section 9, the Fair Market Value
of the shares of Common Stock of the Company issuable pursuant to this Warrant
shall be determined in accordance with 8(e). In the absence of an established
public market, the fair market value shall be determined as follows:

                           (i)      The Company and the Holder shall each
appoint an independent, experienced appraiser who is a member of a recognized
professional association of business appraisers. The two appraisers shall
determine the value of the shares of Common Stock which would be issued upon the
exercise of the Warrant, assuming that the sale would be between a willing buyer
and a willing seller, both of whom have full knowledge of the financial and
other affairs of the Company, and neither of whom is under any compulsion to
sell or to buy.

                                       9
<PAGE>   10

                           (ii)     If the higher of the two appraisals is not
ten percent (10%) greater than the lower of the appraisals, the Fair Market
Value shall be the average of the two appraisals. If the higher of the two
appraisals is equal to or greater than ten percent (10%) more than the lower of
the two appraisals, then a third appraiser shall be appointed by the two
appraisers, and if they cannot agree on a third appraiser, the American
Arbitration Association shall appoint the third appraiser. The third appraiser,
regardless of who appoints him or her, shall have the same qualifications as the
first two appraisers.

                           (iii)    The Fair Market Value after the appointment
of the third appraiser shall be the mean of the three appraisals.

                           (iv)     The fees and expenses of the appraisers
shall be paid one-half by the Company and one-half by the Holder.

         10.      REGISTRATION.

                  (a)      The Company and the Holder of the Warrant and the
Shares agree that if at any time after the date hereof the Company shall propose
to file a registration statement with respect to any of its Common Stock on a
form suitable for a secondary offering (including its initial public offering),
it will give notice in writing to such effect to the Holder(s) at least thirty
(30) days prior to such filing, and, at the written request of any such
registered holder, made within ten (10) days after the receipt of such notice,
will include therein at the Company's cost and expense (including the fees and
expenses of counsel to such Holder(s), but excluding underwriting discounts,
commissions and filing fees attributable to the Shares included therein) such of
the Shares as such Holder(s) shall request; provided, however, that if the
offering being registered by the Company is underwritten and if the
representative of the underwriters certifies in writing that the inclusion
therein of the Shares would materially and adversely affect the sale of the
securities to be sold by the Company thereunder, then the Company shall be
required to include in the offering only that number of securities, including
the Shares, which the underwriters determine in their sole discretion will not
jeopardize the success of the offering (the securities so included to be
apportioned pro rata among all selling shareholders according to the total
amount of securities entitled to be included therein owned by each selling
shareholder, but in no event shall the total amount of Shares included in the
offering be less than the number of securities included in the offering by any
other single selling shareholder unless all of the Shares are included in the
offering).

                                       10

<PAGE>   11

                  (b)      Whenever the Company undertakes to effect the
registration of any of the Shares, the Company shall, as expeditiously as
reasonably possible:

                           (i)      Prepare and file with the Securities and
Exchange Commission (the "Commission") a registration statement covering such
Shares and use its best efforts to cause such registration statement to be
declared effective by the Commission as expeditiously as possible and to keep
such registration effective until the earlier of (A) the date when all Shares
covered by the registration statement have been sold or (B) one hundred eighty
(180) days from the effective date of the registration statement; provided, that
before filing a registration statement or prospectus or any amendment or
supplements thereto, the Company will furnish to each Holder of Shares covered
by such registration statement and the underwriters, if any, copies of all such
documents proposed to be filed (excluding exhibits, unless any such person shall
specifically request exhibits), which documents will be subject to the review of
such Holders and underwriters, and the Company will not file such registration
statement or any amendment thereto or any prospectus or any supplement thereto
(including any documents incorporated by reference therein) with the Commission
if (A) the underwriters, if any, shall reasonably object to such filing or (B)
if information in such registration statement or prospectus concerning a
particular selling Holder has changed and such Holder or the underwriters, if
any, shall reasonably object.

                           (ii)     Prepare and file with the Commission such
amendments and post-effective amendments to such registration statement as may
be necessary to keep such registration statement effective during the period
referred to in Section 10(b)(i) and to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement, and cause the prospectus to be supplemented by any
required prospectus supplement, and as so supplemented to be filed with the
Commission pursuant to Rule 424 under the Securities Act.

                           (iii)    Furnish to the selling Holder(s) such
numbers of copies of such registration statement, each amendment thereto, the
prospectus included in such registration statement (including each preliminary
prospectus), each supplement thereto and such other documents as they may
reasonably request in order to facilitate the disposition of the Shares owned by
them.

                           (iv)     Use its best efforts to register and qualify
under such other securities laws of such jurisdictions as shall be reasonably
requested by any selling Holder and do any and all other acts and things which
may be reasonably necessary or advisable to enable such selling Holder to
consummate the disposition of the Shares owned by such Holder, in such
jurisdictions; provided, however, that the Company shall not be required in
connection therewith or as a condition thereto to qualify to transact business
or to file a general consent to service of process in any such states or
jurisdictions.

                                       11
<PAGE>   12

                           (v)      Promptly notify each selling Holder of the
happening of any event as a result of which the prospectus included in such
registration statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading and, at the
request of any such Holder, the Company will prepare a supplement or amendment
to such prospectus so that, as thereafter delivered to the purchasers of such
Shares, such prospectus will not contain an untrue statement of a material fact
or omit to state any fact necessary to make the statements therein not
misleading.

                           (vi)     Provide a transfer agent and registrar for
all such Shares not later than the effective date of such registration
statement.

                           (vii)    Enter into such customary agreements
(including underwriting agreements in customary form for a primary offering) and
take all such other actions as the underwriters, if any, reasonably request in
order to expedite or facilitate the disposition of such Shares (including,
without limitation, effecting a stock split or a combination of shares).

                           (viii)   Make available for inspection by any selling
Holder or any underwriter participating in any disposition pursuant to such
registration statement and any attorney, accountant or other agent retained by
any such selling Holder or underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the
officers, directors, employees and independent accountants of the Company to
supply all information reasonably requested by any such seller, underwriter,
attorney, accountant or agent in connection with such registration statement.

                           (ix)     Promptly notify the selling Holder(s) and
the underwriters, if any, of the following events and (if requested by any such
person) confirm such notification in writing: (A) the filing of the prospectus
or any prospectus supplement and the registration statement and any amendment or
post-effective amendment thereto and, with respect to the registration statement
or any post-effective amendment thereto, the declaration of the effectiveness of
such documents, (B) any requests by the Commission for amendments or supplements
to the registration statement or the prospectus or for additional information,
(C) the issuance or threat of issuance by the Commission of any stop order
suspending the effectiveness of the registration statement or the initiation of
any proceedings for that purpose and (D) the receipt by the Company of any
notification with respect to the suspension of the qualification of the Shares
for sale in any jurisdiction or the initiation or threat of initiation of any
proceeding for such purposes.

                           (x)      Make every reasonable effort to prevent the
entry of any order suspending the effectiveness of the registration statement
and obtain at the earliest possible moment the withdrawal of any such order, if
entered.

                           (xi)     Cooperate with the selling Holder(s) and the
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing the Shares to be sold and not bearing any restrictive
legends, and enable such Shares to be in such lots and registered in such names
as the underwriters may request at least two (2) business days prior to any
delivery of the Shares to the underwriters.

                                       12
<PAGE>   13

                           (xii)    Provide a CUSIP number for all the Shares
not later than the effective date of the registration statement.

                           (xiii)   Prior to the effectiveness of the
registration statement and any post-effective amendment thereto and at each
closing of an underwritten offering, (A) make such representations and
warranties to the selling Holder(s) and the underwriters, if any, with respect
to the Shares and the registration statement as are customarily made by issuers
in primary underwritten offerings; (B) use its best efforts to obtain "cold
comfort" letters and updates thereof from the Company's independent certified
public accountants addressed to the selling Holders and the underwriters, if
any, such letters to be in customary form and covering matters of the type
customarily covered in "cold comfort" letters by underwriters in connection with
primary underwritten offerings; (C) deliver such documents and certificates as
may be reasonably requested (1) by the holders of a majority of the Shares being
sold, and (2) by the underwriters, if any, to evidence compliance with clause
(A) above and with any customary conditions contained in the underwriting
agreement or other agreement entered into by the Company; and (D) obtain
opinions of counsel to the Company and updates thereof (which counsel and which
opinions shall be reasonably satisfactory to the underwriters, if any), covering
the matters customarily covered in opinions requested in underwritten offerings
and such other matters as may be reasonably requested by the selling Holders and
underwriters or their counsel. Such counsel shall also state that no facts have
come to the attention of such counsel which cause them to believe that such
registration statement, the prospectus contained therein, or any amendment or
supplement thereto, as of their respective effective or issue dates, contains
any untrue statement of any material fact or omits to state any material fact
necessary to make the statements therein not misleading (except that no
statement need be made with respect to any financial statements, notes thereto
or other financial data or other expertized material contained therein). If for
any reason the Company's counsel is unable to give such opinion, the Company
shall so notify the Holders of the Shares and shall use its best efforts to
remove expeditiously all impediments to the rendering of such opinion.

                           (xiv)    Otherwise use its best efforts to comply
with all applicable rules and regulations of the Commission, and make generally
available to its security holders earnings statements satisfying the provisions
of Section 11(a) of the Securities Act, no later than forty-five (45) days after
the end of any twelve-month period (or ninety (90) days, if such period is a
fiscal year) (A) commencing at the end of any fiscal quarter in which the Shares
are sold to underwriters in a firm or best efforts underwritten offering, or (B)
if not sold to underwriters in such an offering, beginning with the first month
of the first fiscal quarter of the Company commencing after the effective date
of the registration statement, which statements shall cover such twelve-month
periods.

                  (c)      After the date hereof, the Company shall not grant to
any holder of securities of the Company any registration rights which have a
priority greater than or equal to those granted to Holders pursuant to this
Warrant without the prior written consent of the Holder(s).

                                       13
<PAGE>   14

                  (d)      The Company's obligations under Section 10(a) above
with respect to each Holder of Shares are expressly conditioned upon such
Holder's furnishing to the Company in writing such information concerning such
holder and the terms of such holder's proposed offering as the Company shall
reasonably request for inclusion in the registration statement. If any
registration statement including any of the Shares is filed, then the Company
shall indemnify each Holder thereof (and each underwriter for such holder and
each person, if any, who controls such underwriter within the meaning of the
Securities Act) from any loss, claim, damage or liability arising out of, based
upon or in any way relating to any untrue statement of a material fact contained
in such registration statement or any omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except for any such statement or omission based on information
furnished in writing by such Holder of the Shares expressly for use in
connection with such registration statement; and such holder shall indemnify the
Company (and each of its officers and directors who has signed such registration
statement, each director, each person, if any, who controls the Company within
the meaning of the Securities Act, each underwriter for the Company and each
person, if any, who controls such underwriter within the meaning of the
Securities Act) and each other such Holder against any loss, claim, damage or
liability arising from any such statement or omission which was made in reliance
upon information furnished in writing to the Company by such holder of the
Shares expressly for use in connection with such registration statement.

                  (e)      For purposes of this Section 10, all of the Shares
shall be deemed to be issued and outstanding.

                  (f)      In connection with any registration or qualification
of securities under this Section 10, the Company agrees to indemnify the Holder
hereof and the holders of any shares of Common Stock issuable upon the exercise
hereof and each underwriter thereof, including each person, if any, who controls
the holder or such stockholder or underwriter within the meaning of Section 15
of the Securities Act, against all losses, claims, damages, liabilities and
expenses (including reasonable costs of investigation and the costs, fees and
expenses of legal counsel) caused by any untrue, or alleged untrue, statement of
a material fact contained in any registration statement, preliminary prospectus,
prospectus or notification or offering circular (as amended or supplemented if
the Company shall have furnished any amendments or supplements thereto) or
caused by any omission, or alleged omission, to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except insofar as such losses, claims, damages, liabilities or
expenses are caused by any untrue statement or alleged untrue statement or
omission or alleged omission based upon information furnished in writing to the
Company by the holder or any such stockholder or underwriter expressly for use
therein. The Company and each officer, director and controlling person of the
Company shall be indemnified respectively by the Holder of this Warrant and by
the holders of any Shares for all such losses, claims, damages, liabilities and
expenses (including the costs of reasonable investigation and the costs, fees
and expenses of legal counsel) caused by any such untrue, or alleged untrue,
statement or any such omission or alleged omission, based upon information
furnished in writing to the Company by the Holder hereof or any such stockholder
expressly for use therein, provided that the liability of each Holder hereof or
any such stockholder shall be limited to the dollar amount of the net proceeds
of the Shares actually sold by such Holder pursuant to the registration
statement.

                                       14
<PAGE>   15

                           (i)      The indemnifying party shall be entitled to
participate in and, to the extent it may wish, jointly with any other
indemnifying party, to assume the defense of such action at its own expense,
with counsel chosen by it and reasonably satisfactory to such indemnified party.
The indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of
such counsel (other than reasonable costs of investigation) shall be paid by the
indemnified party unless (a) the indemnifying party agrees to pay the same, (b)
the indemnifying party fails to assume the defense of such action with counsel
reasonably satisfactory to the indemnified party or (c) the named parties to any
such action (including any impleaded parties) have been advised by such counsel
that representation of such indemnified party and the indemnifying party by the
same counsel would be inappropriate under applicable standards of professional
conduct (in which case the indemnifying party shall not have the right to assume
the defense of such action on behalf of such indemnified party). No indemnifying
party shall be liable for any settlement entered into without its consent, which
consent shall not be withheld unreasonably.

                           (ii)     The reimbursements required to be made by
the Company pursuant to Seciton 10(f) shall be made by periodic payments during
the course of the investigation or defense, as and when bills are received or
expenses incurred.

                           (iii)    If the indemnification provided for in this
Section 10(f) is unavailable or insufficient to hold harmless an indemnified
party in respect to any losses, claims, damages, liabilities, expenses or
actions in respect thereof referred to herein, then each indemnifying party
shall in lieu of indemnifying such indemnified party contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages, liabilities, expenses or actions in such proportion as is appropriate
to reflect the relative fault of the Company, on the one hand, and the Holder of
this Warrant and the holders of any Shares, on the other, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities, expenses or actions as well as any other relevant equitable
considerations, including the failure to give the notice required hereunder. The
Company and the Holder of this Warrant agree that it would not be just and
equitable if contribution pursuant to this Section 10(f)(iii) were determined by
any method of allocation which did not take account of the equitable
considerations referred to above. Notwithstanding the provisions of this Section
10(f)(iii), in no event shall the amount contributed by the Holder of this
Warrant or the holder of any Shares exceed the net proceeds received by such
person from the sale of Shares to which such contribution claim relates. No
person guilty of fraudulent misrepresentations (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who is not guilty of such fraudulent misrepresentation.

                           (iv)     Each Holder of this Warrant and each holder
of Shares, by acceptance hereof or thereof, as the case may be, agrees to the
indemnification and contribution provisions of this Section 10(f).

                                       15
<PAGE>   16

         11.      CERTAIN NOTICES. In case at any time the Company shall propose
to:

                  (a)      declare any cash dividend upon its Common Stock;

                  (b)      declare any dividend upon its Common Stock payable in
stock or make any special dividend or other distribution to the holders of its
Common Stock;

                  (c)      offer for subscription to the holders of any of its
Common Stock any additional shares of stock in any class or other rights;

                  (d)      reorganize, or reclassify the capital stock of the
Company, or consolidate, merge or otherwise combine with, or sell of all or
substantially all of its assets to, another corporation;

                  (e)      voluntarily or involuntarily dissolve, liquidate or
wind up of the affairs of the Company; or

                  (f)      redeem or purchase any shares of its capital stock or
securities convertible into its capital stock; then, in any one or more of said
cases, the Company shall give to the Holder of the Warrant, by certified or
registered mail, (i) at least twenty (20) days' prior written notice of the date
on which the books of the Company shall close or a record shall be taken for
such dividend, distribution or subscription rights or for determining rights to
vote in respect of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding up, and (ii) in the case of
such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, at least twenty (20) days' prior written notice of
the date when the same shall take place. Any notice required by clause (i) shall
also specify, in the case of any such dividend, distribution or subscription
rights, the date on which the holders of Common Stock shall be entitled thereto,
and any notice required by clause (ii) shall specify the date on which the
holders of Common Stock shall be entitled to exchange their Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding up, as the case may be.

         12.      RIGHTS OF CO-SALE.

                  (a)      Morini Investments Limited Partnerships (the
"Management Shareholder shall enter into any transaction that would result in
the sale by it of any Common Stock now or hereafter owned by it, unless prior to
such sale such Management Shareholder shall give written notice (the "Co-Sale
Notice") to Holder addressed and delivered as set forth in Section 14 hereof, of
its intention to effect such sale in order that Holder may exercise its rights
under this Section 12 as hereinafter described. Such notice shall set forth (i)
the number of shares to be sold by such Management Shareholder, (ii) the
principal terms of the sale, including the price at which the shares are
intended to be sold, and (iii) an offer by such Management Shareholder to use
its best efforts to cause to be included with the shares to be sold by it in the
sale, on a share-by-share basis and on the same terms and conditions, the Shares
issuable or issued to Holder pursuant this Warrant.

                                       16
<PAGE>   17

                  (b)      If Holder has not accepted such offer in writing
within a period of ten (10) days from the date of receipt of the Co-Sale Notice,
then such Management Shareholder shall thereafter be free for a period of ninety
(90) days to sell the number of shares specified in the Co-Sale Notice, at a
price no greater than the price set forth in the Co-Sale Notice and on otherwise
no more favorable terms to such Management Shareholder than as set forth in the
Co-Sale Notice, without any further obligation to Holder in connection with such
sale. In the event that such Management Shareholder fails to consummate such
sale within such ninety-day period, the shares specified in Co-Sale Notice shall
continue to be subject to this Section 12.

                  (c)      If Holder accepts such offer in writing within
ten-day period, then such acceptance shall be irrevocable unless such Management
Shareholder shall be unable to cause to be included in the sale the number of
Shares of stock held by Holder and set forth in the written acceptance. In that
event, such Management Shareholder and Holder shall participate in the sale
equally, with such Management Shareholder and Holder each selling half the total
number of such shares to be sold in the sale.

         (d)      The provisions of this Section 12 shall not apply to (i) sales
by the Management Shareholder in customary broker's transactions or (ii) to
other transactions if the amount of Common Stock being sold in any such
transaction (or any series of transactions occurring within six (6) months of
each other to the same purchaser), is less than five percent (5%) of the
Management Shareholder's then current holdings in the Company, provided, that
transactions pursuant to this subsection (ii) shall not exceed 20% of its
holdings on the date hereof in the aggregate.

         13.      ARTICLE AND SECTION HEADINGS. Numbered and titled article and
section headings are for convenience only and shall not be construed as
amplifying or limiting any of the provisions of this Warrant.

         14.      NOTICE. Any and all notices, elections or demands permitted or
required to be made under this Warrant shall be in writing, signed by the party
giving such notice, election or demand and shall be delivered personally,
telecopied, or sent by certified mail or overnight via nationally recognized
courier service (such as Federal Express), to the other party at the address set
forth below, or at such other address as may be supplied in writing and of which
receipt has been acknowledged in writing. The date of personal delivery or
telecopy or two (2) business days after the date of mailing (or the next
business day after delivery to such courier service), as the case may be, shall
be the date of such notice, election or demand. For the purposes of this
Warrant:

The Address of Holder is:                   FINOVA Mezzanine Capital Inc.
                                            Suite 200
                                            500 Church Street
                                            Nashville, TN 37219
                                            Attention: William J. Nutter
                                            Telecopy No. 615/726-1208

with a copy to:                             FINOVA Mezzanine Capital Inc.
                                            Legal Department
                                            Suite 200
                                            500 Church Street
                                            Nashville, TN 37219
                                            Attention: Philip S. Clark, Esq.
                                            Telecopy No. 615/256-9958

The Address of Company is:                  Galaxy Foods Company
                                            2441 Viscount Row
                                            Orlando, FL 32809
                                            Attention: Cynthia L. Hunter
                                            Telecopy No. 407/855-1099

                                       17
<PAGE>   18

with a copy to:                             Baker & Hostetler
                                            200 S. Orange Avenue
                                            Suite 2300
                                            Orlando, FL 32802
                                            Attention: Jeff Decker
                                            Telecopy No. 407/649-4017

         15.      SEVERABILITY. If any provisions(s) of this Warrant or the
application thereof to any person or circumstances shall be invalid or
unenforceable to any extent, the remainder of this Warrant and the application
of such provisions to other persons or circumstances shall not be affected
thereby and shall be enforced to the greatest extent permitted by law.

         16.      ENTIRE AGREEMENT. This Warrant between the Company and Holder
represents the entire agreement between the parties concerning the subject
matter hereof, and all oral discussions and prior agreement are merged herein.

         17.      GOVERNING LAW AND AMENDMENTS. This Warrant shall be construed
and enforced under the laws of the State of Arizona applicable to contracts to
be wholly performed in such State. No amendment or modification hereof shall be
effective except in a writing executed by each of the parties hereto.

         18.      COUNTERPARTS. This Warrant may be executed in any number of
counterparts and be different parties to this Warrant in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same Warrant.

         19.      CONSENT TO JURISDICTION; EXCLUSIVE VENUE. The Company hereby
irrevocably consents to the jurisdiction of the United States District Court and
of all Arizona state courts sitting in Maricopa County, Arizona, for the purpose
of any litigation to which Holder may be a party and which concerns this
Warrant. It is further agreed that venue for any such action shall lie
exclusively with courts sitting in Maricopa County, Arizona unless Holder agrees
to the contrary in writing.

         20.      WAIVER OF TRIAL BY JURY. HOLDER AND THE COMPANY HEREBY
KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY IN ANY
ACTIONS, PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR TORT OR
OTHERWISE, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATING TO THIS
WARRANT.

         21.      EQUITY PARTICIPATION. This Warrant is issued in connection
with the Loan Agreement. It is intended that this Warrant constitute an equity
participation and not constitute interest on the Note. If under any
circumstances whatsoever, fulfillment of any obligation of this Warrant, the
Loan Agreement, or any other agreement or document executed in connection with
the Loan Agreement, shall violate the lawful limit of any applicable usury
statute or any other applicable law with regard to obligations of like character
and amount, then the obligation to be fulfilled shall be reduced to such

                                       18
<PAGE>   19

lawful limit, such that in no event shall there occur, under this Warrant, the
Loan Agreement, or any other document or instrument executed in connection with
the Loan Agreement, any violation of such lawful limit, but such obligation
shall be fulfilled to the lawful limit. If any sum is collected in excess of the
lawful limit, such excess shall be applied to reduce the principal amount of the
Note.

                                       19
<PAGE>   20

         IN WITNESS WHEREOF, the parties hereto have set their hands as of the
date first above written.

                                                COMPANY:

                                                GALAXY FOODS COMPANY
                                                a Delaware corporation

                                                By: /s/ Cynthia Hunter
                                                    --------------------------
                                                    Title: Corporate Secretary

                                                HOLDER:

                                                FINOVA MEZZANINE CAPITAL INC.
                                                a Tennessee corporation

                                                By: Robert Bourquin
                                                    --------------------------
                                                    Title: Vice President

         IN WITNESS WHEREOF, the parties hereto have executed or caused this
Warrant to be executed as of the date first above written for the purpose of
agreeing to the terms and conditions of Section 12 hereof.

                                       20<PAGE>   1
                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT is dated the 1st day of September, 2000, among Hamilton
Bancorp Inc., a Florida corporation, Hamilton Bank, N.A. (the "Bank"), a
national banking association located in Miami, Florida (collectively, the
"Company"), and John F. Stumpff (the "Executive").

                                  INTRODUCTION

         The Boards of Directors of the Company have determined that it is in
the best interests of the Company to retain the Executive's services and to
reinforce and encourage the continued attention and dedication of the Executive
to his assigned duties without distraction in potentially disturbing
circumstances arising from the possibility of a change in control of the Company
or the assertion of claims and actions against employees.

                                    AGREEMENT

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

1. EMPLOYMENT. Upon the terms and subject to the conditions contained in this
Agreement, the Executive agrees to provide full-time services for the Company
during the term of this Agreement. The Executive agrees to devote his best
efforts to the business of the Company and shall perform his duties in a
diligent, trustworthy, and business-like manner, all for the purpose of
advancing the business of the Company.

2. DUTIES. The duties of the Executive shall be those duties which can
reasonably be expected to be performed by a person who is a senior executive of
a national chartered bank. The Executive shall report as directed by the Board
of Directors of the Company. The Executive's duties may, from time to time, be
changed or modified at the discretion of the Board of Directors or the CEO of
the Company.

3. EMPLOYMENT TERM. Subject to the terms and conditions hereof, the Company
agrees to employ the Executive for a term of two years and four months,
commencing as of September 1, 2000 (the "Effective Date") and continuing through
December 31, 2002, unless renewed under this Section 3. The Company may
terminate the Executive's employment prior to the end of the two-year term
through a Termination Due to Disability under Section 5(a), a Termination With
Cause under Section 5(b) or Termination Without Cause under Section 5(c).

The term of this Agreement shall be automatically extended for an additional
year each December 31, commencing December 31, 2001, unless either the Company
or the Executive provides written notice of election not to renew, at least 45
days before the applicable December 31.

4. SALARY AND BENEFITS.

(a) Base Salary. The Company shall, during the term of this Agreement, pay the
Executive an annual base salary in effect as of the date of the Agreement
through December 31, 2000. Thereafter, base salary shall be reviewed by the
Company at least annually and any base salary increase shall be effective each
January 1, beginning January 1, 2001. The Company may not, however, reduce the
Executive's base salary at any time during the term of this Agreement.

(b) Annual Incentive Payment. Each year during this Agreement, the Executive
shall be eligible to receive an annual incentive payment (the "Annual Incentive
Payment). The amount actually awarded to the Executive will be determined by the
Company's or the Bank's Compensation Committee. Any applicable bonus shall be
paid by February 28 of each year (with the first bonus payable by February 28,
2001, relating to the 2000 year).

                                       1
<PAGE>   2

(c) Stock Options. The Company shall provide a stock option program to the
Executive in accordance with the 1998 and 2000 Executive Incentive Plans, as
amended or replaced by a successor plan approved by the Company's Board of
Directors and, if necessary, its shareholders. The Executive will not be
eligible to participate in any stock option plans reserved for outside
directors.

(d) Life Insurance. The Company shall provide life insurance coverage on the
life of the Executive in accordance with the Company's Group Term Life Insurance
Plan. The life insurance benefit will be paid upon death according to the
following schedule; however, the death benefit is limited to a maximum of
$350,000.

                     Years of Service        Death Benefit
                     ----------------        -------------

                           1-5               2 x Salary
                           5-10              3 x Salary
                           10-15             4 x Salary
                           15+               5 x Salary

(e) Vacation. The Executive shall be entitled to the number of weeks of paid
vacation during each full year of his employment hereunder in accordance with
the vacation policy adopted by the Company. In addition, upon any Termination
under Section 5, except for Termination for Cause, the Executive will be paid
any vacation earned in the calendar year of the termination but not taken
through the date of the termination.

(f) Reimbursement of Expenses. The Company shall reimburse the Executive for all
reasonable out-of-pocket expenses incurred by the Executive in the course of his
duties, in accordance with any business conducted on behalf of the Company.

(g) Employee Benefits. The Executive shall be entitled to participate in the
employee benefit programs generally available to employees of the Company, and
to all normal perquisites provided to senior executive officers of the Company.

(h) Benefits Not in Lieu of Compensation. No benefit or perquisite provided to
the Executive shall be deemed to be in lieu of base salary, bonus, or other
compensation.

5. TERMINATION OF EMPLOYMENT. The Board of Directors of the Company may
terminate the employment of the Executive at any time as it deems appropriate.

(a) Disability. The Company may terminate the Executive's employment for
Disability if the Executive is incapacitated or absent and unable to perform
substantially all the regular Duties of his employment as defined under the
Total Disability From Your Own Occupation under the Company's Long Term
Disability Plan. If, during the term of this Agreement, the Executive's
employment terminates due to Disability, the Company shall provide long term
disability insurance that provides for an annual benefit of 2/3 of the
Executive's Base Salary; however, this benefit is limited to the maximum allowed
under the Company's Long Term Disability Plan in effect from time to time, but
not less than $6,000 per month.

(b) Voluntary Resignation or Termination for Cause. If the Executive shall
voluntarily terminate his employment for other than Good Reason or if the
Company shall discharge the Executive for Cause, as defined herein, this
Agreement shall terminate immediately and the Company shall have no further
obligation to make any payment under this Agreement which has not already become
payable, but has not yet been paid, provided, however, that with respect to any
stock options, restricted stock, incentive plans, deferred compensation
arrangements, or other plans or programs in which the Executive is participating
at the time of termination of his employment, the Executive's rights and
benefits under each such plan shall be determined in accordance with the terms,
conditions, and limitations of the plan and any separate agreement executed by
the Executive which may then be in effect.

For the purposes of this Agreement, the Company shall have "Cause" to terminate
the Executive's employment hereunder upon:

                                       2
<PAGE>   3

(i)      the willful and continued failure by the Executive to perform his
         duties with the Company (other than any such failure resulting from
         incapacity due to Disability), after a demand for specific performance
         is delivered to the Executive by the Board which identifies individual
         goals and objectives which must be accomplished to remedy the
         Executive's performance, as well as provides rationale as to the reason
         the Board believes that he has not historically performed his duties;

(ii)     the willful engaging by the Executive in gross misconduct materially
         and demonstrably injurious to the Company. For purposes of this
         paragraph, no act, or failure to act, on the Executive'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 the Company.

(c) Termination Without Cause or Resignation for Good Reason. If during the term
of the Agreement, the Executive's employment is terminated by the Company
without Cause or the Executive voluntarily terminates his employment for Good
Reason, as defined herein:

(i)      Base Salary. The Company shall pay the Executive in a lump sum an
         amount equal to the remaining term of this Agreement times the current
         annual base salary as provided in Section 4(a) in effect at the date of
         termination;

(ii)     Annual Incentive. To compensate the Executive for the current year's
         annual incentive, the Company shall pay to the Executive in a lump sum
         an amount equal to two times the aggregate amount paid to the Executive
         under Sections 4(b) for the most recently completed calendar year
         multiplied by a ratio whose numerator is the number of the current
         month as of the date of termination and the denominator is twelve.

(iii)    (iii) Nonqualified Retirement Plans and Stock Options. The Company
         shall pay to the Executive any amounts due under Section 4(c) according
         with the terms, conditions and limitations of the plans and any
         separate agreements under Section 4(c) without regard to "vesting"
         thereunder.

For purposes of this Agreement, the term "Good Reason" shall mean:

(i)      Without his express written consent, the assignment to the Executive of
         any duties inconsistent with his positions, duties, responsibilities
         and status with the Company, or a change in his reporting
         responsibilities, titles or offices, or any removal of the Executive
         from or any failure to re-elect the Executive to any of such positions,
         except in connection with the termination of his employment for Cause,
         Disability or retirement or as a result of his death or by the
         Executive other than for Good Reason;

(ii)     A reduction by the Company in the Executive's base salary as in effect
         on the date hereof or as the same may be increased from time to time;

(iii)    Without his express written consent the failure by the Company to
         continue in effect any Stock Options under Section 4(c), the Life
         Insurance under Section 4(d) in which the Executive is participating
         (or plans providing substantially similar benefits), the taking of any
         action by the Company which would adversely affect the Executive's
         participation in or materially reduce his benefits under any of such
         plans or deprive him of any material fringe benefit enjoyed by him, or
         the failure by the Company to provide the Executive with the number of
         paid vacation days to which he is then entitled on the basis of years
         of service with the Company in accordance with the Company's normal
         vacation policy in effect on the date hereof; or

(iv)     Any failure of the Company to obtain the assumption of, or the
         agreement to perform, this Agreement by any successor as contemplated
         in Section 16(a) hereof.

6. PERFORMANCE BONUS UPON CERTAIN CHANGES OF CONTROL. If a Change of Control
occurs during the term of this Agreement and if the compensation paid upon such
Change of Control on a per share basis equals or exceeds the closing price of a
share of the Company's common stock on the date hereof plus twenty percent
thereof, the Executive shall be paid a performance bonus equal to the
Executive's compensation paid by the Company and its affiliates which was
includible in the Executive's gross income during the most recent taxable year
ending before the date of the Change of Control, provided, however, if a Change
of Control occurs prior to December 31, 2001, the Executive shall be paid a
performance bonus equal to the Executive's annualized calendar year 2000
compensation paid by the Company in the last quarter of calendar year 2000.

The term "Change of Control" as used in this Agreement shall have the following
meaning:

                                       3
<PAGE>   4

(i)      A reorganization, merger, consolidation or other form of corporate
         transaction or series of transactions, in each case, with respect to
         which persons who were the shareholders of the Company immediately
         prior to such reorganization, merger or consolidation or other
         transaction do not, immediately thereafter, directly or indirectly, own
         more than 80% of the combined voting power entitled to vote generally
         in the election of director of the reorganized, merged or consolidated
         entity's then outstanding voting securities;

(ii)     A liquidation or dissolution of the Company;

(iii)    The sale of more than 50% of the assets of the Company to any person or
         entity not controlled by or under common control with the Company
         (unless such reorganization, merger, consolidation or other corporate
         transaction, liquidation, dissolution or sale is subsequently
         abandoned); or

(iv)     The acquisition by any person, entity or "group", within the meaning of
         Section 13 (d) (3) or 14 (d) (2) of the Securities Exchange Act,
         (excluding any employee benefit plan of the Company or its subsidiaries
         which acquires beneficial ownership (within the meaning of Rule 13d-3
         promulgated under the Securities Exchange Act)) of more than twenty
         percent (20%) of either the then outstanding shares of common stock or
         the combined voting power of the Company's then outstanding voting
         securities entitled to vote generally in the election of directors.

7. TERMINATION AFTER CHANGE OF CONTROL BENEFIT.

(a) Termination. If within 24 months after a Change of Control, the Company
shall terminate the Executive's employment other than pursuant to Section 5(a)
or 5(b) hereof or if the Executive shall terminate his employment for Good
Reason, then the Company shall pay to the Executive a benefit as defined in
Section 7(b).

(b) Amount. Upon a termination after a Change of Control as provided in Section
7(a), the Executive will receive a Change of Control Benefit equal to the
greater of (i) two (2) times the Executive's Base Annual Compensation as defined
in Section 7(c) at the date of the Change of Control assuming the individual is
in good employment or (ii) the amount payable to the Executive as provided in
Section 5(c).

(c) Base Annual Compensation. The Executive's compensation paid by the Company
and its affiliates which was includible in the Executive's gross income during
the most recent taxable year ending before the date of the Change of Control
(including, amounts includible in compensation, i.e., the base salary and cash
annual incentive prior to any deferred arrangements) provided, however, that
such amount shall not exceed an amount equal to three (3) times the Executive's
average annualized compensation paid by the Company and its affiliates which was
includible in the Executive's gross income during the most recent five taxable
years ending before the date of the Change of Control (defined as the
individual's "base amount" under Section 280G of the Internal Revenue Code of
1986, as amended).

(d) Nonqualified Retirement Plans and Stock Options. The Company shall also pay
to the Executive any amounts due under Section 4(c) according with the terms,
conditions and limitations of the plans and any separate agreements under
Section 4(c) without regard to "vesting" thereunder.

(e) Consideration of Benefit. As consideration for the benefit paid in Section
7, the Executive agrees to work with the new organization for a period of no
less than six months. If the organization, however, terminates the employment of
the Executive except under Termination for Cause, the Executive is still
entitled to the benefit specified under this section 7.

(f) Limitation of Benefit: Notwithstanding anything to the contrary in this
Agreement, if there are payments to the Employee which constitute "parachute
payments," as defined in Section 280G of the Code, then the payments made to the
Executive shall be the maximum of (x) one dollar ($1.00) less than the amount
which would cause the payments to the Employee (including payments to the
Employee which are not included in this Agreement) to be subject to the excise
tax imposed by Section 4999 of the Code, and (y) the payments to the Employee
(including payments to the Employee which are not included in the Agreement)
after taking into account the excise tax imposed by Section 4999 of the Code.

(g) Payment of Benefit. The Company shall pay any Change of Control Benefit
payable as provided in this Section 7 in a lump sum upon the Executive's
Termination of Employment.

8. CONFIDENTIAL INFORMATION. The Executive recognizes and acknowledges that he
will have access to certain

                                       4
<PAGE>   5

information of the Company and that such information is confidential and
constitutes valuable, special and unique property of the Company. The Executive
shall not at any time, either during or subsequent to the term of this
Agreement, disclose to others, use, copy or permit to be copied, except in
pursuance of his duties for and on behalf of the Company, it successors, assigns
or nominees, any Confidential Information of the Company (regardless of whether
developed by the Executive) without the prior written consent of the Company.

The term "Confidential Information" with respect to any person means any secret
or confidential information or know-how and shall include, but shall not be
limited to, the plans, customers, costs, prices, uses, and applications of
products and services, results of investigations, studies owned or used by such
person, and all products, processes, compositions, computer programs, and
servicing, marketing or operational methods and techniques at any time used,
developed, investigated, made or sold by such person, before or during the term
of this Agreement, that are not readily available to the public or that are
maintained as confidential by such person. The Executive shall maintain in
confidence any Confidential Information of third parties received as a result of
his employment with the Company in accordance with the Company's obligations to
such third parties and the policies established by the Company.

9. DELIVERY OF DOCUMENTS UPON TERMINATION. The Executive shall deliver to the
Company or its designee at the termination of his employment all correspondence,
memoranda, notes, records, drawings, sketches, plans, customer lists, product
compositions, and other documents and all copies thereof, made, composed or
received by the Executive, solely or jointly with others, that are in the
Executive's possession, custody, or control at termination and that are related
in any manner to the past, present, or anticipated business or any member of the
Company.

10. NO TAMPERING. Throughout the term of the Agreement and through the second
anniversary of the expiration thereof, the Executive shall not (a) request,
induce or attempt to influence any customers of the Company to curtail or cancel
any business they may transact with the Company; or (b) request, induce or
attempt to influence any employee of the Company to terminate his employment
with the Company.

11. RELOCATION. The Company's requiring the Executive to be based anywhere other
than Miami, Florida except for required travel on the Company's business to an
extent substantially consistent with his present business travel obligations,
or, in the event the Executive consents to any relocation, the failure by the
Company to pay (or reimburse the Executive) for all reasonable moving expenses
incurred by him relating to a change of his principal residence in connection
with such relocation and to indemnify the Executive against any loss (defined as
the difference between the actual sale price of such residence and the higher of
(a) his aggregate investment in such residence or (b) the fair market value of
such residence as determined by a real estate appraiser designated by the
Executive and reasonably satisfactory to the Company) realized on the sale of
the Executive's principal residence in connection with any such change of
residence, shall constitute Good Reason for the Executive to voluntarily
terminate his employment.

12. PUBLICITY AND ADVERTISING. The Executive agrees that the Company may use his
name, picture, or likeness for any advertising, publicity, or other business
purpose at any time, during the term of the Agreement and may continue to use
materials generated during the term of the Agreement for a period of six months
thereafter. The Executive shall receive no additional consideration if his name,
picture or likeness is so used. The Executive further agrees that any negatives,
prints or other material for printing or reproduction purposes prepared in
connection with the use of his name, picture or likeness by the Company shall be
and are the sole property of the Company.

13. REMEDIES. The Executive acknowledges that a remedy at law for any breach or
attempted breach of the Executive's obligations under Sections 8 through 10 may
be inadequate, agrees that the Company may be entitled to specific performance
and injunctive and other equitable remedies in case of any such breach or
attempted breach, and further agrees to waive any requirement for the securing
or posting of any bond in connection with the obtaining of any such injunctive
or other equitable relief. The Company shall have the right to offset against
amounts to be paid to the Executive pursuant to the terms hereof any amounts
from time to time owing by the Executive to the Company. The termination of the
Agreement pursuant to Section 3, 5(a) or 5(b) shall not be deemed to be a waiver
by the Company of any breach by the Executive of this Agreement or any other
obligation owed the Company, and notwithstanding such a termination the
Executive shall be liable for all damages attributable to such a breach.

14. DISPUTE RESOLUTION. Subject to the Company's right to seek injunctive relief
in court as provided in Section 13 of this Agreement, any dispute, controversy
or claim arising out of or in relation to or connection to this Agreement,
including without limitation any dispute as to the construction, validity,
interpretation, enforceability or breach of this Agreement, shall be exclusively
and finally settled by arbitration, and any party may submit such dispute,
controversy or

                                       5
<PAGE>   6

claim, including a claim for indemnification under this Section 14, to
arbitration.

(a) Arbitrators. The arbitration shall be heard and determined by one
arbitrator, who shall be impartial and who shall be selected by mutual agreement
of the parties; provided, however, that if the dispute involves more than
$1,000,000, then the arbitration shall be heard and determined by three (3)
arbitrators. If three (3) arbitrators are necessary as provided above, then (i)
each side shall appoint an arbitrator of its choice within thirty (30) days of
the submission of a notice of arbitration and (ii) the party-appointed
arbitrators shall in turn appoint a presiding arbitrator of the tribunal within
thirty (30) days following the appointment of the last party-appointed
arbitrator.

(b) Proceedings. Unless otherwise expressly agreed in writing by the parties to
the arbitration proceedings:

(i)      The arbitration proceedings shall be held in Miami, Florida, at a site
         chosen by mutual agreement of the parties, or if the parties cannot
         reach agreement on a location within thirty (30) days of the
         appointment of the last arbitrator, then at a site chosen by the
         arbitrators;

(ii)     The arbitrators shall be and remain at all times wholly independent and
         impartial;

(iii)    The arbitration proceedings shall be conducted in accordance with the
         Commercial Arbitration Rules of the American Arbitration Association,
         as amended from time to time;

(iv)     Any procedural issues not determined under the arbitral rules selected
         pursuant to item (iii) above shall be determined by the law of the
         place of arbitration, other than those laws which would refer the
         matter to another jurisdiction;

(v)      The costs of the arbitration proceedings (including attorneys' fees and
         costs) shall be borne in the manner determined by the arbitrators;

(vi)     The decision of the arbitrators shall be reduced to writing; final and
         binding without the right of appeal; the sole and exclusive remedy
         regarding any claims, counterclaims, issues or accounting presented to
         the arbitrators; made and promptly paid in United States dollars free
         of any deduction or offset; and any costs or fees incident to enforcing
         the award shall, to the maximum extent permitted by law, be charged
         against the party resisting such enforcement;

(vii)    The award shall include interest from the date of any breach or
         violation of this Agreement, as determined by the arbitral award, and
         from the date of the award until paid in full, at 6% per annum; and

(viii)   Judgment upon the award may be entered in any court having jurisdiction
         over the person or the assets of the party owing the judgment or
         application may be made to such court for a judicial acceptance of the
         award and an order of enforcement, as the case may be.

(c) Acknowledgment of Parties. Each party acknowledges that he or it has
voluntarily and knowingly entered into an agreement to arbitration under this
Section by executing this Agreement.

15. INDEMNIFICATION. The Executive shall be protected against any and all legal
actions when he is either a party, witness or a participant in any legal action
brought against the Company. He will be protected through any programs that
cover the outside directors or other executives of the Company.

16. MISCELLANEOUS PROVISIONS.

(a) Successors of the Company. The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company, by agreement in
form and substance satisfactory to the Executive, expressly to assume and agree
to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain such agreement prior to the effectiveness of
any such succession shall be a breach of this Agreement and shall entitle the
Executive to compensation from the Company in the same amount and on the same
terms as the Executive would be entitled hereunder if the Executive terminated
his employment for Good Reason, except that for purposes of implementing the
foregoing, the date on which any such succession becomes effective shall be
deemed the Date of Termination. As used in this Agreement, "Company" shall mean
the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 16 or which otherwise becomes bound by all the terms and provisions
of this Agreement by operation of law.

                                       6
<PAGE>   7

(b) Executive's Heirs, etc. The Executive may not assign his rights or delegate
his duties or obligations hereunder without the written consent of the Company.
This Agreement shall inure to the benefit of and be enforceable by the
Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive should
die while any amounts would still be payable to him hereunder as if he had
continued to live, all such amounts, unless other provided herein, shall be paid
in accordance with the terms of this Agreement to his designee or, if there be
no such designee, to his estate.

(c) Notice. For the purposes of this Agreement, notices and all other
communications provide for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below, provided that all notices
to the Company shall be directed to the attention of the Chief Executive Officer
of the Company with a copy to the Secretary of the Company, or to such other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

(d) Amendment or Waiver. No provisions of this Agreement may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to in
writing signed by the Executive and such officer as may be specifically
designated by the Board of Directors of the Company (which shall in any event
include the Company's Chief Executive Officer). No waiver by either party hereto
at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not set forth expressly in this
Agreement.

(e) Invalid Provisions. Should any portion of this Agreement be adjudged or held
to be invalid, unenforceable or void, such holding shall not have the effect of
invalidating or voiding the remainder of this Agreement and the parties hereby
agree that the portion so held invalid, unenforceable or void shall, if
possible, be deemed amended or reduced in scope, or otherwise be stricken from
this Agreement to the extent required for the purposes of validity and
enforcement thereof.

(f) Survival of the Executive's Obligations. The Executive's obligations under
this Agreement shall survive regardless of whether the Executive's employment by
the Company is terminated, voluntarily or involuntarily, by the Company or the
Executive, with or without Cause.

(g) Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

(h) Governing Law. This Agreement shall be governed by and construed under the
laws of the State of Florida.

(i) Captions and Gender. The use of captions and Section headings herein is for
purposes of convenience only and shall not effect the interpretation or
substance of any provisions contained herein. Similarly, the use of the
masculine or feminine gender with respect to pronouns in this Agreement is for
purposes of convenience and includes either sex who may be a signatory.

                                       7
<PAGE>   8

IN WITNESS WHEREOF, the Executive and duly authorized Company officers have
signed this Agreement.

EXECUTIVE:                          COMPANY:

                                    HAMILTON BANCORP INC.

-------------------------
John F. Stumpff                     By
                                       -----------------------------------------
                                       Title:

Address:
1540 N.W. 101 Avenue                By
Plantation, Florida 33322              -----------------------------------------
                                       Title:

                                              HAMILTON BANK, N.A.

                                              By
                                                 -------------------------------
                                              Title:

                                              By
                                                 -------------------------------
                                              Title:

                                              3750 N.W. 87th Avenue
                                              Miami, Florida 33178

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]