Document:

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                                                                   EXHIBIT 10.12

May 10, 2002

Bob Dunlap
3753 Harbor Acres Lane
Jacksonville, FL 32257

RE:      Hamilton Bank Bonus/Compensation/Stock Agreement

Dear Bob:

Thank you for all your efforts for Intrepid Capital. Everyone here is in total
admiration of your skills, your organization, your intellect, your dedication to
the task, and your willingness to be removed from your family temporarily.

I appreciate very much your outlining a five-and six-month bonus calculation, as
well as your willingness to consider cash, stock options, and deferred
compensation as elements of a bonus.

Bob, I asked Mike to review your work to be sure that we are not overlooking
anything in our discussion. He suggested that we add interest, etc., and bonuses
to others in our calculation.

I fully appreciate your suggested 40% of net and the fact that it is net versus
other current arrangements, but I do want to point out some dissimilar aspects
just to fully develop our conversation. The typical 40% payout person has no
guaranteed income or salary, requires no company financing or substantial risk,
or employing multiple other people, and the attendant insurance, etc.

Regardless of that, I'm glad that we got together in a very lean period for us
in November 2000, and I'm obviously thrilled that our association led to the
Hamilton Bank and the pending acquisition of First Bank of Jacksonville. It has
been a terrific relationship to date, and I think the future will outshine the
past.

Having said all that, let me propose a three-pronged and possibly four-pronged
approach to a bonus arrangement that fully rewards your efforts:

         1.       Cash - $300,000 payable $100,000 immediately (May 15, 2002)
                  and the balance as you desire and in no case later than the
                  final FDIC payment on the original Hamilton Bank contract.

         2.       Deferred Income - $300,000 payable $100,000 per year for the
                  years 2003, 2004, and 2005, payable $25,000 per quarter on the
                  first payroll in each quarter.

         3.       Stock Options - An option to buy up to 200,000 shares of
                  Intrepid stock at $2/per share. (This is our standard employee
                  stock option plan.)

All of these elements are in addition to other compensation anticipated for
running First Bank or other duties that you may undertake at the conclusion of
the Hamilton Bank obligation.

         4.       Additional Long-term Deferred Compensation Potential - After
                  the risk exposure is lessened in the First Bank acquisition,
                  the use of the life insurance contract to help fund an income
                  to you and/or your family in the event of death, disability,
                  or retirement. This is a fairly typical non-
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                  qualified deferred compensation agreement in which the
                  payments to you or your family are deductible and ultimately
                  the proceeds are tax-free to Intrepid. This plan is not
                  currently in place, but it is my thought that on a selected
                  basis, this can be a valuable additional element in key person
                  compensation.

Let's try to get to an agreement today so that the Intrepid share price doesn't
impact you adversely.

Again, thank you for a truly yeoman performance!

Warmest regards,

/s/ Forrest Travis

Forrest Travis
President and CEO               ACKNOWLEDGED AND AGREED TO:
/lb

                                 /s/ Robert B. Dunlap             5/10/02
                                --------------------           -------------
                                Robert B. Dunlap                   date

                                       2<PAGE>
                                                                    EXHIBIT 10.1

                                AMENDMENT NO. 9
        ASSIGNMENT OF AGREEMENT BETWEEN KANSAS DEPARTMENT OF CORRECTIONS
                                       AND
                          PRISON HEALTH SERVICES, INC.

         THIS AMENDMENT is made and entered into on this 19th day of August,
2003, by and among the Kansas Department of Corrections ("Department") and
Prison Health Services, Inc. ("Contractor").

WITNESSETH:

         WHEREAS, the parties entered into a contract for provision of health
care services by Contractor for inmates in the facilities of the Department, on
date of February 23, 1999, as subsequently amended on October 1, 1999, February
17, 2000, June 22, 2000, December 31, 2000, February 28, 2001, May 10, 2001,
December 4, 2001, and June 27, 2002 (all of which are collectively referenced as
the "Original Agreement"); and

         WHEREAS, the parties now agree to assign and novate the Original
Agreement, as amended, to Health Cost Solutions, Inc. ("HCS") as of October 1,
2003 (the "Assignment Date");

         NOW THEREFORE, in consideration of the foregoing, it is mutually
covenanted and agreed as follows:

         1.       Contractor agrees to fulfill and complete its duties owed to
                  HCS under terms of the General Assignment, Novation and
                  Assumption Agreement of August 20, 2003, during the transition
                  period leading up to the - Assignment Date, including taking
                  the pharmacy inventory, taking the medical and surgical supply
                  inventory, making the Contractor's employees available for
                  interviews, and making the Regional Vice President available
                  for interviews. The Original Agreement shall be assigned to
                  HCS as of the Assignment Date, and such assignment shall
                  operate as a novation as to Contractor, its affiliates,
                  officers and directors, of all rights, liabilities and
                  obligations under the Original Agreement in all respects
                  arising thereafter, subject to the exceptions specified below.

         2.       As of the Assignment Date, the Department agrees to return the
                  performance bond under the Original Agreement to Contractor.

         3.       As of the Assignment Date, the Department agrees to release
                  Contractor from all obligations under the Original Agreement
                  thereafter arising and look solely to HCS for the performance
                  of any and all services thereafter arising under the Original
                  Agreement, subject to the following specified duties and
                  responsibilities, which Contractor shall continue to perform
                  and discharge on and after the Assignment Date, to wit:

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                  (a). Contractor shall fully observe and comply with the
                  contents of Section 3.15 of the Request for Proposal, Contract
                  No. 33158 (hereafter "RFP"), concerning confidentiality of all
                  data collected by it in connection with performance of the
                  Original Agreement.

                  (b). Contractor shall fully observe and comply with the
                  contents of Section 3.19 of the RFP, concerning
                  indemnification of the Department and the State of Kansas,
                  their agents, employees, and officers, as to any and all
                  suits, actions, losses, liability, damages, expenses,
                  reasonable attorney fees (not including salaries of attorneys
                  regularly employed by the State of Kansas), judgments or
                  settlements incurred by the Department, the State or their
                  agents, employees or officers arising out of correctional
                  health care services by the Contractor, its employees or
                  subcontractors under the Original Agreement, including
                  negligent or intentional acts of omission or commission,
                  professional malpractice and civil rights violations, stemming
                  or arising from provision of such correctional health care
                  services prior to the Assignment Date. Contractor shall make
                  its personnel available to assist in the defense of any action
                  arising from or involving Contractor's or its subcontractors'
                  activities during the term of the contract, including actions
                  filed after the Assignment Date, without additional cost to
                  the Department.

                  (c). Contractor shall fully observe and comply with the
                  contents of Section 3.20 of the RFP, concerning care of
                  state-owned personal property, and in particular, shall return
                  all such property to the Department in good condition as of
                  the Assignment Date, reasonable wear and tear or obsolescence
                  excepted, and shall reimburse the Department for such
                  property's loss or damage caused by Contractor. Further, the
                  Contractor shall fully observe and comply with the contents of
                  Paragraph 10 of the letter of February 3, 1999, by Gerard
                  Boyle addressed to Roger Werholtz, concerning capital outlay
                  items, and shall, as of the Assignment Date, make disposition
                  of any remaining balance of the capital outlay items fund
                  (pro-rata for the portion of the current contract term lapsing
                  prior to the Assignment Date) allocated for the current
                  contract term according to the terms of said Paragraph 10.

                  (d). Contractor shall fully observe and comply with the
                  contents of Section 3.22 of the RFP, concerning retention of
                  records involving transactions related to the instant
                  contract, and access thereto by authorized personnel.

                  (e). Contractor shall fully observe and comply with the
                  contents of Paragraph 16 of the letter of February 3, 1999, by
                  Gerard Boyle addressed to Roger Werholtz, concerning no
                  non-compete provisions for employment agreements impacting the
                  Kansas Department of Corrections.

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                  (f). Contractor shall fully observe and comply with the
                  contents of Amendment No. 6 to the Agreement, dated May 10,
                  2001, authorizing subcontracting of pharmaceutical services,
                  at Paragraph 5, Subparagraphs C and I.

         4.       Contractor will pay, within two weeks of the Assignment Date,
                  all employees' accrued vacation time as accrued through the
                  date of the Assignment Date and give the Department proof of
                  same prior to Department's payment for service for September.
                  Contractor will provide the Department an officer's affidavit,
                  accompanied by a list of claims paid for the last three
                  months, that all vendors have been notified to make their
                  final claims by the Assignment Date and that all claims
                  received and processed by Contractor as of October 10, 2003,
                  have been paid with no backlog of Kansas vendors claims. Upon
                  receipt of such documentation the Department will pay
                  Contractor 80% of the Department's September payment (no later
                  than October 20). Department will retain 20% of Contractor's
                  normal monthly payment no later than November 20, 2003 (the
                  "Retainage"). On November 15, 2003, the Contractor shall
                  provide Department a list of claims received, processed and
                  paid since October 10, 2003. Department shall pay such
                  Retainage promptly upon provision of the list by Contractor.
                  Contractor will continue to pay properly submitted claims as
                  received post Assignment Date in the normal course of
                  business.

         5.       It is essential for proper payment that the Contractor
                  continue to have access to the Department's records. The
                  Department or its subcontractor will continue to provide
                  Contractor assistance as needed to determine the appropriate
                  payment status or back up documentation for all claims for off
                  site services provided prior to the Assignment Date.

          IN WITNESS WHEREOF, the parties have caused this Amendment No 9 to be
signed by their duly authorized representatives on the day and year indicated
above.

     DEPARTMENT OF CORRECTIONS                    CONTRACTOR:
     STATE OF KANSAS                              Prison Health Services, Inc.

     By:  /s/ ROGER WERHOLTZ                      By:  /s/ MICHAEL CATALANO
          --------------------------                   -----------------------
          Roger Werholtz                               Michael Catalano
          Secretary of Corrections                     Chairman of the Board

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     DEPARTMENT OF ADMINISTRATION
     DIVISION OF PURCHASES
     STATE OF KANSAS

     By:   /s/ STUART LEIGHTY
           --------------------------
           Stuart Leighty
           Director of Purchases

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