Document:

<PAGE>
        EXHIBIT 10.9 - FORM OF EXECUTIVE OFFICER SPLIT DOLLAR AGREEMENT

                              TIB BANK OF THE KEYS
                             SPLIT DOLLAR AGREEMENT

         THIS AGREEMENT is made and entered into this _______ day of
_________________, 2001, by and between TIB BANK OF THE KEYS, a state-chartered
commercial bank located in Key Largo, Florida (the "Company"), and
_____________ (the "Executive"). This Agreement shall append the Split Dollar
Endorsement entered into on __________________, 2000, as amended, by and
between the aforementioned parties.

                                  INTRODUCTION

         To encourage the Executive to remain an employee of the Company, the
Company is willing to divide the death proceeds of a life insurance policy on
the Executive's life. The Company will pay life insurance premiums from its
general assets.

                                   ARTICLE 1
                              GENERAL DEFINITIONS

The following terms shall have the meanings specified:

         1.1      "Change of Control" means the acquisition by any person, or
persons acting as a group within the meaning of Section 13(d) of the Securities
Exchange Act of 1934, of fifty-one percent or more of the voting securities of
the Company, or its parent, TIB Financial Corp., a Florida corporation, or of
any lesser percentage of the voting securities of the Company if the Board of
Directors of the Company, the Comptroller of Florida, the FDIC, or the Federal
Reserve Bank makes a determination that such acquisition constitutes or will
constitute control of the Company. The term "person" as used herein includes
and individual, corporation, bank holding company or any other legal entity.

         1.2      "Insurer" means _________.

         1.3      "Policy" means insurance policy number __________ issued by
the Insurer.

         1.4      "Insured" means the Executive.

         1.5      "Normal Retirement Age" means the earlier of the Executive's
65th birthday or the date of a Change of Control.

         1.6      "Termination of Service" means the Executive's ceasing to be
employed by the Company for any reason whatsoever.

<PAGE>

                                   ARTICLE 2
                           POLICY OWNERSHIP/INTERESTS

         2.1      Company Ownership. The Company is the sole owner of the
Policy and shall have the right to exercise all incidents of ownership. The
Company shall be the direct beneficiary of an amount of death proceeds equal to
the greater of: a) the cash surrender value of the policy, b) the aggregate
premiums paid on the Policy by the Company less any outstanding indebtedness to
the Insurer or c) the total death proceeds less the Split Dollar Amount. The
Split Dollar Amount shall be the amount equal to 60% of the difference between
the total death proceeds and the cash surrender value at the time of the
Executive's death.

         2.2      Executive's Interest. The Executive shall have the right to
designate the beneficiary of any remaining death proceeds of the Policy. The
Executive shall also have the right to elect and change settlement options that
may be permitted. Provided, however, the Executive, the Executive's transferee
or the Executive's beneficiary shall have no rights or interests in the Policy
with respect to that portion of the death proceeds designated in this section
2.2 upon the Executive's Termination of Service prior to Normal Retirement Age.

         2.3      Option to Purchase. The Company shall not sell, surrender or
transfer ownership of the Policy while this Agreement is in effect without
first giving the Executive or the Executive's transferee the option to purchase
the Policy for a period of sixty (60) days from written notice of such
intention. The purchase price shall be an amount equal to the cash surrender
value of the Policy. This provision shall not impair the right of the Company
to terminate this Agreement.

         2.4      Comparable Coverage. Upon the Executive's attaining Normal
Retirement Age while still in service as an employee of the Company, the
Company shall maintain the Policy in full force and effect and in no event
shall the Company amend, terminate or otherwise abrogate the Executive's
interest in the Policy, unless the Company replaces the Policy with a
comparable insurance policy to cover the benefit provided under this Agreement.
The Policy or any comparable policy shall be subject to the claims of the
Company's creditors.

                                   ARTICLE 3
                                    PREMIUMS

         3.1      Premium Payment. The Company shall pay any premiums due on
the Policy.

         3.2      Imputed Income. The Company shall impute income to the
Executive in an amount equal to the current term rate for the Executive's age
multiplied by the aggregate death benefit payable to the Executive's
beneficiary. The "current term rate" is the minimum amount required to be
imputed under Revenue Rulings 64-328 and 66-110, or any subsequent applicable
authority.

                                   ARTICLE 4
                                   ASSIGNMENT

         The Executive may assign without consideration all interests in the
Policy and in this Agreement to any person, entity or trust. In the event the
Executive transfers all of the Executive's interest in the Policy, then all of
the Executive's interest in the Policy and in the Agreement shall be vested in
the Executive's transferee, who shall be substituted as a party hereunder and
the Executive shall have no further interest in the Policy or in this
Agreement.

<PAGE>

                                   ARTICLE 5
                                    INSURER

         The Insurer shall be bound only by the terms of the Policy. Any
payments the Insurer makes or actions it takes in accordance with the Policy
shall fully discharge it from all claims, suits and demands of all entities or
persons. The Insurer shall not be bound by or be deemed to have notice of the
provisions of this Agreement.

                                   ARTICLE 6
                                CLAIMS PROCEDURE

         6.1      Claims Procedure. The Company shall notify the Executive, the
Executive's transferee or beneficiary, or any other party who claims a right to
an interest under this Agreement (the "Claimant') in writing, within 90 days of
Claimant's written application for benefits, of his or her eligibility or
ineligibility for benefits under this Agreement. If the Company determines that
the Claimant is not eligible for benefits or full benefits, the notice shall
set forth (1) the specific reasons for such denial, (2) a specific reference to
the provisions of this Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the
Claimant to perfect his or her claim, and a description of why it is needed,
and (4) an explanation of this Agreement's claims review procedure and other
appropriate information as to the steps to be taken if the Claimant wishes to
have the claim reviewed. If the Company determines that there are special
circumstances requiring additional time to make a decision, the Company shall
notify the Claimant of the special circumstances and the date by which a
decision is expected to be made, and may extend the time for up to an
additional 90 days.

         6.2      Review Procedure. If the Claimant is determined by the
Company not to be eligible for benefits, or if the Claimant believes that he or
she is entitled to greater or different benefits, the Claimant shall have the
opportunity to have such claim reviewed by the Company by filing a petition for
review with the Company within 60 days after receipt of the notice issued by
the Company. Said petition shall state the specific reasons which the Claimant
believes entitle him or her to benefits or to greater or different benefits.
Within 60 days after receipt by the Company of the petition, the Company shall
afford the Claimant (and counsel, if any) an opportunity to present his or her
position to the Company verbally or in writing, and the Claimant (or counsel)
shall have the right to review the pertinent documents. The Company shall
notify the Claimant of its decision in writing within the sixty-day period,
stating specifically the basis of its decision, written in a manner to be
understood by the Claimant and the specific provisions of this Agreement on
which the decision is based. If, because of the need for a hearing, the 60-day
period is not sufficient, the decision may be deferred for up to another 60-day
period at the election of the Company, but notice of this deferral shall be
given to the Claimant.

                                   ARTICLE 7
                           AMENDMENTS AND TERMINATION

         This Agreement may be amended or terminated only by a written
agreement signed by the Company and the Executive. However, unless otherwise
agreed to by the Company and the Executive, this Agreement will automatically
terminate upon the Executive's Termination of Service

<PAGE>

prior to Normal Retirement Age.

                                   ARTICLE 8
                                 MISCELLANEOUS

         8.1      Binding Effect. This Agreement shall bind the Executive and
the Company, their beneficiaries, survivors, executors, administrators and
transferees, and any Policy beneficiary.

         8.2      No Guarantee of Employment. This Agreement is not an
employment policy or contract. It does not give the Executive the right to
remain a Executive or employee of the Company, nor does it interfere with the
Company's right to discharge the Executive. It also does not require the
Executive to remain an Executive nor interfere with the Executive's right to
terminate employment at any time.

         8.3      Applicable Law. The Agreement and all rights hereunder shall
be governed by and construed according to the laws of the State of Florida,
except to the extent preempted by the laws of the United States of America.

         8.4      Reorganization. The Company shall not merge or consolidate
into or with another company, or reorganize, or sell substantially all of its
assets to another company, firm or person unless such succeeding or continuing
company, firm or person agrees to assume and discharge the obligations of the
Company.

         8.5      Notice. Any notice, consent or demand required or permitted
to be given under the provisions of this Split Dollar Agreement by one party to
another shall be in writing, shall be signed by the party giving or making the
same, and may be given either by delivering the same to such other party
personally, or by mailing the same, by United States certified mail, postage
prepaid, to such party, addressed to his or her last known address as shown on
the records of the Company. The date of such mailing shall be deemed the date
of such mailed notice, consent or demand.

         8.6      Entire Agreement. This Agreement constitutes the entire
agreement between the Company and the Executive as to the subject matter
hereof. No rights are granted to the Executive by virtue of this Agreement
other than those specifically set forth herein.

         8.7      Administration. The Company shall have powers which are
necessary to administer this Agreement, including but not limited to:

                  (a)      Interpreting the provisions of the Agreement;

                  (b)      Establishing and revising the method of accounting
         for the Agreement;

                  (c)      Maintaining a record of benefit payments; and

                  (d)      Establishing rules and prescribing any forms
         necessary or desirable to administer the Agreement.

<PAGE>

         8.8      Named Fiduciary. The Company shall be the named fiduciary and
plan administrator under the Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the
plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals

         IN WITNESS WHEREOF, the parties have executed this Agreement the day
and year first above written.

EXECUTIVE:                          COMPANY:

                                    TIB BANK OF THE KEYS

                                    BY
------------------------------        -----------------------------------------
                                    TITLE
                                         --------------------------------------

<PAGE>

                        SPLIT DOLLAR POLICY ENDORSEMENT
                  TIB BANK OF THE KEYS SPLIT DOLLAR AGREEMENT

Policy No.                                           Insured:
          ---------------                                    ------------------

Supplementing and amending the application for insurance to _____________
("Insurer") on ___________________________, 2000, the applicant requests and
directs that:

                                 BENEFICIARIES

         1.       TIB BANK OF THE KEYS, a state-chartered commercial bank
located in Key Largo, Florida (the "Company"), shall be the direct beneficiary
of death proceeds equal to the greater of (a) the cash surrender value of the
policy, (b) the aggregate premiums paid on the Policy by the Company less any
outstanding indebtedness to the Insurer or (c) the total death proceeds less
the Split Dollar Amount. The Split Dollar Amount shall be an amount equal to
60% of the difference between the total death proceeds and the cash surrender
value at the time of the Insured's death.

         2.       The beneficiary of any remaining death proceeds shall be
designated by the Insured or the Insured's transferee, subject to the
provisions of Paragraph Five below.

                                   OWNERSHIP

         3.       The Owner of the policy shall be the Company. The Owner shall
have all ownership rights in the Policy except as may be specifically granted
to the Insured or the Insured's transferee in Paragraph Four of this
endorsement.

         4.       The Insured or the Insured's transferee shall have the right
to assign his or her rights and interests in the Policy with respect to that
portion of the death proceeds designated in Paragraph Two of this endorsement,
and to exercise all settlement options with respect to such death proceeds.

         5.       Notwithstanding the provisions of Paragraph Four above, the
Insured or the Insured's transferee shall have no rights or interests in the
Policy with respect to that portion of the death proceeds designated in
Paragraph Two of this endorsement if the Insured ceases to serve as an employee
of the Company prior to the Normal Retirement Age for any reason whatsoever
(other than by reason of a leave of absence which is approved by the Company),
unless otherwise agreed to by the Company and the Insured. Normal Retirement
Age is the earlier of Insured's 65th birthday or the date of a Change of
Control.

              MODIFICATION OF ASSIGNMENT PROVISIONS OF THE POLICY

Upon the death of the Insured, the interest of any collateral assignee of the
Owner of the Policy designated in Paragraph Three above shall be limited to the
portion of the proceeds described in Paragraph One above.

<PAGE>

                                OWNERS AUTHORITY

The Insurer is hereby authorized to recognize the Owner's claim to rights
hereunder without investigating the reason for any action taken by the Owner,
including its statement of the amount of premiums it has paid on the Policy.
The signature of the Owner shall be sufficient for the exercise of any rights
under this Endorsement and the receipt of the Owner for any sums received by it
shall be a full discharge and release therefore to the Insurer.

Any transferee's rights shall be subject to this Endorsement.

The owner accepts and agrees to this Split Dollar Endorsement.

Signed at ___________________, Florida, this _____ day of ______________, 2001.

TIB BANK OF THE KEYS

By
  -----------------------------------
Its
   ----------------------------------

The Insured accepts and agrees to the foregoing and, subject to the rights of
the Owner as stated above, designates the following beneficiaries of the
portion of the proceeds described in (2) above:

         Primary beneficiary
                            ---------------------------------------------------

                  Relationship to Insured
                                         --------------------------------------

         Secondary beneficiary
                              -------------------------------------------------

                  Relationship to Insured
                                         --------------------------------------

Signed at ____________________, Florida, this ______ day of ____________, 2001.

THE INSURED:

----------------------------------<PAGE>
                                                                   EXHIBIT 10.26

                           WAIVER AND THIRD AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT

                  This WAIVER AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this "Amendment"or "Third Amendment") dated as of March 15, 2002
("Effective Date") by and among AMERICA SERVICE GROUP INC., a Delaware
corporation (the "Borrower"), the subsidiaries of the Borrower who are parties
to the Credit Agreement (the "Guarantors"), and BANK OF AMERICA, N.A., a
national banking association as administrative agent and issuing bank
("Administrative Agent") for itself, AMSOUTH BANK, HARRIS TRUST AND SAVINGS
BANK, and COMERICA BANK (collectively the "Lenders") (as defined in the Credit
Agreement described below).

                               W I T N E S S E T H:
                               - - - - - - - - - -

                  WHEREAS, the Borrower, the Lenders, and the Administrative
Agent are parties to that certain Amended and Restated Credit Agreement dated as
of August 1, 2000, as amended by that Amendment No. 1 dated August 28, 2001 and
as further amended by that Waiver and Second Amendment to Amended and Restated
Agreement dated November 13, 2001, (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"; capitalized terms used
herein without definition shall have the meaning ascribed to such terms in the
Credit Agreement);

                  WHEREAS, the Borrower is in default under the terms of the
Credit Agreement; and

                  WHEREAS, pursuant to certain terms and conditions contained
herein, the Administrative Agent, on behalf of the Lenders, is willing to waive
those defaults; and

                  WHEREAS, the parties seek to amend the Credit Agreement as
follows;

                  NOW THEREFORE, for and in consideration of the mutual
covenants contained herein and other valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

                  SECTION 1. Waiver. The Borrower acknowledges that it failed to
comply with (i) the Fixed Charge Coverage Ratio, (ii) the Leverage Ratio, and
(iii) EBITDA covenant for the Fiscal Quarter ending December 31, 2001 ("Fourth
Fiscal Quarter"), all of which are required by Article 10.1 of the Credit
Agreement; and further that it failed to make the principal reductions as
required by Section 2.1.3(b) on March 1, 2002 in contemplation of the
effectiveness of this Amendment. (The foregoing defaults are referred to as the
"Specified Defaults".) As requested by the Borrower, the Lenders hereby waive
any Default or Event of Default caused by such failure of the Borrower to comply
with Sections 10.1.2, 10.1.3 and 10.1.5 for the Fourth Fiscal Quarter and for
the failure to make the reduction as required under 2.1.3(b). The waivers
provided herein shall extend to and cover only the matters expressly described
herein and shall be effective and limited to the time period specifically
provided herein. This waiver shall not act as or constitute waivers of or
consents to any other Defaults or Events of

<PAGE>

Default or to any other transaction, act or omission, whether related or
unrelated to the foregoing. Further, said waivers shall not extend to or affect
any obligation, covenant, agreement, Default or Event of Default not expressly
waived hereby.

                  SECTION 2. Amendments to Credit Agreement. Effective as of the
date of this Agreement, the Credit Agreement is hereby amended as follows:

         (a)      Definitions. Section 1.1 of the Credit Agreement is hereby
amended to insert the following new definitions in the appropriate locations
according to alphabetical order, or to amend and restate existing definitions to
read as indicated, as applicable:

                  "Applicable Intangibles Advances Rate Margin" shall mean the
          margin to be added to the Base Rate for purposes of determining the
          interest rate applicable to the Intangible Advances from time to time
          which shall be determined as provided in Section 2.13.

                  "Borrowing Base" shall mean 85% of Eligible Trade Accounts
          Receivable plus 60% of Eligible Other Accounts Receivable.

                  "EBITDA" shall mean, for the Borrower and its Subsidiaries on
          a consolidated basis for any period, the sum of Consolidated Net
          Income, plus Interest Expense, plus any provision for taxes based on
          income or profits that was deducted in computing Consolidated Net
          Income, plus depreciation, amortization of intangible assets and other
          non-recurring non-cash charges, which non-cash charges may not exceed
          $500,000 in any month or any Fiscal Quarter and $2,000,000 in any
          Fiscal Year minus losses charged against Borrower's (or its
          Subsidiaries') loss contract reserves.

                  "Eligible Accounts" shall mean all accounts of the Borrower
         and the Guarantors arising from the provision of goods and services in
         the ordinary course of business on ordinary terms net of credits or
         allowances given to the account debtor and not subject to counterclaim,
         defense or offset in which the Administrative Agent, for the benefit of
         itself, the Lenders and the issuing bank, has been granted a
         first-in-priority perfected security interest, excluding all items that
         the Administrative Agent reasonably determines to be ineligible,
         including any invoices which remain unpaid for longer than 90 days,
         accounts arising from debt owed between Borrower and Guarantors, income
         tax receivables and accounts subject to other liens. Eligibility may be
         further adjusted by the Administrative Agent as it reasonably
         determines to be appropriate. Without limiting the foregoing, upon two
         weeks notice from the Administrative Agent, with the concurrence of
         Requisite Lenders, the Administrative Agent may impose such additional
         eligibility limitations as it deems appropriate, in the exercise of its
         discretion.

                  "Eligible Other Accounts Receivable" shall mean all those
          Eligible Accounts arising from the rights to payment owed to Borrower
          and Guarantors arising from overpayments by the Borrower and the
          Guarantors, unbilled accounts receivable, and reimbursable costs in
          excess of contractual limits.

                                       2
<PAGE>

                  "Eligible Trade Accounts Receivable" shall mean those Eligible
         Accounts excluding Eligible Other Accounts Receivable.

                  "Facilities Credit Base" shall mean, as of the last day of
         each month occurring during the Commitment Period, an aggregate amount
         equal to the sum of the Borrowing Base plus Intangibles Availability.
         Notwithstanding, the foregoing, the Agent, with the concurrence of the
         Requisite Lenders, reserves the right to require a determination of the
         Facilities Credit Base on a more frequent basis.

                  "Intangible Advances" shall mean the Revolving Loans or
          Swingline Loans described in Section 2.2.7.

                  "Intangibles Availability" shall mean the lesser of (i) the
         amount of Intangible Advances available to Borrower from time to time
         as those amounts are specified in the chart in Section 2.1.3; or (ii)
         the excess of the Commitments over an amount equal to the Borrowing
         Base.

                   "Interest Payment Date" shall mean, with respect to any Loan,
          the first day of each month beginning April 1, 2002, or such other
          date as Borrower and Lenders may agree in writing.

                  "Material Litigation" shall mean any legal action or
         proceeding brought against the Borrower or any Guarantors in which a
         party is seeking a recovery of $300,000 or more against the Borrower or
         any Guarantor, and which recovery, if granted, would not be covered by
         insurance.

                  "Net Proceeds" shall mean:

                           (a) with respect to any Asset Disposition, the
         aggregate of all amounts paid to the Borrower or a Guarantor in cash,
         as and when received, including (i) deferred payments pursuant to a
         promissory note, an account receivable or otherwise (other than
         interest payable in respect thereof), and (ii) with respect to Asset
         Disposition resulting from the loss, destruction or taking of or damage
         to property, the proceeds of insurance or condemnation claims and
         amounts paid or payable in settlement thereof, net of ordinary,
         necessary and reasonable sale expenses, fees and commissions incurred
         and taxes paid or expected to be paid within the thirty (30) days
         following such loss, destruction, taking or damage, and net of any
         amounts required to be paid in respect of any Indebtedness secured by a
         Lien on such property or asset, and

                           (b) with respect to the offering or sale of any
                  equity securities (or any securities convertible into equity
                  securities) or the incurrence of any Indebtedness, the gross
                  proceeds received in the transaction, less ordinary, necessary
                  and reasonable transaction expenses.

                                       3
<PAGE>

                  "Third Amendment" shall mean that Waiver and Third Amendment
          to the Amended and Restated Credit Agreement executed between
          Borrower, Guarantors and Lenders on March ____, 2002.

         (b)      Commitments. Section 2.1.1.(c)(ii) regarding the Letter of
Credit Commitment is amended to increase the Letter of Credit Commitment from
$5,000,000 to $6,600,000.

         (c)      Commitments Reductions. Section 2.1.3 of the Credit Agreement
is amended by restating Section 2.1.3:

                  2.1.3. Mandatory Reductions of Commitments.

                  (a) On the forty-fifth (45th) day following the end of each
         Fiscal Quarter ending on each of the dates specified below, the
         Commitments shall be permanently reduced by an amount equal to
         seventy-five percent (75%) of the amount by which EBITDA for such
         Fiscal Quarter exceeds the EBITDA amount specified below for such
         Fiscal Quarter.

<TABLE>
<CAPTION>
                      Fiscal Quarter                           EBITDA
                      --------------                           ------
<S>                                                          <C>
                      March 31, 2002                         $3,000,000

                      June 30, 2002                          $2,600,000

                      September 30, 2002                     $3,800,000

                      December 31, 2002                      $3,700,000
</TABLE>

                  (b) The Commitments shall also be permanently reduced on each
         date set forth below by the corresponding amount specified for such
         date.

<TABLE>
<CAPTION>
        -----------------------------------------------------------------------------------------------------------
                                       Commitments Reduction/                 Intangibles Advances
        Date                           Commitments Total                      Reduction/Intangibles Availability
        -----------------------------------------------------------------------------------------------------------
<S>                                    <C>                                    <C>
        Effective Date                 $1,000,000/$57,000,000                 $0/$11,000,000
        -----------------------------------------------------------------------------------------------------------
        July 1, 2002                   $0/$57,000,000                         $1,000,000/$10,000,000
        -----------------------------------------------------------------------------------------------------------
        September 1, 2002              $1,000,000/$56,000,000                 $0/$10,000,000
        -----------------------------------------------------------------------------------------------------------
        October 1, 2002                $1,000,000/$55,000,000                 $1,000,000/$9,000,000
        -----------------------------------------------------------------------------------------------------------
        November 1, 2002               $0/$55,000,000                         $0/$9,000,000
        -----------------------------------------------------------------------------------------------------------
        December 1, 2002               $1,000,000/$54,000,000                 $0/$9,000,000
        -----------------------------------------------------------------------------------------------------------
        February 1, 2003               $1,000,000/$53,000,000                 $0/$9,000,000
        -----------------------------------------------------------------------------------------------------------
        March 1, 2003                  $1,000,000/$52,000,000                 $0/$9,000,000
        -----------------------------------------------------------------------------------------------------------
        Maturity Date                  Remaining Commitments/$0               Remaining Intangibles Advances/$0
        -----------------------------------------------------------------------------------------------------------
</TABLE>

                                       4
<PAGE>

                      The reduction dates set forth above shall not be
         extended, nor shall the scheduled amount of any reduction set forth
         above be reduced without the written consent of the Administrative
         Agent and all of the Lenders. The scheduled reductions of the
         Commitments shall be made by the Borrower regardless of any other
         payments made pursuant to paragraphs (a), (c) or (d) of this section.

                  (c) The Borrower anticipates receiving a tax refund during the
         first Fiscal Quarter of 2002. The Borrower agrees to pay to Lenders
         100% of any tax refund proceeds over $3,600,000 upon receipt. Such
         payment shall be a permanent reduction to the Commitments and to the
         Intangibles Availability.

                  (d) To the extent that any Net Proceeds are received by the
         Borrower or Guarantors from an Asset Disposition out of the ordinary
         course of business, from the sale of stock or from the issuance of any
         debt other than debt incurred under the Credit Agreement , the Net
         Proceeds shall be paid promptly to Administration Agent for payment of
         the Loans and shall be applied as permanent reductions to the
         Commitments and the Intangibles Availability.

         (d)      Intangible Advances. Article 2 of the Credit Agreement is
amended to add a new Section 2.2.7:

                  2.2.7.  Intangible Advances.

                  (a) To the extent that Revolving Loans are made in amounts
          which exceed the Borrowing Base, that portion of the Revolving Loans
          shall be deemed to be Intangible Advances. The amount of the
          Intangible Advances may not exceed the Intangibles Availability for
          any application period.

                  (b) The Intangibles Advances shall be considered Revolving
          Loans for all purposes of the Agreement and the Loan Documents, and
          shall be subject to all terms, conditions and provisions of this
          Agreement and the Loan Documents applicable to Revolving Loans.

                  (c) Notwithstanding the provisions of paragraph (b) of this
          section, the Swing Line Lender may make Swing Line Loans in amounts
          not to exceed $6,000,000 for the purpose of funding Intangibles
          Advances. These Swing Line Loans shall be made in accordance with the
          provisions in Section 2.2.6, and the Swing Line Lender shall have all
          the rights and remedies provided therein.

                  (d) Intangibles Advances and Swing Line Loans, which fund
          Intangible Advances, shall bear interest at the Base Rate plus the
          Applicable Intangibles Advances Rate Margin.

         (e)      Fees.  Section 2.11 is amended as follows:

                                       5
<PAGE>

                  (a)      Section 2.11.1. is restated as follows:

                           2.11.1. Administrative Agent's Fees. The Borrower
          agrees to pay the Administrative Agent a fee in the amount of
          $12,000.00 at the end of each Fiscal Quarter during the Commitment
          Period beginning March 31, 2002.

                  (b)      A new Section 2.11.5 shall be added as follows:

                                    2.11.5. Waiver Fees. In consideration of the
          agreements of the Lenders set forth in the Third Amendment, the
          Borrower agrees to pay to Administrative Agent for the pro rata
          benefit of the Lenders (based on their respective Commitments) a fee
          upon execution of the Third Amendment of $100,000. In addition, on
          June 30, 2002, Borrower agrees to pay a fee to Lenders of one-quarter
          of one percent (.25%) of the Commitments existing at that date. On
          September 30, 2002, Borrower agrees to pay to Lenders a fee of
          three-quarters of one percent (.75%) of the Commitments existing on
          that date. On December 31, 2002, Borrower agrees to pay to Lenders a
          fee of one percent (1%) of the Commitments existing on that date. In
          the event (i) the Commitments are $45,000,000 or below on the fee
          payment dates of September 30, 2002, or December 31, 2002; (ii) the
          Intangible Advances are not utilized and have been cancelled by the
          respective payment date; and (iii) there is no Default which has
          occurred and is continuing on the payment date, the fees due and
          payable on September 30, 2002, and/or December 31, 2002, shall be
          reduced to one-quarter of one percent (.25%) of the Commitments
          existing on such date(s).

          (f)     Interest Rates. Section 2.13 of the Credit Agreement is hereby
amended to read as follows:

                  2.13. Interest and Fees Margins. For purposes of interest and
          fee computations hereunder involving the Applicable Base Rate Margin,
          the Applicable Letter of Credit Fee Percentage, the Applicable
          Commitment Fee Percentage, and the Applicable Intangible Advances Rate
          Margin shall be as follows:

<TABLE>
<S>                                                                    <C>
                  Applicable Base Rate Margin                          3.0%
                  Applicable Letter of Credit Fee Percentage           4.5%
                  Applicable Commitment Fee Percentage                 0.5%
                  Applicable Intangible Advances Rate Margin           5.0%
</TABLE>

          (g)     Reporting. Section 8.2 of the Credit Agreement is hereby
amended by deleting Section 8.2.10, and adding new Sections 8.2.10 through
8.2.16 as below relating to additional information and certificates which the
Borrower and the Guarantors shall furnish to Administrative Agent:

                  8.2.10. Thirteen Week Cash Flow. On a weekly basis, a cash
          flow report for a rolling thirteen (13) week period in the form
          attached on Schedule 8.2.10 or such form as

                                       6
<PAGE>

         may be reasonably requested by the Administrative Agent, including
         information indicating the variances of actual cash flow from
         projected cash flow.

                  8.2.11. Accounts Receivable Agings and Accounts Payable
         Agings. Not later than ten (10) Business Days following month end, a
         report of accounts receivable agings and account payable agings.

                  8.2.12. Certificate of Compliance. Within thirty (30) days of
         each month end, forty-five (45) days of the end of each Fiscal Quarter
         and ninety (90) days of the end of the Fiscal Year, a certificate from
         the Borrower in the form attached on Schedule 8.2.12 evidencing
         compliance with the financial covenants under the Credit Agreement and
         the status of the Facilities Credit Base.

                  8.2.13. Professional Liabilities Claims. As soon as available,
          and in any event not later than forty-five (45) days after the end of
          each Fiscal Quarter of the Borrower, the independent actuarial report
          and a copy of the then current loss run maintained by the Borrower's
          or the Guarantor's third party administrator on the professional
          liability claims made against the Borrower or the Guarantors and a
          report of professional liability claims paid by the Borrower or the
          Guarantors.

                  8.2.14. Pending Litigation and Material Contract Defaults.
          Within ten (10) Business Days of each month end, a report on the
          status of any pending Material Litigation and the occurrence and
          continuation of a default in any Material Contract.

                  8.2.15. Monthly Cash Flow. In addition to the information
          provided pursuant to Section 8.1.3, a cash flow report within thirty
          (30) days of each month end.

                  8.2.16. Additional Information. Promptly, such additional
          financial and other information as the Administrative Agent or any
          Lender from time to time may reasonably request.

          (h)     The Field Audits. Section 8.22 relating to field examinations
of the accounts of the Borrower and the Guarantors shall be amended by restating
Section 8.22 as follows:

                  8.22. Field Examinations and Report. Permit field examinations
          of the operations and the status of Collateral of the Borrower and the
          Guarantors to be made by the Administrative Agent or its designee on a
          quarterly basis, or more frequently in the discretion of the
          Administrative Agent, at the expense of the Borrower and the
          Guarantors, such that a report with respect to such operations and the
          status of Collateral (the "Field Examination Report") can be delivered
          to the Lenders.

          (i)     Warrants. Section 8 of the Credit Agreement is amended to add
a new section 8.25 entitled Warrants as follows:

                                       7
<PAGE>

                   8.25 Warrants.

                   (a) In the event that any Obligations or Guaranteed
          Obligations are outstanding on December 31, 2002, the Borrower shall
          deliver to each Lender, or such Lender's designee, a warrant in the
          form attached as Exhibit 8.25 entitling the holder of the warrant or
          its assignees to purchase, at a price of $.01 per share, the number of
          validly authorized and issued, fully paid and nonassessable shares
          ("Warrant Shares") of the Borrower's common stock ("Common Stock")
          which would cause such Lender to hold a proportionate share of five
          percent (5%) of the fully diluted Common Stock of the Borrower on the
          date of the issuance of the Warrant Shares (the "Exercise Date") equal
          to that Lender's proportionate share of the Commitments existing on
          the Exercise Date; provided, however, the aggregate number of shares
          issuable upon exercise of the warrant shall be reduced to 2.5% of the
          fully diluted Common Stock of the Borrower if: (i) on December 31,
          2002, the Commitments have been reduced to $45,000,000 or below; (ii)
          no Intangibles Advances are outstanding; and (iii) no Event of Default
          has occurred and is continuing.

          (b)     The Borrower agrees that, at all times from the date of the
Third Amendment:

                  (i) it shall reserve and keep available such number of
                  authorized but unissued shares of Common Stock, free from all
                  preemptive or similar rights therein, as will be sufficient
                  to permit the exercise of the warrants in full;

                  (ii) it shall not in any way modify the rights attached to
                  the shares of Common Stock as a class or attach any
                  restrictions thereto; and

                  (iii) it shall not increase the par value of the Common Stock.

          (j)     Indebtedness.

                  (a) Section 9.1(c) is amended by adding the following language
          at the end of the paragraph, "provided, however, that Indebtedness
          incurred for Capitalized Leases shall be included in Ordinary Capital
          Expenditures and be subject to the limitations in Section 10.1.4.

                  (b) Section 9.1(i) is amended by deleting the language "or (h)
          of Section 9.4" and inserting "and" between "(d)" and "(e)".

                  (b) Section 9.1(j) is hereby deleted.

          (k)     Permitted Liens. Section 9.2(l) is restated as follows:

                  Section 9.2(l). Other non-consensual Liens not securing
          Indebtedness , the amounts of which in the aggregate do not exceed
          $100,000; provided, however, that any Lien permitted by the clause (l)
          is permitted for only so long as is reasonably necessary

                                       8
<PAGE>

          for the Borrower or affected Subsidiary, using its best efforts to
          remove or eliminate such Liens.

          (l)     Sale or Transfer of Assets. Section 9.3(d) is amended by
restating the paragraph as follows:

                  (d) sale(s) of assets, not otherwise permitted by this Section
          9.3 in an aggregate amount not to exceed, in any Fiscal Year, an
          amount equal to five percent (5%) of the consolidated assets of the
          Borrower and its Subsidiaries, determined in conformity with GAAP, as
          of the end of the most recently completed Fiscal Year of the Borrower,
          provided that the sale is an arm's length transaction for fair value
          to an unaffiliated third party.

          (m)     Investments. Section 9.4, paragraph (h) regarding investments
in Permitted Non-Guarantor Entities, and paragraph (i) relating to Insurance
Subsidiaries are deleted.

          (n)     Restrictions on Investments in Permitted Non-Guarantor
Entities. Section 9.13 is amended by restating the section as follows:

                  9.13 Restrictions on Investments in Permitted Non-Guarantor
          Entities. Make new or additional investments in Permitted
          Non-Guarantor Entities.

          (o)     Net Worth Covenant. Section 10.1.1 of the Credit Agreement is
hereby amended to read as follows:

                  10.1.1. Minimum Net Worth. Permit Net Worth as of the end of
          any Fiscal Quarter ending on or after the period specified below to be
          less than the amounts indicated.

<TABLE>
<CAPTION>
                --------------------------------------------------------------
                PERIOD                                NET WORTH MINIMUM
<S>                                                   <C>
                --------------------------------------------------------------
                12/31/01-3/30/02                      ($4,000,000)
                --------------------------------------------------------------
                3/31/02-6/29/02                       ($3,250,000)
                --------------------------------------------------------------
                6/30/02-9/29/02                       ($2,500,000)
                --------------------------------------------------------------
                9/30/02-12/30/02                      ($1,000,000)
                --------------------------------------------------------------
                12/31/02-Maturity Date                $0
                --------------------------------------------------------------
</TABLE>

         (p)      Other Financial Covenants Deleted. Section 10.1.2. regarding
the Fixed Charge Ratio, Section 10.1.3. regarding the Leverage Ratio, and
Section 10.2 regarding Solvency are hereby deleted.

         (q)      Capital Expenditures. Section 10.1.4 of the Credit Agreement
is hereby amended to read as follows:

                                       9
<PAGE>

                           10.1.4. Capital Expenditures. Make Ordinary Capital
          Expenditures in an aggregate amount in excess of $375,000 in any
          Fiscal Quarter and no more than $1,500,000 for Fiscal Year 2002. An
          amount equal to the difference between expenditures actually made in a
          Fiscal Quarter and $375,000 may be carried forward to Subsequent
          Fiscal Quarters so long as the cumulative Ordinary Capital
          Expenditures do not exceed the limit of $1,500,000 for the Fiscal Year
          2002.

          (r)      EBITDA Covenant. Section 10.1.5 is hereby amended to read as
follows:

                  10.1.5. EBITDA. Permit cumulative EBITDA from January 1, 2002,
          through the end of for each month ending on each of the respective
          dates set forth below to be less than the EBITDA specified for the
          respective period ending on such date:

<TABLE>
<CAPTION>
                                                    Monthly Cumulative
                           Period Ending            Minimum EBITDA
                           -------------            --------------
<S>                                                 <C>
                           January 31, 2002         $350,000

                           February 28, 2002        $1,500,000

                           March 31, 2002           $1,800,000

                           April 30, 2002           $2,450,000

                           May 31, 2002             $2,775,000

                           June 30, 2002            $3,600,000

                           July 31, 2002            $4,275,000

                           August 31, 2002          $5,300,000

                           September 30, 2002       $6,800,000

                           October 31, 2002         $7,950,000

                           November 30, 2002        $9,200,000

                           December 31, 2002        $10,000,000
</TABLE>

                           Each month thereafter, the Borrower shall maintain a
         minimum monthly EBITDA of $500,000.

         (s)      Defaults.

                  (a)      Section 11.1.1 regarding failure to pay loans is
         amended by deleting the following language beginning in the first line:
         "within five days of the due date."

                                       10
<PAGE>

                  (b)      Section 11.1.3 regarding failures to perform
         covenants be amended by reducing the number of days from thirty (30)
         to twenty-one (21).

                  SECTION 3. Payment of Expenses. As a condition precedent to
the effectiveness of this waiver in Section 1 of this Amendment, the Borrower
agrees to pay all outstanding fees and expenses owed to the professionals of the
Administrative Agent and which have been invoiced to the Borrower prior to
execution of this Agreement. In addition, the Borrower shall pay interest
current through the date of this Amendment.

                  SECTION 4. Effectiveness. This Amendment shall be effective
only upon execution and delivery by the Borrower, the Guarantors, the
Administrative Agent, the Issuing Bank and Lenders.

                  SECTION 5. Representations and Warranties of the Borrower and
the Guarantors. As an inducement to the Administrative Agent, the Issuing Bank
and the Lenders to enter into this Amendment, the Borrower and the Guarantors
hereby represent and warrant to the Administrative Agent, the Issuing Bank and
the Lenders that, on and as of the date hereof:

         (a)      the representations and warranties contained in the Credit
Agreement and the other Loan Documents are true and correct, except for (i)
representations and warranties that expressly relate to an earlier date, which
remain true and correct as of said earlier date, and (ii) representations and
warranties that have become untrue or incorrect solely because of changes
permitted by the terms of the Credit Agreement and the other Loan Documents;

         (b)      no Default or Event of Default other than the Specified
Defaults has occurred and is continuing;

         (c)      the outstanding balances reflected on the attached Exhibit
5(c) due to Borrower under the Pledged Notes as defined in the Amended and
Restated Pledge and Security Agreement dated August 1, 2000 are the amounts owed
as of the date specified; and

         (d)      Harbour Insurance and Unisource, Inc., former Subsidiaries of
the Borrower, have no assets and are no longer in operation.

                  SECTION 6. Effect of Amendment; Continuing Effectiveness of
Credit Agreement and Loan Documents; Reaffirmation.

         (a)      Neither this Amendment nor any other indulgences that may have
been granted to the Borrower or any of the Guarantors by the Administrative
Agent, the Issuing Bank or any Lender shall constitute a course of dealing or
otherwise obligate the Administrative Agent, the Issuing Bank or any Lender to
modify, expand or extend the agreements contained herein, to agree to any other
amendments to the Credit Agreement or to grant any consent to, waiver of or
indulgence with respect to any other noncompliance with any provision of the
Loan Documents.

                                       11
<PAGE>

         (b)      This Amendment shall constitute a Loan Document for all
purposes of the Credit Agreement and the other Loan Documents. Any noncompliance
by the Borrower or any Guarantor with any of the covenants, terms, conditions or
provisions of this Agreement shall constitute an Event of Default. Except to the
extent amended hereby, the Credit Agreement, the other Loan Documents and all
terms, conditions and provisions thereof shall continue in full force and effect
in all respects.

         (c)      The Borrower and the Guarantors ratify and reaffirm the Loan
Documents and their respective Obligations and Guaranteed Obligations
thereunder.

                  SECTION 7. Release and Waiver. The Borrower and the Guarantors
hereby stipulate, acknowledge and agree that they have no claims or causes of
action of any kind whatsoever against the Lenders, the Administrative Agent or
the Issuing Bank. The Borrower and the Guarantors hereby release the Lenders,
the Administrative Agent and the Issuing Bank from any and all claims, causes of
action, demands and liabilities of any kind whatsoever, whether direct or
indirect, fixed or contingent, liquidated or unliquidated, disputed or
undisputed, known or unknown, that the Borrower or the Guarantors may now or
hereafter have relating in any way to any event, circumstance, action or failure
to act on or before the date of this Amendment. The release by the Borrower and
the Guarantors herein, together with the other terms and provisions of this
Amendment, are entered into by Borrower and Guarantors advisedly and without
compulsion, coercion or duress, the Borrower and Guarantors having determined
that this Amendment and all of its terms, conditions and provisions are in the
economic best interests of the Borrower and the Guarantors. The Borrower and the
Guarantors represent that they are entering into this Amendment freely and with
the advice of counsel as to their legal alternatives.

                  SECTION 8. Counterparts. This Amendment may be executed in
multiple counterparts or copies, each of which shall be deemed an original
hereof for all purposes. One or more counterparts or copies of this Agreement
may be executed by one or more of the parties hereto, and some different
counterparts or copies may be executed by one or more of the other parties. Each
counterpart or copy hereof executed by any party hereto shall be binding upon
the party executing same even though other parties may execute one or more
different counterparts or copies, and all counterparts or copies hereof so
executed shall constitute but one and the same agreement. Each party hereto, by
execution of one or more counterparts or copies hereof, expressly authorizes and
directs any other party hereto to detach the signature pages and any
corresponding acknowledgment, attestation, witness or similar pages relating
thereto from any such counterpart or copy hereof executed by the authorizing
party and affix same to one or more other identical counterparts or copies
hereof so that upon execution of multiple counterparts or copies hereof by all
parties hereto, there shall be one or more counterparts or copies hereof to
which is (are) attached signature pages containing signatures of all parties
hereto and any corresponding acknowledgment, attestation, witness or similar
pages relating thereto.

                  SECTION 9. Ratification of Prior Amendment by Secure Pharmacy
Plus, Inc. In addition to executing this Amendment for the purposes set forth
herein, Secure Pharmacy Plus, Inc. hereby consents to and assumes all of the
obligations of a party to the Second Amendment

                                       12
<PAGE>

and shall be fully liable thereunder to the Administrative Agent, the Issuing
Bank and the Lenders to the same extent and with the same effect as though
Secure Pharmacy Plus, Inc. had been one of the Guarantors originally executing
the Second Amendment.

                  SECTION 10.  Miscellaneous.

         (a)      This Amendment shall be governed by, construed and enforced in
accordance with the laws of the State of Tennessee, without reference to the
conflicts or choice of law principles thereof.

         (b)      The headings in this Amendment and the usage herein of defined
terms are for convenience of reference only and shall not be construed as
amplifying, limiting or otherwise affecting the substantive provisions hereof.

         (c)      Any reference herein to any instrument, document or agreement,
by whatever terminology used, shall be deemed to include any and all amendments,
modifications, supplements, extensions, renewals, substitutions and/or
replacements thereof as the context may require.

         (d)      When used herein, (i) the singular shall include the plural,
and vice versa, and the use of the masculine, feminine or neuter gender shall
include all other genders, as appropriate, (ii) "include", "includes" and
"including" shall be deemed to be followed by "without limitation" regardless of
whether such words or words of like import in fact follow same, and (iii) unless
the context clearly indicates otherwise, the disjunctive "or" shall include the
conjunctive "and".

                                       13
<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Waiver and
Third Amendment to the Amended and Restated Credit Agreement through their
authorized officers as of the date first written above.

                                         BORROWER:

                                         AMERICA SERVICE GROUP INC., a
                                         Delaware corporation

                                         By:________________________________
                                         Name:
                                         Title:

                                         GUARANTORS:

                                         PRISON HEALTH SERVICES, INC.,
                                         a Delaware corporation

                                         By:________________________________
                                         Name:
                                         Title:

                                         PRISON HEALTH SERVICES OF
                                         INDIANA, L.L.C., an Indiana limited
                                         liability company

                                         By:________________________________
                                                 Prison Health Services, Inc., a
                                                 Delaware corporation being the
                                                 duly authorized general manager
                                                 thereof

                                         EMSA GOVERNMENT SERVICES, INC.,
                                         a Florida corporation

                                         By:________________________________
                                         Name:
                                         Title:

                                       14
<PAGE>

                                         EMSA CORRECTIONAL CARE, INC.,
                                         a Florida corporation

                                         By:________________________________
                                         Name:
                                         Title:

                                         EMSA MILITARY SERVICES, INC.,
                                         a Florida corporation

                                         By:________________________________
                                         Name:
                                         Title:

                                         EMSA LIMITED PARTNERSHIP, a Florida
                                         limited partnership

                                         By:________________________________
                                                 EMSA Correctional Care, Inc.,
                                                 a Florida Corporation being the
                                                 duly authorized general partner
                                                 thereof

                                         CORRECTIONAL HEALTH SERVICES, INC.,
                                         a New Jersey corporation

                                         By:________________________________
                                         Name:
                                         Title:

                                         SECURE PHARMACY PLUS, INC., a
                                         Tennessee corporation

                                         By:_________________________________
                                         Name:
                                         Title:

                  [SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                       15
<PAGE>

                                         BANK OF AMERICA, N.A., as
                                         Administrative Agent

                                         By:________________________________
                                         Name:
                                         Title:

                                         BANK OF AMERICA, N.A., as a Lender

                                         By:________________________________
                                         Name:
                                         Title:

                                       16

<PAGE>

                  [SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                         HARRIS TRUST AND SAVINGS BANK,
                                         as a Lender and Co-Agent

                                         By:________________________________
                                         Name:
                                         Title:

                                       17

<PAGE>

                 [SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT
                   TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                         COMERICA BANK, as a Lender

                                         By:________________________________
                                         Name:
                                         Title:

                                       18

<PAGE>

                  [SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                         AMSOUTH BANK, as Lender and Co-Agent

                                         By:_________________________________
                                         Name:
                                         Title:

                                       19

<PAGE>

                  [SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                 SCHEDULE 8.2.10

                           THIRTEEN WEEK CASHFLOW FORM

                                       20
<PAGE>

                                 SCHEDULE 8.2.12

                      BORROWING BASE COMPLIANCE CERTIFICATE

                                       21
<PAGE>

                                  EXHIBIT 5(C)

                              PLEDGED NOTE BALANCES

<TABLE>
<CAPTION>
MAKER                                           AMOUNT OWED AS OF _______________, 2002
-----                                           ---------------------------------------
<S>                                             <C>
Prison Health Services, Inc.
Prison Health Services of Indiana, L.L.C.
EMSA Government Services, Inc.
EMSA Military Services, Inc.
EMSA Correctional Care, Inc.
EMSA Limited Partnership
Correctional Health Services, Inc.
Secure Pharmacy Plus, Inc.
</TABLE>

                                       22

<PAGE>

                                  EXHIBIT 8.25

                                 FORM OF WARRANT

                                       23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]