Exhibit 10.11

 

AMENDMENT NO. 2

(dated and effective September 9, 2005)

to

CREDIT AGREEMENT

(that was dated as of September 14, 2004)

by and among

LASALLE BANK NATIONAL ASSOCIATION,

as Administrative Agent and Co-Lead Arranger,

WACHOVIA CAPITAL MARKETS, LLC, as Co-Lead Arranger,

WACHOVIA BANK, NATIONAL ASSOCIATION, as Co-Syndication Agent,

NATIONAL CITY BANK OF THE MIDWEST, as Co-Syndication Agent,

the LENDERS, and

CENTENE CORPORATION,

as Company

 

In consideration of their mutual agreements herein and for other sufficient
consideration, the receipt of which is hereby acknowledged, CENTENE CORPORATION,
a Delaware corporation (Company), LASALLE BANK NATIONAL ASSOCIATION
(Administrative Agent), and the Lenders agree as follows:

 

1. Definitions; Section References. The term Original Loan Agreement means the
Credit Agreement dated as of September 14, 2004 among Company, Administrative
Agent, and the Lenders party thereto, as amended by that certain Amendment No. 1
thereto dated as of July 18, 2005. The term this Amendment means this Amendment
No. 2. The term Loan Agreement means the Original Loan Agreement as amended by
this Amendment. Capitalized terms used and not otherwise defined herein have the
meanings defined in the Loan Agreement. Section and Exhibit references are to
sections of, and exhibits to, respectively, the Original Loan Agreement unless
otherwise specified.

 

2. Conditions to Effectiveness of this Amendment. This Amendment is effective as
of September 9, 2005, but only if, on or before 2:00 p.m. Chicago time on
September 9, 2005, (i) this Amendment has been duly executed by Company,
Administrative Agent, and each Lender, and (ii) except as otherwise indicated on
Exhibit A to this Amendment, all of the documents listed on Exhibit A to this
Amendment have been delivered and, as applicable, executed, sealed, attested,
acknowledged, certified, or authenticated, each in form and substance
satisfactory to Administrative Agent, and all of the requirements described in
Exhibit A to this Amendment shall have been met.

 

3. Amendments to Original Loan Agreement. The Original Loan Agreement is hereby
amended as follows:

 

3.1. Agent Fee Letter. The definition of “Agent Fee Letter” in Section 1 is
deleted in its entirety and replaced with the following:

 

Agent Fee Letter means the fee letter dated as of August 9, 2005 between the
Company and the Administrative Agent.

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3.2. Applicable Margin. The definition of “Applicable Margin” in Section 1 is
amended by deleting the table therein in its entirety and replacing it with the
following:

 

Level

--------------------------------------------------------------------------------

 

Total Debt to EBITDA Ratio

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LIBOR

Margin

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Base Rate

Margin

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Non-Use

Fee Rate

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L/C Fee

Rate

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I

  Greater than or equal to 1.5:1    1.75 %   0.25 %   0.350 %   1.75 %

II

  Greater than or equal to 1.0:1 but less than 1.5:1    1.50 %   0.00 %   0.300
%   1.50 %

III

  Greater than or equal to 0.5:1 but less than 1.0:1    1.25 %   0.00 %   0.250
%   1.25 %

IV

  Less than 0.5:1    1.00 %   0.00 %   0.225 %   1.00 %

 

3.3. Collateral Documents. The definition of “Collateral Documents” in Section 1
is deleted in its entirety and replaced with the following:

 

Collateral Documents means, collectively, any agreement or instrument pursuant
to which the Company, any Subsidiary or any other Person grants or purports to
grant Collateral to the Administrative Agent for the benefit of the Lenders or
otherwise relates to such Collateral or guaranties the payment and/or
performance of the Obligations.

 

3.4. Guaranty. The definition of “Guaranty” in Section 1 is deleted in its
entirety.

 

  3.5. Loan Party. The definition of “Loan Party” in Section 1 is deleted in its
entirety and replaced with the following:

 

Loan Party means the Company and each of its Subsidiaries (direct or indirect,
whether now existing or hereafter created) separately, excluding any Dormant
Subsidiary so long as it qualifies as a Dormant Subsidiary hereunder, but
specifically including Centene Management Company LLC, a Wisconsin limited
liability company, Centene Company of Texas, L.P., a Texas limited partnership,
Managed Health Services Insurance Corp., a Wisconsin corporation, Superior
HealthPlan, Inc., a Texas corporation, Coordinated Care Corporation Indiana,
Inc., an Indiana corporation, Managed Health Services Illinois, Inc., an
Illinois corporation, MHS Consulting Corporation, a Wisconsin corporation,
Bankers Reserve Life Insurance Company of Wisconsin, a Wisconsin insurance
company, University Health Plans, Inc., a New Jersey corporation, CenCorp
Consulting Company, Inc., a Delaware corporation, Centene Finance Corporation, a
Delaware corporation, Buckeye Community Health Plan, Inc., an Ohio corporation,
Centene Holdings LLC, a Delaware limited liability company, CCTX Holdings, LLC,
a Delaware limited liability company, AirLogix, Inc., a Delaware corporation,
FirstGuard, Inc., a Delaware corporation, FirstGuard Health Plan, Inc., a
Missouri corporation, and Peach State Health Plan, Inc., a Georgia corporation.
The words “Loan Parties” refer to the Company and its now existing or hereafter
created Subsidiaries (whether direct or indirect), excluding any Dormant
Subsidiary so long as it qualifies as a Dormant Subsidiary hereunder, but
specifically including each of the Persons specifically mentioned

 

2

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in the prior sentence, collectively. The Company agrees that any Subsidiary
which is a Dormant Subsidiary will automatically become a Loan Party hereunder
without any further action if at any time such Subsidiary ceases to be a Dormant
Subsidiary.

 

3.6. Pledge Agreement. The definition of “Pledge Agreement” in Section 1 is
deleted in its entirety.

 

3.7. Required Lenders. The definition of “Required Lenders” in Section 1 is
deleted in its entirety and replaced with the following:

 

Required Lenders means, at any time, Lenders who have Pro Rata Shares which
equal or exceed 51% as determined pursuant to clause (b) of the definition of
“Pro Rata Share”.

 

3.8. Revolving Commitment. The definition of “Revolving Commitment” in Section 1
is amended by replacing the figure “$100,000,000.00” with the figure
“$200,000,000.00”.

 

3.9. Termination Date. The definition of “Termination Date” in Section 1 is
amended by replacing the date “September 14, 2009” with the date “September 9,
2010”.

 

3.10. Increase in Revolving Commitment. Section 2.1.2 is amended by replacing
the words “up to an aggregate amount not exceeding $75,000,000 (resulting in a
maximum Revolving Commitment of $175,000,000)” in the first sentence with the
words “up to an aggregate amount not exceeding $75,000,000 (resulting in a
maximum Revolving Commitment of $275,000,000)”.

 

3.11. L/C Commitment. Section 2.1.3 is amended by replacing the words “the
aggregate Stated Amount of all Letters of Credit shall not at any time exceed
$20,000,000” in clause (a) with the words “the aggregate Stated Amount of all
Letters of Credit shall not at any time exceed $50,000,000”.

 

3.12. Application of Certain Payments. Section 7.2 is amended by deleting the
words “all amounts collected or received by the Administrative Agent or any
Lender as proceeds from the sale of, or other realization upon, all or any part
of the Collateral shall be applied in the following order” and replacing them
with the words “all amounts collected or received by the Administrative Agent or
any Lender, including amounts collected or received as proceeds from the sale
of, or other realization upon, all or any part of the Collateral, shall be
applied in the following order”.

 

3.13. Financial Condition. Section 9.4 is amended by replacing the dates
“December 31, 2003” and “June 30, 2004” with the dates “December 31, 2004” and
“June 30, 2005”, respectively.

 

3.14. No Material Adverse Change. Section 9.5 is amended by replacing the date
“December 31, 2003” with the date “December 31, 2004”.

 

3.15. Equity Ownership. Section 9.8 is amended by deleting the words “other than
those in favor of the Administrative Agent”.

 

3

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3.16. Collateral Documents. Section 9.30 is deleted in its entirety and replaced
with the following:

 

9.30 Collateral Documents. Each Collateral Document (if any) is effective to
grant to Administrative Agent an enforceable Lien in the Collateral described
therein (if any). Upon appropriate filing (as to all Collateral (if any) in
which a Lien may be perfected under the UCC by filing) or Administrative Agent’s
taking possession or control (as to all Collateral (if any) in which a Lien may
be perfected under the UCC by possession or control by the secured party),
Administrative Agent will have (for the benefit of the Lenders) a fully
perfected first priority Lien in the Collateral described in each Collateral
Document, if any.

 

3.17. Negative Pledges. Section 9.31 is amended by inserting the words “(if
any)” at the end thereof.

 

3.18. Insurance. Section 10.3(c) is amended by inserting the following preamble
at the beginning thereof: “The following paragraph applies in the event that any
Loan Party grants Administrative Agent or any Lender a Lien on any Collateral at
any time:”

 

3.19. Further Assurances. Section 10.11 is deleted in its entirety and replaced
with the following:

 

10.11 Further Assurances. Take, and cause each other Loan Party to take, such
actions as are necessary or as the Administrative Agent or the Required Lenders
may reasonably request from time to time to carry out the terms and conditions
of this Agreement and the other Loan Documents.

 

3.20. Debt. Section 11.1 is amended by deleting clauses (c), (d), and (g) in
their entirety and replacing them with the following, respectively:

 

(c) Debt of Loan Parties other than the Company (and which is non-recourse to
the Company) secured by Liens on real property permitted by Section 11.2(d), and
extensions, renewals and refinancings thereof; provided that the aggregate
amount of all such Debt at any time outstanding shall not exceed $30,000,000;

 

(d) (i) Debt which is unsecured provided that (x) the incurrence of such Debt
would not cause, either immediately or in the foreseeable future, a violation of
the covenant contained in Section 11.14.2 and (y) the documents governing such
Debt do not contain covenants (including quantitative covenants and financial
covenants) which are more restrictive than the covenants contained in this
Agreement or which the Loan Parties could violate without violating the
covenants contained in this Agreement, and (ii) Subordinated Debt which is
unsecured;

 

(g) Debt under Capital Leases for capital assets whose aggregate cost if
purchased would not exceed $30,000,000;

 

3.21. Acquisitions. Section 11.5 is amended by deleting clause (G) in its
entirety and replacing it with the following: “(G) reserved.” and by deleting
the last sentence of Section 11.5 which begins with the words “The condition
contained in clause (G)” in its entirety.

 

3.22. Fixed Charge Coverage Ratio. Section 11.14.1 is amended by replacing the
words “less than 1.50 to 1.00” with the words “less than 1.75 to 1.00”.

 

4

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3.23. Minimum Net Worth. Section 11.14.3 is deleted in its entirety and replaced
with the following:

 

11.14.3 Minimum Net Worth. Not permit the Net Worth of the Company and its
Subsidiaries to be less than $255,000,000 as of September 9, 2005, or as of the
end of each Fiscal Quarter to be less than an amount equal to the sum of
$255,000,000 plus the sum of (a) an amount equal to 50% of Consolidated Net
Income (without deduction for losses) on a cumulative basis from and after
July 1, 2005, (b) an amount equal to 50% of the net proceeds (defined as gross
proceeds less reasonable brokers’ and underwriters’ fees and commissions and
other reasonable expenses of the issuance) of the issuance by Company or any
other Loan Party of any Capital Securities on a cumulative basis from the
Closing Date through the date of measurement, and (c) an amount equal to 50% of
any increase in the Net Worth of the Company and its Subsidiaries associated
with an Acquisition permitted by Section 11.5 on a cumulative basis from the
Closing Date through the date of measurement.

 

3.24. Capital Structure; Equity Securities. Section 11.17 is deleted in its
entirety and replaced with the following:

 

11.17 Capital Structure; Equity Securities. Not, and not permit any other Loan
Party to, (i) make any change in its capital structure which has or could have a
Material Adverse Effect; or (ii) create any new class of stock, issue any stock,
or create or issue any other equity or non-equity securities except for stock or
other equity or non-equity securities which at the time of issuance would not,
and which at any time thereafter could not, obligate Company or any other Loan
Party to violate Section 11.4.

 

3.25. New Subsidiaries. Section 11.18 is amended by deleting the text of clauses
(i) and (iii) in their entirety and replacing it with “reserved”.

 

3.26. Pledge Agreement. Section 12.1.5 is amended by deleting the text thereof
in its entirety and replacing it with “Reserved.”

 

3.27. Guaranty. Section 12.1.6 is amended by deleting the text thereof in its
entirety and replacing it with “Reserved.”

 

3.28. Waiver; Amendments. Section 15.1 is amended by deleting the text of clause
(d) in its entirety and replacing it with the following: “release all or any
material Collateral granted under the Collateral Documents, change the
definition of Required Lenders, any provision of this Section 15.1, or reduce
the aggregate Pro Rata Share required to effect an amendment, modification,
waiver or consent, without, in each case, the written consent of all Lenders.”

 

3.29. Annex A. Annex A is deleted in its entirety and replaced with Annex A
attached hereto.

 

3.30. Annex B. Annex B is deleted in its entirety and replaced with Annex B
attached hereto.

 

3.31. Exhibit B. Exhibit B is deleted in its entirety and replaced with Exhibit
B attached hereto.

 

3.32. Schedules. Schedules 9.23 and 11.1 are amended as described in Exhibit C
attached hereto.

 

5

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4. Representations and Warranties. Company hereby represents and warrants to
Administrative Agent and each Lender that (i) this Amendment and each and every
other document and instrument delivered by Company in connection with this
Amendment (each, an Amendment Document and, collectively, the Amendment
Documents) has been duly authorized by its Board of Directors, (ii) no consents
are necessary from any third Person for its execution, delivery or performance
of the Amendment Documents to which it is a party which have not been obtained
and a copy thereof delivered to Administrative Agent, (iii) each of the
Amendment Documents to which it is a party constitutes its legal, valid and
binding obligation enforceable against it in accordance with its terms, except
to the extent that the enforceability thereof against it may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
similar laws affecting the enforceability of creditors’ rights generally or by
equitable principles of general application (whether considered in an action at
law or in equity), (iv) all of the representations and warranties contained in
the Loan Agreement, as amended hereby, are true and correct with the same force
and effect as if made on and as of the effective date of this Amendment, except
that with respect to the representations and warranties made regarding financial
data, such representations and warranties are hereby made with respect to the
most recent financial statements and other financial data (in the form required
by the Original Loan Agreement) delivered by it to Administrative Agent, and
(v) there exists no Unmatured Event of Default or Event of Default under the
Original Loan Agreement.

 

5. Effect of Amendment. The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of
Administrative Agent or the Lenders under the Original Loan Agreement or any of
the other Loan Documents, nor constitute a waiver of any provision of the
Original Loan Agreement or any of the other Loan Documents or any Unmatured
Event of Default or Event of Default, nor act as a release or subordination of
the Liens of Administrative Agent under the Loan Documents, except as expressly
provided herein. Each reference in the Original Loan Agreement to the Agreement,
hereunder, hereof, herein, or words of like import, shall be read as referring
to the Original Loan Agreement as amended hereby. Each reference in the other
Loan Documents to the Loan Agreement shall be read as referring to the Original
Loan Agreement, as amended hereby.

 

6. Release of Collateral and Guaranty. Upon the effectiveness of this Amendment,
Administrative Agent releases its Lien on all Capital Securities, dividends, and
proceeds thereof previously pledged to Administrative Agent by Company or any
other Loan Party and releases the Guaranty.

 

7. Reaffirmation. Company hereby acknowledges and confirms that (i) except as
expressly amended hereby, the Original Loan Agreement and other Loan Documents
remain in full force and effect, (ii) the Loan Agreement, as amended hereby, is
in full force and effect, (iii) it has no defenses to its obligations under the
Loan Agreement or any of the other Loan Documents to which it is a party,
(iv) the Liens of Administrative Agent under the Loan Documents continue in full
force and effect and have the same priority as before this Amendment except as
expressly provided herein, and (v) it has no claim against Administrative Agent
or any Lender arising from or in connection with the Loan Agreement or the other
Loan Documents.

 

8. Counterparts. This Amendment may be executed by the parties hereto on any
number of separate counterparts, each of which shall be deemed an original, but
all of which counterparts taken together shall constitute one and the same
instrument. It shall not be necessary in making proof of this Amendment to
produce or account for more than one counterpart signed by the party to be
charged.

 

9. Counterpart Facsimile Execution. This Amendment, or a signature page thereto
intended to be attached to a copy of this Amendment, signed and transmitted by
facsimile machine or telecopier shall be deemed and treated as an original
document. The signature of any Person thereon, for purposes hereof, is

 

6

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to be considered as an original signature, and the document transmitted is to be
considered to have the same binding effect as an original signature on an
original document. At the request of any party hereto, any facsimile or telecopy
document is to be re-executed in original form by the Persons who executed the
facsimile or telecopy document. No party hereto may raise the use of a facsimile
machine or telecopier or the fact that any signature was transmitted through the
use of a facsimile or telecopier machine as a defense to the enforcement of this
Amendment.

 

10. Governing Law. This Amendment and the rights and obligations of the parties
hereunder shall be governed by and construed and interpreted in accordance with
the internal laws of the State of Illinois applicable to contracts made and to
be performed wholly within such state, without regard to choice or conflict of
laws provisions.

 

11. Section Titles. The section titles in this Amendment are for convenience of
reference only and shall not be construed so as to modify any provisions of this
Amendment.

 

12. Incorporation By Reference. Administrative Agent, the Lenders, and Company
hereby agree that all of the terms of the Loan Documents are incorporated in and
made a part of this Amendment by this reference.

 

13. New Titles. Wachovia Capital Markets, LLC is hereby given the title of
“Co-Lead Arranger” under the Loan Agreement and the Loan Documents, Wachovia
Bank, National Association is hereby given the title of “Co-Syndication Agent”
under the Loan Agreement and the Loan Documents, and National City Bank of the
Midwest is hereby given the title of “Co-Syndication Agent” under the Loan
Agreement and the Loan Documents. Nothing contained in the foregoing sentence
shall give Wachovia Capital Markets, LLC, Wachovia Bank, National Association or
National City Bank of the Midwest any additional rights or obligations under the
Loan Agreement or the Loan Documents.

 

14. Statutory Notice - Oral Commitments. Nothing contained in such notice shall
be deemed to limit or modify the terms of the Loan Documents or this Amendment:

 

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM
ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
ARE NOT ENFORCEABLE. TO PROTECT YOU (COMPANY) AND US (CREDITOR) FROM
MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH
MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE
STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING
TO MODIFY IT.

 

COMPANY ACKNOWLEDGES THAT THERE ARE NO OTHER AGREEMENTS BETWEEN ADMINISTRATIVE
AGENT OR ANY LENDER AND COMPANY, ORAL OR WRITTEN, CONCERNING THE SUBJECT MATTER
OF THE LOAN DOCUMENTS, AND THAT ALL PRIOR AGREEMENTS CONCERNING THE SAME SUBJECT
MATTER, INCLUDING ANY PROPOSAL, TERM SHEET OR LETTER, ARE MERGED INTO THE LOAN
DOCUMENTS AND THEREBY EXTINGUISHED.

 

{remainder of page intentionally left blank}

 

7

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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by
appropriate duly authorized officers as of the date first above written.

 

Company:

 

CENTENE CORPORATION

By:

 

/s/ Karey L.Witty

--------------------------------------------------------------------------------

Name:

  Karey L.Witty

Title:

  Senior Vice President and CFO Administrative Agent: LASALLE BANK NATIONAL
ASSOCIATION

By:

 

/s/ Sam L. Dendrinas

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Name:

  Sam L. Dendrinas

Title:

  First Vice President

 

[Borrower and Administrative Agent signature page to Amendment No. 2]

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Lenders: LASALLE BANK NATIONAL ASSOCIATION

By:

 

/s/ Sam L. Dendrinas

--------------------------------------------------------------------------------

Name:

  Sam L. Dendrinas

Title:

  First Vice President WACHOVIA BANK, NATIONAL ASSOCIATION

By:

 

/s/ Jeanette A. Griffin

--------------------------------------------------------------------------------

Name:

  Jeanette A. Griffin

Title:

  Director NATIONAL CITY BANK OF THE MIDWEST

By:

 

/s/ William J. Tunis

--------------------------------------------------------------------------------

Name:

  William J. Tunis

Title:

  Vice President SUNTRUST BANK

By:

 

/s/ Greg <Illegible>

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Name:

  Greg <Illegible>

Title:

  Vice President REGIONS BANK

By:

 

/s/ Anne D. Silvestri

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Name:

  Anne D. Silvestri

Title:

  Vice President

 

[Lender signature page to Amendment No. 2]

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ANNEX A

 

LENDERS AND PRO RATA SHARES

 

Lender

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Revolving

Commitment Amount

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   Pro Rata Share

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LaSalle Bank National Association

   $ 65,000,000.00    32.50000 %

Wachovia Bank, National Association

   $ 50,000,000.00    25.00000 %

National City Bank of the Midwest

   $ 35,000,000.00    17.50000 %

SunTrust Bank

   $ 25,000,000.00    12.50000 %

Regions Bank

   $ 25,000,000.00    12.50000 %     

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TOTALS

   $ 200,000,000.00    100.00000 %     

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ANNEX B

 

ADDRESSES FOR NOTICES

 

CENTENE CORPORATION

 

7711 Carondelet Avenue, Suite 800

Clayton, Missouri 63105

Attention: Karey L. Witty, Chief Financial Officer

Telephone: 314-725-4477

Facsimile: 314-725-5180

 

LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent, Co-Lead Arranger,
Issuing Lender and a Lender

 

Notices of Borrowing, Conversion, Continuation and Letter of Credit Issuance

 

135 South LaSalle Street, Suite 1425

Chicago, Illinois 60603

Attention: Maria M. Coronada, Team Leader, Syndication Analyst

Telephone: (312) 904-7517

Facsimile: (312) 904-4448

 

All Other Notices

 

135 South LaSalle Street

Chicago, Illinois 60603

Attention: Ann O’Shaughnessy

Telephone: (312) 904-6769

Facsimile: (312) 904-4364

 

WACHOVIA BANK, NATIONAL ASSOCIATION, as Co-Syndication Agent and a Lender

(and WACHOVIA CAPITAL MARKETS, LLC, as Co-Lead Arranger)

 

301 South College Street

Charlotte, North Carolina 28288

Attention: James Hill

Telephone: (704) 383-6234

Facsimile: (704) 383-7992

 

With a copy to:

 

1 S. Broad Street, PA4152

Philadelphia, Pennsylvania 19107

Jeanette Griffin

Telephone: (267) 321-6615

Facsimile: (267) 321-6702

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NATIONAL CITY BANK OF THE MIDWEST, as Co-Syndication Agent and a Lender

 

10401 Clayton Road

St. Louis, Missouri 63131

Attention: William J. Tunis

Telephone: (314) 587-7869

Facsimile: (314) 991-4532

 

SUNTRUST BANK, as a Lender

 

201 4th Avenue, North

Nashville, Tennessee 37219

Attention: William Priester

Telephone: (615) 748-5969

Facsimile: (615) 748-5269

 

REGIONS BANK, as a Lender

 

8182 Maryland Avenue

St. Louis, Missouri 63105

Attention: Anne Silvestri

Telephone: (314) 615-2372

Facsimile: (314) 615-2355

 

ii

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Exhibit A

Documents and Requirements

 

  1. Revolving Notes:

 

  a. LaSalle Bank National Association ($65,000,000)

 

  b. Wachovia Bank, National Association ($50,000,000)

 

  c. National City Bank of the Midwest ($35,000,000)

 

  d. SunTrust Bank ($25,000,000)

 

  e. Regions Bank ($25,000,000)

 

  2. Closing Certificate

 

  3. Master Assignment and Acceptance Agreement

 

  4. Current insurance certificates for Company and each Loan Party evidencing
that Company and each Loan Party has in force insurance meeting the applicable
requirements of the Credit Agreement

 

  5. Secretary’s Certificate of Company (certifying resolutions, Certificate of
Incorporation, By-laws and Incumbency)

 

  6. Organizational chart, certified by Company as true, correct, and complete

 

  7. Good Standing Certificates for the following entities from the following
jurisdictions:

 

  a. Company (Delaware and Missouri)

 

  b. Centene Management Company LLC (Wisconsin)

 

  c. Centene Company of Texas, L.P. (Texas)

 

  d. Managed Health Services Insurance Corp. (Wisconsin)1

 

  e. Superior HealthPlan, Inc. (Texas)

 

  f. Coordinated Care Corporation Indiana, Inc. (Indiana)

 

  g. Managed Health Services Illinois, Inc. (Illinois)

 

  h. MHS Consulting Corporation (Wisconsin)

 

  i. Bankers Reserve Life Insurance Company of Wisconsin (Wisconsin)

 

  j. University Health Plans, Inc. (New Jersey)

 

  k. CenCorp Consulting Company, Inc. (Delaware)

 

  l. Centene Finance Corporation (Delaware)

 

  m. Buckeye Community Health Plan, Inc. (Ohio)

 

  n. Centene Holdings LLC (Delaware)

 

  o. CCTX Holdings, LLC (Delaware)

 

  p. AirLogix, Inc. (Delaware)

 

  q. FirstGuard, Inc. (Delaware)

 

  r. FirstGuard Health Plan, Inc. (Missouri)

 

  s. Peach State Health Plan, Inc. (Georgia)

 

  8. Legal Opinion of Company’s counsel

 

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1 Item is not a condition to the effectiveness of the Amendment. Company agrees
to deliver this item on or before September 19, 2005.

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  9. Such other documents, reports and information as Administrative Agent or
Administrative Agent’s counsel deems reasonable and necessary

 

  10. Agent Fee Letter

 

  11. Payment of Administrative Agent’s fees, costs and expenses (including
payment of Lewis, Rice & Fingersh invoice)

 

ii

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Exhibit B

Compliance Certificate

 

FORM OF COMPLIANCE CERTIFICATE

 

To:             LaSalle Bank National Association, as Administrative Agent

 

Please refer to the Credit Agreement dated as of September 14, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among Centene Corporation (the “Company”), various financial
institutions and LaSalle Bank National Association, as Administrative Agent.
Terms used but not otherwise defined herein are used herein as defined in the
Credit Agreement.

 

I.             Reports. A copy of the [annual audited/quarterly] report of the
Company as at                     ,             (the “Computation Date”), which
report fairly presents in all material respects the financial condition and
results of operations [(subject to the absence of footnotes and to normal
year-end adjustments)] of the Company as of the Computation Date and has been
prepared in accordance with GAAP consistently applied [is enclosed herewith]
[may be found at the Company’s website at www.centene.com].

 

II.             Financial Tests. The Company hereby certifies and warrants to
Administrative Agent, Issuing Lender and each Lender that the following is a
true and correct computation as at the Computation Date of the following ratios
and/or financial restrictions contained in the Credit Agreement and each of the
enclosed are true and correct as at the Computation Date:

 

A. Section 11.14.1 - Minimum Fixed Charge Coverage Ratio

 

1.

   EBITDA      a.   

Consolidated Net Income

   $                      b.   

cash Interest Expense

   $                      c.   

income tax expense

   $                      d.   

depreciation expense

   $                      e.   

amortization expense

   $                      f.   

pro forma EBITDA from Acquisitions (without duplication of above)

   $                      g.   

EBITDA (sum of a, b, c, d, e, and f)

   $                

2.

   income taxes paid    $                

3.

   unfinanced Capital Expenditures    $                

4.

   cash dividends paid    $                

5.

   sum of (2), (3), and (4)    $                

--------------------------------------------------------------------------------

       6.      remainder of (1)(g) minus (5)    $                         7.
     cash Interest Expense    $                         8.     

required payments of principal of Funded Debt

(excluding Revolving Loans)

   $                         9.      sum of (7) and (8)    $                   
     10.      ratio of (6) to (9)               to 1        11.      minimum
required      1.75 to 1 B.      Section 11.14.2 - Maximum Total Debt to EBITDA
Ratio               1.      Total Debt    $                         2.     
EBITDA (from (A)(1)(g) above)    $                         3.      ratio of (1)
to (2)               to 1        4.      maximum allowed      2.00 to 1 C     
Section 11.14.3 - Minimum Net Worth                      1.      Net Worth    $
                               2.      minimum required Net Worth              
              a.      base amount    $ 255,000,000                      b.     
50% of cumulative                                    Consolidated Net Income   
                                since 7/1/05    $                               
       c.      50% of net proceeds from                                   
issuance of Capital Securities    $                                       d.
     50% of net proceeds from                                    increases in
Net Worth                                    attributable to Acquisitions    $
                                      e.      minimum required                
                   Net Worth                                    (sum of a, b, c,
and d)    $                 

 

The Company further certifies to you that no Event of Default or Unmatured Event
of Default has occurred and is continuing.

 

ii

--------------------------------------------------------------------------------

The Company has caused this Certificate to be executed and delivered by its duly
authorized officer on                     ,             .

 

CENTENE CORPORATION By:  

 

--------------------------------------------------------------------------------

Title:  

 

--------------------------------------------------------------------------------

 

iii

--------------------------------------------------------------------------------

MASTER ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

This Master Assignment and Acceptance Agreement (this “Agreement”) is dated as
of September 9, 2005, and is by and among Centene Corporation (“Borrower”),
LaSalle Bank National Association, as Administrative Agent and a Lender
(“LaSalle”), National City Bank of the Midwest (“National City”), Wachovia Bank,
National Association (“Wachovia”), JP Morgan Chase Bank, N.A. (“JP Morgan”), Oak
Brook Bank (“Oak Brook”), SunTrust Bank (“SunTrust”), and Regions Bank
(“Regions”).

 

RECITALS:

 

A. LaSalle, National City, Wachovia, JP Morgan, and Oak Brook are collectively
referred to herein as the “Prior Lenders”. LaSalle, National City, Wachovia,
SunTrust, and Regions are collectively referred to herein as the “New Lenders.

 

B. Reference is made to the Credit Agreement dated as of September 14, 2004 by
and among Borrower, LaSalle, as Administrative Agent, and the Prior Lenders, as
amended by that certain Amendment No. 1 thereto dated as of July 18, 2005 (the
“Prior Loan Agreement”). The Commitments and Pro Rata Shares of the Prior
Lenders under the Prior Loan Agreement are listed on Exhibit A attached hereto.

 

C. Reference is made to that certain Amendment No. 2 to Credit Agreement of even
date herewith among Borrower, LaSalle, as Administrative Agent, and the New
Lenders (the “Amendment”). The Prior Loan Agreement, as amended by the
Amendment, is referred to herein as the “New Loan Agreement”.

 

D. Capitalized terms used herein but not defined herein shall have the meanings
set forth in the Prior Loan Agreement.

 

AGREEMENT:

 

1. This Agreement shall be effective on the date first written above upon the
execution of this Agreement by each of the parties listed on the signature pages
hereto and upon the occurrence of the fundings contemplated herein, which shall
be effective simultaneously with the effectiveness of the Amendment.

 

2. SunTrust and Regions each hereby join the New Loan Agreement as a Lender. In
connection with this Agreement, and simultaneously with its effectiveness,
(i) SunTrust and Regions will each become a Lender for all purposes under the
New Loan Agreement and the other Loan Documents, (ii) LaSalle, National City,
and Wachovia will each continue to be a Lender for all purposes under the New
Loan Agreement and the other Loan Documents, and (iii) JP Morgan and Oak Brook
will each cease to be a Lender under the New Loan Agreement and the other Loan
Documents.

 

3. Upon the full and complete execution of this Agreement, the Administrative
Agent shall arrange, and the Prior Lenders and New Lenders shall fully
cooperate, in making or receiving, as directed by the Administrative Agent
(pursuant to separate written instructions provided by Administrative Agent),
wire transfers and fund transfers as necessary for each of the New Lenders to
have the Commitments and Pro Rata Shares under the New Loan Agreement as
described in Exhibit B attached hereto and for JP Morgan and Oak Brook to have
their Pro Rata Shares of the Obligations paid in full as of the date hereof.

--------------------------------------------------------------------------------

4. Each New Lender agrees that, to the extent it has purchased and assumed or is
found to have purchased and assumed from any Prior Lender any interest in any
Loan, the Prior Loan Agreement and the Loan Documents, that it has purchased and
assumed such interest without recourse and without representation or warranty
except as expressly set forth in this Agreement, and any such assignment by any
Prior Lender to any New Lender shall be without recourse and without
representation or warranty except as expressly set forth in this Agreement.

 

5. After giving effect to the transactions described herein, the Lenders
(including, without limitation, each New Lender) and their respective
Commitments and Pro Rata Shares under (and as defined in) the New Loan Agreement
will be as listed on Exhibit B attached hereto.

 

6. The Prior Lenders represent and warrant to the New Lenders that, immediately
prior to the effectiveness of this Agreement, they are the legal and beneficial
owner of the Loans and the interests being assigned hereby, and that such Loans
and interest are free and clear of any adverse claim. The Prior Lenders and
Administrative Agent (i) make no representation or warranty and assume no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Loan Documents or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any other instrument or document furnished pursuant thereto; and
(ii) make no representation or warranty and assume no responsibility with
respect to the financial condition of Borrower, any Loan Party or any guarantor
of the Obligations, or the performance or observance by Borrower or any Loan
Party of any of its obligations under the Loan Documents or any other instrument
or document furnished pursuant thereto.

 

7. Each New Lender (i) confirms, covenants and agrees that it has received a
copy of the New Loan Agreement (including the Amendment) and the Loan Documents,
together with copies of the financial statements referred to therein and such
other documents and information, financial or otherwise, as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Agreement and the New Loan Agreement and become a Lender, and confirms and
covenants that it has entered into this Agreement and the New Loan Agreement
based on its own credit analysis and decision and without reliance upon any
information provided by, or statement made by, Administrative Agent or any other
Lender or Prior Lender; (ii) agrees that it will, independently and without
reliance upon the Administrative Agent, any Prior Lender or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the New Loan Agreement; (iii) appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under the New Loan Agreement as are delegated to the Administrative
Agent by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; (iv) agrees that it will perform in accordance
with their terms all of the obligations that by the terms of the New Loan
Agreement and the other Loan Documents are required to be performed by it as a
Lender; and (v) promptly provide to Administrative Agent any U.S. Internal
Revenue Service or other forms required under the New Loan Agreement.

 

8. This Agreement, and the rights and obligations of the parties hereunder shall
be governed by and construed and interpreted in accordance with the internal
Laws of the State of Illinois applicable to contracts made and to be performed
wholly within such state, without regard to choice or conflicts of law
principles. This Agreement may be executed in one or more counterparts and on
separate counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. Signatures to this
Agreement may be given by facsimile or other electronic transmission, and such
signatures shall be fully binding on the party sending the same.

 

{remainder of page intentionally left blank; signature pages immediately
follows}

 

2

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the each of the parties hereto have caused this Agreement to
be executed by their officers thereunto duly authorized as of the date specified
thereon.

 

CENTENE CORPORATION, a Delaware corporation, as Borrower

By:

 

/s/ Karey L. Wiity

--------------------------------------------------------------------------------

Name:

  Karey L. Witty

Title:

  Senior Vice President and CFO LASALLE BANK NATIONAL ASSOCIATION, as
Administrative Agent, Prior Lender, and New Lender

By:

 

/s/ Sam L. Dendrinas

--------------------------------------------------------------------------------

Name:

  Sam L. Dendrinas

Title:

  First Vice President NATIONAL CITY BANK OF THE MIDWEST, as Prior Lender and
New Lender

By:

 

/s/ William J. Tunis

--------------------------------------------------------------------------------

Name:

  William J. Tunis

Title:

  Vice President WACHOVIA BANK, NATIONAL ASSOCIATION, as Prior Lender and New
Lender

By:

 

/s/ Jeanette A. Griffin

--------------------------------------------------------------------------------

Name:

  Jeanette A. Griffin

Title:

  Director JP MORGAN CHASE BANK, N.A., as Prior Lender

By:

 

/s/ Thomas T. Hou

--------------------------------------------------------------------------------

Name:

  Thomas T. Hou

Title:

  Vice President OAK BROOK BANK, as Prior Lender

By:

 

/s/ George C. Clam

--------------------------------------------------------------------------------

Name:

  George C. Clam

Title:

  Vice Chairman SUNTRUST BANK, as New Lender

By:

 

/s/ Greg <Illegible>

--------------------------------------------------------------------------------

Name:

  Greg <Illegible>

Title:

  Vice President

 

3

--------------------------------------------------------------------------------

REGIONS BANK, as New Lender

By:

 

/s/ Anne D. Silvestri

--------------------------------------------------------------------------------

Name:

  Anne D. Silvestri

Title:

  Vice President

 

{end of signatures}

 

4

--------------------------------------------------------------------------------

EXHIBIT A

 

PRIOR LENDERS

 

Existing Lenders’ Commitments and Pro-Rata Shares

(prior to effectiveness of this Agreement)

 

LENDER

--------------------------------------------------------------------------------

  

REVOLVING
COMMITMENT

AMOUNT

--------------------------------------------------------------------------------

  

PRO-RATA

SHARES

--------------------------------------------------------------------------------

 

LaSalle Bank National Association

   $ 40,000,000.00    40.00000 %

National City Bank of the Midwest

   $ 25,000,000.00    25.00000 %

Wachovia Bank, National Association

   $ 15,000,000.00    15.00000 %

JP Morgan Chase Bank, N.A.

   $ 15,000,000.00    15.00000 %

Oak Brook Bank

   $ 5,000,000.00    5.00000 %     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

AGGREGATES

   $ 100,000,000.00    100.00000 %     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT B

 

Lenders’ Commitments and Pro-Rata Shares

(upon effectiveness of this Agreement)

 

LENDER

--------------------------------------------------------------------------------

  

REVOLVING
COMMITMENT

AMOUNT

--------------------------------------------------------------------------------

  

PRO-RATA

SHARES

--------------------------------------------------------------------------------

 

LaSalle Bank National Association

   $ 65,000,000.00    32.50000 %

Wachovia Bank, National Association

   $ 50,000,000.00    25.00000 %

National City Bank of the Midwest

   $ 35,000,000.00    17.50000 %

SunTrust Bank

   $ 25,000,000.00    12.50000 %

Regions Bank

   $ 25,000,000.00    12.50000 %     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

AGGREGATES

   $ 200,000,000.00    100.00000 %     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

AMENDED AND RESTATED NOTE

 

THIS DOES NOT CONSTITUTE A NOVATION

 

     September 9, 2005

$35,000,000.00

   Chicago, Illinois

 

The undersigned, for value received, promises to pay to the order of National
City Bank of the Midwest (the “Lender”) at the principal office of LaSalle Bank
National Association (the “Administrative Agent”) in Chicago, Illinois the
aggregate unpaid amount of all Loans made to the undersigned by the Lender
pursuant to the Credit Agreement referred to below (as shown in the records of
the Lender), such principal amount to be payable on the dates set forth in the
Credit Agreement.

 

The undersigned further promises to pay interest on the unpaid principal amount
of each Loan from the date of such Loan until such Loan is paid in full, payable
at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of
both principal and interest are to be made in lawful money of the United States
of America.

 

This Amended and Restated Note (this “Note”) evidences indebtedness incurred
under, and is subject to the terms and provisions of, the Credit Agreement,
dated as of September 14, 2004 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”; terms not otherwise defined
herein are used herein as defined in the Credit Agreement), among the
undersigned, certain financial institutions (including the Lender) and the
Administrative Agent, to which Credit Agreement reference is hereby made for a
statement of the terms and provisions under which this Note may or must be paid
prior to its due date or its due date accelerated.

 

This Note is made under and governed by the laws of the State of Illinois
applicable to contracts made and to be performed entirely within such State.

 

This Note is an amendment and restatement, but not a novation or refinancing, of
that certain Note executed by the undersigned and payable to the order of Lender
in the original principal amount of $25,000,000 dated September 14, 2004. This
Note does not evidence or effect a release or relinquishment of the priority of
the Liens of Lender or Administrative Agent in any of the Collateral.

 

CENTENE CORPORATION

By:

 

/s/ Karey L. Witty

--------------------------------------------------------------------------------

Title:

 

Senior Vice President and CFO

--------------------------------------------------------------------------------

AMENDED AND RESTATED NOTE

 

THIS DOES NOT CONSTITUTE A NOVATION

 

    September 9, 2005

$50,000,000.00

  Chicago, Illinois

 

The undersigned, for value received, promises to pay to the order of Wachovia
Bank, National Association (the “Lender”) at the principal office of LaSalle
Bank National Association (the “Administrative Agent”) in Chicago, Illinois the
aggregate unpaid amount of all Loans made to the undersigned by the Lender
pursuant to the Credit Agreement referred to below (as shown in the records of
the Lender), such principal amount to be payable on the dates set forth in the
Credit Agreement.

 

The undersigned further promises to pay interest on the unpaid principal amount
of each Loan from the date of such Loan until such Loan is paid in full, payable
at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of
both principal and interest are to be made in lawful money of the United States
of America.

 

This Amended and Restated Note (this “Note”) evidences indebtedness incurred
under, and is subject to the terms and provisions of, the Credit Agreement,
dated as of September 14, 2004 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”; terms not otherwise defined
herein are used herein as defined in the Credit Agreement), among the
undersigned, certain financial institutions (including the Lender) and the
Administrative Agent, to which Credit Agreement reference is hereby made for a
statement of the terms and provisions under which this Note may or must be paid
prior to its due date or its due date accelerated.

 

This Note is made under and governed by the laws of the State of Illinois
applicable to contracts made and to be performed entirely within such State.

 

This Note is an amendment and restatement, but not a novation or refinancing, of
that certain Note executed by the undersigned and payable to the order of Lender
in the original principal amount of $15,000,000 dated September 14, 2004. This
Note does not evidence or effect a release or relinquishment of the priority of
the Liens of Lender or Administrative Agent in any of the Collateral.

 

CENTENE CORPORATION

By:

 

/s/ Karey L. Witty

--------------------------------------------------------------------------------

Title:

  Senior Vice President and CFO

--------------------------------------------------------------------------------

NOTE

 

     September 9, 2005

$25,000,000.00

   Chicago, Illinois

 

The undersigned, for value received, promises to pay to the order of Regions
Bank (the “Lender”) at the principal office of LaSalle Bank National Association
(the “Administrative Agent”) in Chicago, Illinois the aggregate unpaid amount of
all Loans made to the undersigned by the Lender pursuant to the Credit Agreement
referred to below (as shown in the records of the Lender), such principal amount
to be payable on the dates set forth in the Credit Agreement.

 

The undersigned further promises to pay interest on the unpaid principal amount
of each Loan from the date of such Loan until such Loan is paid in full, payable
at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of
both principal and interest are to be made in lawful money of the United States
of America.

 

This Note evidences indebtedness incurred under, and is subject to the terms and
provisions of, the Credit Agreement, dated as of September 14, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”; terms not otherwise defined herein are used herein as defined in the
Credit Agreement), among the undersigned, certain financial institutions
(including the Lender) and the Administrative Agent, to which Credit Agreement
reference is hereby made for a statement of the terms and provisions under which
this Note may or must be paid prior to its due date or its due date accelerated.

 

This Note is made under and governed by the laws of the State of Illinois
applicable to contracts made and to be performed entirely within such State.

 

CENTENE CORPORATION

By:

 

/s/ Karey L. Witty

--------------------------------------------------------------------------------

Title:

 

Senior Vice President and CFO

--------------------------------------------------------------------------------

NOTE

 

     September 9, 2005

$25,000,000.00

   Chicago, Illinois

 

The undersigned, for value received, promises to pay to the order of SunTrust
Bank (the “Lender”) at the principal office of LaSalle Bank National Association
(the “Administrative Agent”) in Chicago, Illinois the aggregate unpaid amount of
all Loans made to the undersigned by the Lender pursuant to the Credit Agreement
referred to below (as shown in the records of the Lender), such principal amount
to be payable on the dates set forth in the Credit Agreement.

 

The undersigned further promises to pay interest on the unpaid principal amount
of each Loan from the date of such Loan until such Loan is paid in full, payable
at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of
both principal and interest are to be made in lawful money of the United States
of America.

 

This Note evidences indebtedness incurred under, and is subject to the terms and
provisions of, the Credit Agreement, dated as of September 14, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”; terms not otherwise defined herein are used herein as defined in the
Credit Agreement), among the undersigned, certain financial institutions
(including the Lender) and the Administrative Agent, to which Credit Agreement
reference is hereby made for a statement of the terms and provisions under which
this Note may or must be paid prior to its due date or its due date accelerated.

 

This Note is made under and governed by the laws of the State of Illinois
applicable to contracts made and to be performed entirely within such State.

 

CENTENE CORPORATION By:  

/s/ Karey L. Witty

--------------------------------------------------------------------------------

Title:   Senior Vice President and CFO

--------------------------------------------------------------------------------

AMENDED AND RESTATED NOTE

 

THIS DOES NOT CONSTITUTE A NOVATION

 

     September 9, 2005

$65,000,000.00

   Chicago, Illinois

 

The undersigned, for value received, promises to pay to the order of LaSalle
Bank National Association (the “Lender”) at the principal office of LaSalle Bank
National Association (the “Administrative Agent”) in Chicago, Illinois the
aggregate unpaid amount of all Loans made to the undersigned by the Lender
pursuant to the Credit Agreement referred to below (as shown in the records of
the Lender), such principal amount to be payable on the dates set forth in the
Credit Agreement.

 

The undersigned further promises to pay interest on the unpaid principal amount
of each Loan from the date of such Loan until such Loan is paid in full, payable
at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of
both principal and interest are to be made in lawful money of the United States
of America.

 

This Amended and Restated Note (this “Note”) evidences indebtedness incurred
under, and is subject to the terms and provisions of, the Credit Agreement,
dated as of September 14, 2004 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”; terms not otherwise defined
herein are used herein as defined in the Credit Agreement), among the
undersigned, certain financial institutions (including the Lender) and the
Administrative Agent, to which Credit Agreement reference is hereby made for a
statement of the terms and provisions under which this Note may or must be paid
prior to its due date or its due date accelerated.

 

This Note is made under and governed by the laws of the State of Illinois
applicable to contracts made and to be performed entirely within such State.

 

This Note is an amendment and restatement, but not a novation or refinancing, of
that certain Note executed by the undersigned and payable to the order of Lender
in the original principal amount of $40,000,000 dated December 2, 2004. This
Note does not evidence or effect a release or relinquishment of the priority of
the Liens of Lender or Administrative Agent in any of the Collateral.

 

CENTENE CORPORATION By:  

/s/ Karey L. Witty

--------------------------------------------------------------------------------

Title:   Senior Vice President and CFO

--------------------------------------------------------------------------------

CLOSING CERTIFICATE

 

This Closing Certificate (this “Certificate”) is delivered in connection with
that certain Amendment No. 2 dated as of September 9, 2005 (the “Amendment”) to
Credit Agreement dated September 14, 2004 by and among CENTENE CORPORATION, a
Delaware corporation (“Borrower”), LASALLE BANK NATIONAL ASSOCIATION, as
administrative agent for itself and the other Lenders (“Administrative Agent”)
and the Lenders (as amended, restated, extended, renewed, replaced, or otherwise
modified from time to time, the “Credit Agreement”). Capitalized terms used and
not otherwise defined herein have the meanings given them in the Credit
Agreement.

 

The undersigned hereby certifies to Administrative Agent and the Lenders that as
of the date of this Certificate, after giving effect to the execution of the
Amendment and the effectiveness of the Amendment:

 

(a) the representations and warranties of each Loan Party set forth in the
Credit Agreement and the other Loan Documents are true and correct in all
respects;

 

(b) no Event of Default or Unmatured Event of Default has occurred and is
continuing;

 

(c) all of the conditions to the making of the Loans described in the Credit
Agreement have been and remain satisfied, and the conditions to the
effectiveness of the Amendment have been and remain satisfied;

 

(d) the Amendment has been duly authorized by Borrower’s board of directors;

 

(e) since December 31, 2004 there has been no change in the financial condition
or business operations of Borrower or any Loan Party which could reasonably be
expected to result in a Material Adverse Effect;

 

(f) no consents are necessary from any third parties for Borrower’s execution,
delivery or performance of the Credit Agreement which have not been obtained;

 

(g) the Amendment, the Credit Agreement and all of the other Loan Documents
constitute the legal, valid and binding obligation of Borrower, enforceable
against Borrower in accordance with their terms except as enforcement thereof
may be limited by bankruptcy, insolvency or other laws related to creditors’
rights generally or by the application of equity principles; and

 

(h) there are no proceedings or any kind, pending or, to the knowledge of
Borrower, threatened against Borrower or any Loan Party which could reasonably
be expected to result in a Material Adverse Effect.

 

Dated as of September 9, 2005.

 

CENTENE CORPORATION By:  

/s/ Karey L. Witty

--------------------------------------------------------------------------------

Name:   Karey L. Witty Title:   Senior Vice President and CFO