Exhibit 10.5

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of
November 6, 2006, is entered into among HEALTH NET, INC., a Delaware corporation
(the “Borrower”), the Lenders and JPMORGAN CHASE BANK, N.A., as administrative
agent (the “Administrative Agent”). Terms used but not otherwise defined herein
shall have the meanings provided in the Credit Agreement described below.

W I T N E S S E T H

WHEREAS, the Borrower, the Lenders party thereto, and the Administrative Agent
entered into that certain Credit Agreement dated as of June 23, 2006 (the
“Existing Credit Agreement”);

WHEREAS, the Borrower has requested that the Required Lenders agree to amend
certain provisions of the Credit Agreement as hereinafter set forth; and

WHEREAS, the Required Lenders have agreed to such modifications on the terms and
conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

PART 1

DEFINITIONS

SUBPART 1.1 Certain Definitions. Unless otherwise defined herein or the context
otherwise requires, the following terms used in this Amendment, including its
preamble and recitals, have the following meanings:

“Amended Credit Agreement” means the Existing Credit Agreement as amended
hereby.

“Amendment No. 1 Effective Date” is defined in Subpart 3.1.

SUBPART 1.2 Other Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Amendment, including its preamble and
recitals, have the meanings provided in the Existing Credit Agreement.

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PART 2

AMENDMENT TO EXISTING CREDIT AGREEMENT

Effective on (and subject to the occurrence of) the Amendment No. 1 Effective
Date, the Existing Credit Agreement is hereby amended in accordance with this
Part 2.

SUBPART 2.1 Amendment to Section 1.01. The definition of “Specified Share
Repurchase” found in Section 1.01 of the Existing Credit Agreement is hereby
amended and restated to read as follows:

“Specified Share Repurchase” means that certain redemption, purchase or other
acquisition for value, direct or indirect, of any shares of any class of capital
stock of the Borrower in an amount not to exceed $500,000,000.

PART 3

CONDITIONS TO EFFECTIVENESS

SUBPART 3.1 Amendment No. 1 Effective Date. This Amendment shall be and become
effective as of the date hereof (the “Amendment No. 1 Effective Date”) when all
of the conditions set forth in this Part 3 shall have been satisfied, and
thereafter this Amendment shall be known, and may be referred to, as the
“Amendment”.

SUBPART 3.2 Execution of Counterparts of Amendment. The Administrative Agent
shall have received counterparts of this Amendment, which collectively shall
have been duly executed on behalf of each of the Borrower, the Required Lenders
and the Administrative Agent.

SUBPART 3.3 Fees and Expenses. The Administrative Agent shall have received all
out-of-pocket costs and expenses of the Administrative Agent in connection with
the preparation, execution and delivery of this Amendment (including without
limitation the fees and expenses of Moore & Van Allen PLLC, special counsel to
the Administrative Agent to the extent the Borrower has received an invoice
prior to the Amendment No. 1 Effective Date).

PART 4

MISCELLANEOUS

SUBPART 4.1 Representations and Warranties. The Borrower hereby represents and
warrants to the Administrative Agent and the Lenders that, after giving effect
to this Amendment, (a) no Default or Event of Default exists under the Existing
Credit Agreement and (b) the representations and warranties set forth in Article
V of the Existing Credit Agreement (i) that contain a materiality qualification
are true and correct on and as of the date hereof, subject to the limitations
set forth therein, as if made on and as of such date (except to the extent such
representations and warranties expressly relate to another date in which case
such representations and warranties shall be true and correct as of such date)
and (ii) that do not contain a materiality qualification are true and correct in
all material respects on and as of the date hereof, subject to the limitations
set forth therein, as if made on and as of such date (except to the extent such
representations and warranties expressly relate to another date in which case
such representations and warranties shall be true and correct in all material
respects as of such date).

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SUBPART 4.2 Cross-References. References in this Amendment to any Part or
Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment.

SUBPART 4.3 Instrument Pursuant to Existing Credit Agreement. This Amendment is
executed pursuant to the Existing Credit Agreement and shall (unless otherwise
expressly indicated therein) be construed, administered and applied in
accordance with the terms and provisions of the Existing Credit Agreement.

SUBPART 4.4 References in Other Loan Documents. At such time as this Amendment
shall become effective pursuant to the terms of Subpart 3.1, all references to
the “Credit Agreement” shall be deemed to refer to the Credit Agreement as
amended by this Amendment.

SUBPART 4.5 Counterparts/Telecopy. This Amendment may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.
Delivery of executed counterparts of the Amendment by telecopy or other
electronic means shall be effective as an original and shall constitute a
representation that an original shall be delivered.

SUBPART 4.6 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT
EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAW RULES).

SUBPART 4.7 Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

SUBPART 4.8 General. Except as amended hereby, the Existing Credit Agreement and
all other credit documents shall continue in full force and effect.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the
Credit Agreement as of the date first above written.

 

BORROWER:    

HEALTH NET, INC.,

a Delaware corporation

    By:   /s/ Wisdom Lu       Name:   Wisdom Lu       Title:   Treasurer

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ADMINISTRATIVE AGENT:     JPMORGAN CHASE BANK, N.A.,     By:   /s/ Dawn Lee Lum
      Name:   Dawn Lee Lum       Title:   Vice President

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    CITICORP USA, INC.     By:   /s/ Peter C. Bickford       Name:   Peter C.
Bickford       Title:   Vice President

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    NATIONAL CITY BANK     By:   /s/ Gustavus A. Bahr       Name:   Gustavus A.
Bahr       Title:   Vice President

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    UBS LOAN FINANCE, LLC     By:   /s/ Richard L. Tavrow       Name:   Richard
L. Tavrow       Title:   Director     By:   /s/ Irja R. Otsa       Name:   Irja
R. Otsa       Title:   Associate Director

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    THE BANK OF NEW YORK     By:   /s/ Jonathan Rollins       Name:   Jonathan
Rollins, CFA       Title:   Vice President

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    THE BANK OF NOVA SCOTIA     By:   /s/ V.H. Gibson       Name:   V.H. Gibson
      Title:   Assistant Agent

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    U.S. BANK NATIONAL ASSOCIATION     By:   /s/ Timothy D. Myers       Name:  
Timothy D. Myers       Title:   Vice President

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JPMORGAN CHASE BANK, N.A.

as Lender

    By:   /s/ Dawn Lee Lum       Name:   Dawn Lee Lum       Title:   Vice
President

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    UNION BANK OF CALIFORNIA, N.A.     By:   /s/ Philip M. Roesner       Name:  
Philip M. Roesner       Title:   Vice President