##### 



Exhibit 10.4
 EXECUTION VERSION
 CREDIT AND GUARANTY AGREEMENT
 dated as of March 26, 2007
 among
 AMERIGROUP CORPORATION,
 CERTAIN SUBSIDIARIES OF AMERIGROUP CORPORATION,
as Guarantors,
 VARIOUS LENDERS,
 WACHOVIA CAPITAL MARKETS, LLC,
as Joint Lead Arranger and Joint Bookrunner,
 GOLDMAN SACHS CREDIT PARTNERS L.P.,
as Joint Lead Arranger, Joint Bookrunner and Syndication Agent,
 and
 WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent and Collateral Agent
 
 $401,317,805.50 Senior Secured Credit Facilities




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##### 



TABLE OF CONTENTS
 PageSECTION 1. DEFINITIONS AND INTERPRETATION
    
    
    21.1.
    
    Definitions
    
    
    21.2.
    
    Accounting Terms
    
    
    361.3.
    
    Interpretation, etc.
    
    
    36SECTION 2. LOANS AND LETTERS OF CREDIT
    
    
    372.1.
    
    Synthetic L/C Facility; Credit-Linked Deposits; Payments
    
    
    372.2.
    
    Revolving Loans
    
    
    432.3.
    
    Swing Line Loans
    
    
    442.4.
    
    Issuance of Revolving Letters of Credit and Purchase of Participations Therein
    
    
    462.5.
    
    Pro Rata Shares; Availability of Funds
    
    
    502.6.
    
    Use of Proceeds
    
    
    512.7.
    
    Evidence of Debt; Register; Lenders Books and Records; Notes
    
    
    512.8.
    
    Interest on Loans
    
    
    522.9.
    
    Conversion/Continuation
    
    
    542.10.
    
    Default Interest
    
    
    542.11.
    
    Fees
    
    
    552.12.
    
    [Reserved]
    
    
    562.13.
    
    Voluntary Prepayments/Commitment Reductions
    
    
    562.14.
    
    Mandatory Prepayments/Commitment Reductions
    
    
    572.15.
    
    Application of Prepayments/Reductions
    
    
    592.16.
    
    General Provisions Regarding Payments
    
    
    602.17.
    
    Ratable Sharing
    
    
    612.18.
    
    Making or Maintaining Eurodollar Rate Loans
    
    
    622.19.
    
    Increased Costs; Capital Adequacy
    
    
    642.20.
    
    Taxes; Withholding, etc.
    
    
    652.21.
    
    Obligation to Mitigate
    
    
    682.22.
    
    Defaulting Lenders
    
    
    682.23.
    
    Removal or Replacement of a Lender
    
    
    69SECTION 3. CONDITIONS PRECEDENT
    
    
    703.1.
    
    Closing Date
    
    
    703.2.
    
    Conditions to Each Credit Extension
    
    
    74SECTION 4. REPRESENTATIONS AND WARRANTIES
    
    
    754.1.
    
    Financial Statements; Projections.
    
    
    754.2.
    
    No Material Adverse Effect
    
    
    754.3.
    
    Existence, Qualification and Power
    
    
    754.4.
    
    Compliance with Laws
    
    
    754.5.
    
    Authorization; No Contravention
    
    
    764.6.
    
    Governmental Authorization; Other Consents
    
    
    764.7.
    
    Binding Effect
    
    
    774.8.
    
    Litigation
    
    
    77
 ii




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##### 



Page4.9.
    
    No Default
    
    
    774.10.
    
    Ownership of Property; Liens
    
    
    774.11.
    
    Intellectual Property.
    
    
    774.12.
    
    No Burdensome Restrictions
    
    
    784.13.
    
    Taxes
    
    
    784.14.
    
    ERISA Compliance
    
    
    784.15.
    
    Margin Regulations; Investment Company Act; Reportable Transactions
    
    
    794.16.
    
    Subsidiaries
    
    
    804.17.
    
    Purpose of Credit Extensions
    
    
    804.18.
    
    Environmental Compliance
    
    
    804.19.
    
    Disclosure; No Material Misstatements
    
    
    804.20.
    
    Labor Matters
    
    
    814.21.
    
    Insurance
    
    
    814.22.
    
    Collateral Documents
    
    
    814.23.
    
    Location of Property
    
    
    824.24.
    
    Fraud and Abuse
    
    
    824.25.
    
    Licensing and Accreditation
    
    
    824.26.
    
    No Restricted Junior Payments
    
    
    834.27.
    
    Material Contracts
    
    
    834.28.
    
    Solvency
    
    
    834.29.
    
    Patriot Act
    
    
    83SECTION 5. AFFIRMATIVE COVENANTS
    
    
    845.1.
    
    Financial Statements and Other Reports
    
    
    845.2.
    
    Certificates; Other Information
    
    
    865.3.
    
    Notification
    
    
    885.4.
    
    Preservation of Existence; Licensing
    
    
    895.5.
    
    Books and Records
    
    
    905.6.
    
    Compliance with Laws
    
    
    905.7.
    
    Payment of Obligations
    
    
    905.8.
    
    Maintenance of Insurance
    
    
    905.9.
    
    Maintenance of Properties
    
    
    905.10.
    
    Performance of Obligations
    
    
    915.11.
    
    Inspection Rights
    
    
    915.12.
    
    Use of Proceeds
    
    
    915.13.
    
    Joinder of Additional Guarantors
    
    
    915.14.
    
    Pledged Assets
    
    
    915.15.
    
    Lenders Meetings
    
    
    925.16.
    
    Environmental
    
    
    925.17.
    
    Interest Rate Protection
    
    
    935.18.
    
    Maintenance of Ratings
    
    
    935.19.
    
    Real Estate Assets
    
    
    935.20.
    
    Credit-Linked Letter of Credit
    
    
    955.21.
    
    Post-Closing Matters
    
    
    955.22.
    
    Consummation of the Transactions Contemplated by Convertible  Senior Notes Documents
    
    
    95
 iii




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##### 



PageSECTION 6. NEGATIVE COVENANTS
    
    
    966.1.
    
    Liens
    
    
    966.2.
    
    Investments
    
    
    976.3.
    
    Indebtedness
    
    
    996.4.
    
    Mergers and Dissolutions
    
    
    1016.5.
    
    Disposition of Assets
    
    
    1026.6.
    
    Restricted Junior Payments
    
    
    1026.7.
    
    Modifications in respect of Indebtedness
    
    
    1036.8.
    
    Transactions with Affiliates
    
    
    1036.9.
    
    Change in Nature of Business; Fiscal Year
    
    
    1046.10.
    
    Foreign Subsidiaries
    
    
    1046.11.
    
    No Further Negative Pledges.
    
    
    1046.12.
    
    Ownership of Subsidiaries; Limitations on Borrower
    
    
    1056.13.
    
    Sale and Leaseback Transactions
    
    
    1056.14.
    
    Operating Lease Obligations
    
    
    1056.15.
    
    Financial Covenants
    
    
    1056.16.
    
    Restrictions on Subsidiary Distributions
    
    
    1076.17.
    
    Disposal of Subsidiary Interests
    
    
    1076.18.
    
    Amendments or Waivers of with respect to Convertible Senior Notes Indebtedness, Subordinated Indebtedness and other Material Indebtedness
    
    
    108SECTION 7. GUARANTY
    
    
    1087.1.
    
    Guaranty of the Obligations
    
    
    1087.2.
    
    Contribution by Guarantors
    
    
    1087.3.
    
    Payment by Guarantors
    
    
    1097.4.
    
    Liability of Guarantors Absolute
    
    
    1097.5.
    
    Waivers by Guarantors
    
    
    1117.6.
    
    Guarantors Rights of Subrogation, Contribution, etc.
    
    
    1127.7.
    
    Subordination of Other Obligations
    
    
    1137.8.
    
    Continuing Guaranty
    
    
    1137.9.
    
    Authority of Guarantors or Borrower
    
    
    1137.10.
    
    Financial Condition of Borrower
    
    
    1137.11.
    
    Bankruptcy, etc.
    
    
    1137.12.
    
    Discharge of Guaranty Upon Sale of Guarantor
    
    
    114SECTION 8. EVENTS OF DEFAULT
    
    
    1148.1.
    
    Events of Default
    
    
    114SECTION 9. AGENTS
    
    
    1189.1.
    
    Appointment of Agents.
    
    
    1189.2.
    
    Powers and Duties
    
    
    1189.3.
    
    General Immunity
    
    
    1199.4.
    
    Agents Entitled to Act as Lender
    
    
    1209.5.
    
    Lenders Representations, Warranties and Acknowledgment
    
    
    1209.6.
    
    Right to Indemnity
    
    
    1219.7.
    
    Successor Administrative Agent, Collateral Agent and Swing Line Lender
    
    
    121
 iv




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##### 



Page9.8.
    
    Collateral Documents and Guaranty
    
    
    122SECTION 10. MISCELLANEOUS
    
    
    12310.1.
    
    Notices
    
    
    12310.2.
    
    Expenses
    
    
    12510.3.
    
    Indemnity
    
    
    12510.4.
    
    Set-Off
    
    
    12610.5.
    
    Amendments and Waivers
    
    
    12710.6.
    
    Successors and Assigns; Participations
    
    
    12910.7.
    
    Independence of Covenants
    
    
    13210.8.
    
    Survival of Representations, Warranties and Agreements
    
    
    13210.9.
    
    No Waiver; Remedies Cumulative
    
    
    13210.10.
    
    Marshalling; Payments Set Aside
    
    
    13310.11.
    
    Severability
    
    
    13310.12.
    
    Obligations Several; Independent Nature of Lenders Rights
    
    
    13310.13.
    
    Headings
    
    
    13310.14.
    
    APPLICABLE LAW
    
    
    13310.15.
    
    CONSENT TO JURISDICTION
    
    
    13310.16.
    
    WAIVER OF JURY TRIAL
    
    
    13410.17.
    
    Confidentiality
    
    
    13510.18.
    
    Usury Savings Clause
    
    
    13510.19.
    
    Counterparts
    
    
    13610.20.
    
    Effectiveness
    
    
    13610.21.
    
    Patriot Act
    
    
    13610.22.
    
    Electronic Execution of Assignments
    
    
    13610.23.
    
    Release of PHP
    
    
    136
 v




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##### 



APPENDICES:
    
    
    A-1
    
    
    Credit-Linked CommitmentsA-2
    
    
    Revolving CommitmentsB
    
    
    Notice AddressesSCHEDULES:
    
    
    1.1
    
    
    Immaterial Subsidiaries1.1.A
    
    
    Surplus Notes4.8
    
    
    Litigation4.11
    
    
    Intellectual Property4.16
    
    
    Equity Interests, Ownership, Jurisdictions of Organization and Qualification, and Subsidiaries4.20
    
    
    Labor Matters4.23
    (a)
    
    Real Property4.23
    (b)
    
    Tangible Personal Property4.23
    (c)
    
    Chief Executive Office and Principal Place of Business4.27
    
    
    Material Contracts5.8
    
    
    Insurance5.21
    
    
    Post-Closing Matters6.1
    
    
    Certain Liens6.2
    (b)
    
    Certain Investments6.2
    (k)
    
    Investment Policy6.3
    
    
    Certain Indebtedness6.8
    
    
    Certain Affiliate Transactions6.16
    
    
    Certain Restrictions on Subsidiary DistributionsEXHIBITS:
    
    
    A-1
    
    
    Funding NoticeA-2
    
    
    Conversion/Continuation NoticeA-3
    
    
    Issuance NoticeB-1
    
    
    Credit-Linked NoteB-2
    
    
    Revolving Loan NoteB-3
    
    
    Swing Line NoteB-4
    
    
    Term Loan NoteB-5
    
    
    Credit Linked Letter of CreditC
    
    
    Compliance CertificateD
    
    
    Opinions of CounselE
    
    
    Assignment AgreementF
    
    
    Certificate Re Non-bank StatusG-1
    
    
    Closing Date CertificateG-2
    
    
    Solvency CertificateH
    
    
    Counterpart AgreementI
    
    
    Pledge and Security AgreementJ
    
    
    MortgageK
    
    
    Landlord Waiver and Consent AgreementL
    
    
    Intercompany Note
 vi




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##### 



CREDIT AND GUARANTY AGREEMENT
 CREDIT AND GUARANTY AGREEMENT AMERIGROUP CORPORATION Borrower CERTAIN SUBSIDIARIES OF BORROWER WACHOVIA CAPITAL MARKETS, LLC Wachovia
Capital Markets GOLDMAN SACHS CREDIT PARTNERS L.P. GSCP Arrangers Syndication Agent WACHOVIA BANK, NATIONAL ASSOCIATION Wachovia Bank Administrative Agent Collateral Agent
 RECITALS:
 WHEREAS,
 WHEREAS Credit Facilities Synthetic L/C Facility Judgment Tyson v. Amerigroup Illinois, Inc. Tyson Case
 WHEREAS,
 WHEREAS,




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##### 



NOW, THEREFORE,
 SECTION 1. DEFINITIONS AND INTERPRETATION
 1.1 Definitions.
 Adjusted Eurodollar Rate minus
  Administrative Agent
 Adverse Proceeding
 Affected Lender
 2




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Affected Loans
 Affiliate
 Agent
 Agent Affiliates
 Aggregate Amounts Due
 Aggregate Payments
 Agreement
 Applicable Margin
 Applicable Margin forApplicable Margin for
    
    Revolving Loans and SwingRevolving Loans that are
    
    Line Loans that are Base RateLeverage Ratio
    
    Eurodollar Rate Loans
    
    Loans3 1.50:1.00
    
    2.25%
    
    1.25%< 1.50:1.00
    
    2.00%
    
    1.00%
  3




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##### 



Applicable Reserve Requirement
 Applicable Revolving Commitment Fee Percentage
 Approved Electronic Communications
 Arrangers
 Asset Sale
 Assignment Agreement
 Assignment Effective Date
 Authorized Officer
 Bankruptcy Code
 Base Rate 4
       1 2
 Base Rate Loan
 Beneficiary
 Board of Governors
 Borrower
 Borrower Adjusted EBITDA plus minus
 Borrower Capital Expenditures
 Borrower Current Assets
 Borrower Current Liabilities
 Borrower Interest Expense
 5




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##### 



Borrower Net Income minus
 Borrower Working Capital
 Borrower Working Capital Adjustment
 Business Day Business Day
 Capital Lease
 Cash
 Cash Collateral Account
 Cash Collateral Deposit
 6




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##### 



Cash Equivalents
 Certificate re Non-Bank Status
 Change of Control
 Class
 Closing Date
 7




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##### 



Closing Date Certificate
 Closing Date Mortgaged Property
 CMS
 Collateral
 Collateral Agent
 Collateral Documents
 Collateral Questionnaire
 Commitment
 Company Action Level
 Compliance Certificate
 Consolidated Adjusted EBITDA plus minus
 Consolidated Interest Expense 8
        Consolidated Net Income minus
 Consolidated Total Debt
 Contract Provider
 Contractual Obligation
 Contributing Guarantors
 Conversion/Continuation Date
 Conversion/Continuation Notice
 Convertible Senior Notes 9
        Convertible Senior Notes Documents
 Convertible Senior Notes Indebtedness
 Convertible Senior Notes Indenture
 Counterpart Agreement
 Credit Date
 Credit Document
 Credit Extension
 Credit Facilities
 Credit-Linked Account
 Credit-Linked Commitment provided
 Credit-Linked Commitment Percentage 10
        Credit-Linked Commitment Period
 Credit-Linked Deposit provided
 Credit-Linked Issuing Bank
 Credit-Linked Lenders
 Credit-Linked Letter of Credit
 Credit-Linked Letter of Credit Usage
 Credit-Linked LOC Committed Amount
 Credit-Linked LOC Exposure
 Credit-Linked LOC Fronting Fee
 Credit-Linked Maturity Date
 11




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##### 



Credit-Linked Note
 Credit-Linked Participation
 Credit-Linked Purchase
 Credit Party
 Currency Agreement
 Debtor Relief Laws
 Default
 Default Excess
 Default Period
 Defaulted Loan
 12




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##### 



Defaulting Lender
 Deposit Account
 Disqualified Equity Interests
 Dollars $
 Domestic Subsidiary
 Eligible Assignee provided
 Employee Benefit Plan
 Environmental Claim 13
        Environmental Laws
 Equity Interests
 ERISA
 ERISA Affiliate
 ERISA Event 14
        Eurodollar Rate Loan
 Event of Default
 Excess Cash Flow minus
 Exchange Act
 15




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##### 



Exclusion Event
 Existing Indebtedness
 Facility
 Fair Share Contribution Amount
 Fair Share
 Family Care
 Federal Funds Effective Rate
 Financial Officer Certification
 Financial Plan
 First Priority
 Fiscal Quarter
 Fiscal Year
 16




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##### 



Flood Hazard Property
 Foreign Subsidiary
 Funding Default
 Funding Guarantors
 Funding Notice
 GAAP
 Governmental Acts
 Governmental Authority
 Governmental Authorization
 Governmental Reimbursement Program Cost
    Grantor
 17




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##### 



Guaranteed Obligations
 Guarantor
 Guarantor Subsidiary
 Guaranty
 Hazardous Materials
 Hazardous Materials Activity
 Hedge Agreement
 HHS
 Highest Lawful Rate
 HIPAA
 Historical Financial Statements
 18




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##### 



HMO
 HMO Business
 HMO Event
 HMO Regulations
 HMO Regulator
 HMO Subsidiary Schedule 4.16
 Illinois Subsidiary
 Immaterial Subsidiary
 19




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##### 



Increased Amount Date
 Increased-Cost Lenders
 Indebtedness provided
 Indemnified Liabilities
 20




---



##### 



Indemnitee
 Installment
 Intellectual Property
 Intellectual Property Asset
 Intellectual Property Security Agreements
 Intercompany Note
 Interest Coverage Ratio
 Interest Payment Date provided
 21




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##### 



Interest Period provided
 Interest Rate Agreement
 Interest Rate Agreement Termination Value
 Interest Rate Determination Date
 Internal Revenue Code
 Investment
 22




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##### 







Issuance Notice


Issuing Bank


Joint Venture provided


Judgment


Landlord Consent and Estoppel


Landlord Personal Property Collateral Access Agreement


Leasehold Property


Lender


Lender Counterparty


Letters of Credit


23



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##### 



Letter of Credit Usage
 Leverage Ratio
 Licensed Intellectual Property
 Licensor Consent and Estoppel
 Lien
 Loan
 Margin Stock
 Material Adverse Effect
 Material Contract
 Material Real Estate Asset 24
        Medicaid
 Medicaid Regulations (a) (a) (a) (b) (c) (b)
 Medical Reimbursement Programs
 Medical Reimbursement Program Provider Agreements
 Medicare
 Medicare Regulations
 25




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##### 



Minimum Liquidity
 Moodys
 Mortgage
 Multiemployer Plan
 NAIC
 Net Asset Sale Proceeds minus
 Net Insurance/Condemnation Proceeds minus
 Nonpublic Information
 26




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##### 



Non-US Lender
 Note
 Notes Offering Memorandum
 Notice
 Obligations
 Obligee Guarantor
 OIG
 Operating Lease
 Organizational Documents
 Other Taxes excluding however
 PBGC
 27




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##### 



Pension Plan
 Permitted Acquisition provided
        28




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##### 



Permitted Liens
 Person
 Platform
 Pledge and Security Agreement
 Prime Rate
 Principal Office
 Projections
 Pro Rata Share
 Real Estate Asset
 Record Document 29
        Recorded Leasehold Interest
 Refunded Swing Line Loans
 Register
 Regulation D
 Regulation FD
 Reimbursement Date
 Related Fund
 Release
 Replacement Lender
 Required Advances
 Required Prepayment Date
 Requisite Lenders
 Restricted Junior Payment 30
        Revolving Commitment Revolving Commitments
 Revolving Commitment Period
 Revolving Commitment Termination Date
 Revolving Exposure
 Revolving Issuing Bank
 Revolving Letter of Credit
 Revolving Letter of Credit Sublimit
 Revolving Letter of Credit Usage 31
        Revolving Loan
 Revolving Loan Note
 Risk-Based Capital
 S&P
 Sale and Leaseback Transaction
 SAP
 SCHIP
 SEC
 Secured Parties
 Securities
 32




---



##### 



Securities Act
 Settlement Confirmation
 Settlement Service
 Shortfall Amount
 Social Security Act
 Solvency Certificate
 Solvent
 Spread Overlay Agreements
 Stark I and II 33
        Statutory Net Worth
 Subject Transaction
 Subsidiary provided provided further
 Successful Syndication Date
 Support Obligations
 Surplus Notes
 34




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##### 



Swing Line Lender
 Swing Line Loan
 Swing Line Note
 Swing Line Sublimit
 Syndication Agent
 Synthetic L/C Facility
 Synthetic Lease
 Tax provided
 Term Loan
 Term Loan Exposure provided
 Terminated Lender
 Total Utilization of Revolving Commitments
 35




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##### 



Transaction Costs
 Type of Loan
 UCC
 UCP
 Unadjusted Eurodollar Rate Component
 Unfunded Pension Liability
 Unreimbursed Drawing
 U.S. Lender
 1.2. Accounting Terms.
 1.3. Interpretation, etc.
 36




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##### 



SECTION 2. LOANS AND LETTERS OF CREDIT
 2.1. Synthetic L/C Facility; Credit-Linked Deposits; Payments
 Synthetic L/C Facility
 Issuance Credit-Linked LOC
Committed Amount plus minus
 37




---



##### 



Notice and Reports
 Participations Credit-Linked
Participation
 38




---



##### 



Reimbursement; Funding of Participation Interests; Funding From Cash
Collateral Account
 Reimbursement by Borrower
 Funding of Participation Interests by Credit-Linked Lenders; Funding From Cash
Collateral Account; Conversion to Term Loans Unreimbursed Drawing Credit-Linked
Purchase
 39




---



##### 



Repayment of Participations
   40




---



##### 



Uniform Customs and Practices ISP 98
 Credit-Linked Note
 Credit-Linked Deposits
 Funding of Credit-Linked Deposits
 Purpose of Credit-Linked Deposits
 41




---



##### 



Actions of Administrative Agent
 Grant of Security Interest in Credit-Linked Account and Cash Collateral
Account
 Investment of Credit-Linked Deposits
 Reduction of Credit-Linked Deposit; Return of Credit-Linked Deposit
 42




---



##### 



Amortization; Prepayments
 2.2. Revolving Loans
 Revolving Commitments provided
 Borrowing Mechanics for Revolving Loans
    43




---



##### 



2.3. Swing Line Loans
 Swing Line Loans Commitments provided
     44




---



##### 



Refunded Swing Line Loans
  45




---



##### 



provided
 2.4. Issuance of Revolving Letters of Credit and Purchase of Participations Therein
 Revolving Letters of Credit provided
 46




---



##### 



provided provided further
 Notice of Issuance
 Responsibility of Issuing Bank With Respect to Requests for Drawings and
Payments
 47




---



##### 



Reimbursement by Borrower of Amounts Drawn or Paid Under Letters of Credit Reimbursement Date provided provided further
 Lenders Purchase of Participations in Letters of Credit
 48




---



##### 



Obligations Absolute
 49




---



##### 



provided
 Indemnification
 2.5. Pro Rata Shares; Availability of Funds
 Pro Rata Shares
 Availability of Funds
 50




---



##### 



2.6. Use of Proceeds
 2.7. Evidence of Debt; Register; Lenders Books and Records; Notes.
 Lenders Evidence of Debt provided provided further
 Register Register provided
 51




---



##### 



Notes
 2.8. Interest on Loans
      provided
  52




---



##### 



provided
 provided
   53




---



##### 



2.9. Conversion/Continuation
  provided
   2.10. Default Interest. provided
 54




---



##### 



2.11. Fees
    Credit-Linked Subfacility Fee
    Credit-Linked LOC Fronting Fee
 55




---



##### 



2.12. [Reserved].
 2.13. Voluntary Prepayments/Commitment Reductions
 Voluntary Prepayments
   provided
    56




---



##### 



Voluntary Commitment Reductions
 provided
  2.14. Mandatory Prepayments/Commitment Reductions
 Asset Sales provided
 57




---



##### 



Insurance/Condemnation Proceeds provided
 Issuance of Equity Securities
 Issuance of Debt
 Excess Cash Flow
 provided provided
 58




---



##### 



minus provided
 Revolving Loans and Swing Loans first second
 Credit-Linked LOC Committed Amount
 Prepayment Certificate
 2.15. Application of Prepayments/Reductions
 Application of Voluntary Prepayments by Type of Loans provided
 first
 second
 59




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##### 



third
 Application of Mandatory Prepayments by Type of Loans
 first
 second
 third
 fourth
 fifth
  Application of Prepayments of Loans to Base Rate Loans and Eurodollar Rate Loans
 2.16. General Provisions Regarding Payments
   60




---



##### 



2.17. Ratable Sharing.
 61




---



##### 



Aggregate Amounts Due provided
 2.18. Making or Maintaining Eurodollar Rate Loans
 Inability to Determine Applicable Interest Rate
 Illegality or Impracticability of Eurodollar Rate Loans
 62




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##### 



Affected Lender Affected Loans
 Compensation for Breakage or Non-Commencement of Interest Periods
 Booking of Eurodollar Rate Loans
 Assumptions Concerning Funding of Eurodollar Rate Loans
 63




---



##### 



provided however
 2.19. Increased Costs; Capital Adequacy
 Compensation For Increased Costs and Taxes
 Capital Adequacy Adjustment
 64




---



##### 



2.20. Taxes; Withholding, etc.
 Payments to Be Free and Clear
 Withholding of Taxes
 65




---



##### 



provided further
 Evidence of Exemption From U.S. Withholding Tax Non-US Lender U.S.
Lender
 66




---



##### 



provided
  provided however
 67




---



##### 



2.21. Obligation to Mitigate provided
 2.22. Defaulting Lenders
.. Defaulting Lender Funding Default Defaulted Loan
 68




---



##### 



2.23. Removal or Replacement of a Lender. Increased-Cost Lender Non-Consenting Lender Terminated Lender Replacement Lender provided
 69




---



##### 



provided provided
 SECTION 3. CONDITIONS PRECEDENT
 3.1. Closing Date
 Credit Documents
 Organizational Documents; Incumbency
 Organizational and Capital Structure
 70




---



##### 



Existing Indebtedness
 Transaction Costs
 Governmental Authorizations and Consents
 Landlord Waiver and Consent
 Personal Property Collateral
  71




---



##### 



Financial Statements; Projections
 Evidence of Insurance
 Opinions of Counsel to Credit Parties
 Fees
 72




---



##### 



Solvency Certificate
 Closing Date Certificate
 Credit Rating
 No Litigation
 Completion of Proceedings
 Letter of Direction
 Maximum Leverage Ratio
 Minimum Unregulated Cash Balance
  73




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##### 



3.2. Conditions to Each Credit Extension
 Conditions Precedent
       Notices provided
 74




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##### 



SECTION 4. REPRESENTATIONS AND WARRANTIES
  4.1. Financial Statements; Projections.
 Section 5.1
 Projections provided provided further
 4.2. No Material Adverse Effect
..
 4.3. Existence, Qualification and Power. (b)(i) (c)
 4.4. Compliance with Laws.
 75




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##### 



4.5. Authorization; No Contravention.
 4.6. Governmental Authorization; Other Consents.
 76




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##### 



4.7. Binding Effect.
 4.8. Litigation. Schedule 4.8
 4.9. No Default.
 4.10. Ownership of Property; Liens.
 4.11. Intellectual Property. Schedule 4.11
 77




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##### 



4.12. No Burdensome Restrictions.
 4.13. Taxes.
 4.14. ERISA Compliance.
    78




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##### 



4.15. Margin Regulations; Investment Company Act; Reportable Transactions.
    79




---



##### 



4.16. Subsidiaries. Schedule 4.16 Schedule 4.16 Schedule 4.16 Schedule
4.16
 4.17. Purpose of Credit Extensions Section 2.6
 4.18. Environmental Compliance.
 4.19. Disclosure; No Material Misstatements. provided
 80




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##### 



4.20. Labor Matters.
      Schedule 4.20
 4.21. Insurance. provided
 4.22. Collateral Documents.
 81




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##### 



(i) (ii) provided
 4.23. Location of Property. Schedule 4.23(a) Schedule 4.23(b) Schedule 4.23(c)
 4.24. Fraud and Abuse.
 4.25. Licensing and Accreditation.
  82




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##### 



4.26. No Restricted Junior Payments.
 4.27. Material Contracts. Schedule 4.27
 4.28. Solvency.
 4.29. Patriot Act.
 83




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SECTION 5. AFFIRMATIVE COVENANTS
  5.1. Financial Statements and Other Reports.
 Annual Financial Statements
  84




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##### 



Quarterly Financial Statements
 (a)
 (a)
  Statements of Reconciliation after Change in Accounting Principles
 Information Regarding Collateral
 85




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Certification of Public Information Platform
 5.2. Certificates; Other Information.
 Sections
5.1(a) (b)
 Section 5.1(b) provided Section 5.2(d)
 86
       Financial
Plan
      Section 5.1(a) (b) Section 5.2(g) Appendix B provided
 87




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##### 



i.e. Section 5.2(a)
 5.3. Notification.
       88




---



##### 



Section 5.3(a)
 5.4. Preservation of Existence; Licensing.
 Section 6.4 6.5
  89




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##### 



5.5. Books and Records.
 5.6. Compliance with Laws.
 5.7. Payment of Obligations. provided provided further
 5.8. Maintenance of Insurance. Schedule 5.8
 5.9. Maintenance of Properties.
 90




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5.10. Performance of Obligations
..
 5.11. Inspection Rights
 5.12. Use of Proceeds. Section 2.6
 5.13. Joinder of Additional Guarantors. Sections 3.1(j) 3.1(k)
 5.14. Pledged Assets.
 91




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##### 



5.15. Lenders Meetings.
 5.16. Environmental
 Environmental Disclosure
     92




---



##### 



Hazardous Materials Activities, Etc
 5.17. Interest Rate Protection. provided Section 5.17
 5.18. Maintenance of Ratings.
 5.19. Real Estate Assets.
  93




---



##### 



Title Policy
 94




---



##### 



5.20. Credit-Linked Letter of Credit.
 5.21. Post-Closing Matters.
 5.22. Consummation of the Transactions Contemplated by Convertible Senior Notes Documents.
   95




---



##### 



SECTION 6. NEGATIVE COVENANTS
  6.1. Liens.
  Schedule 6.1 provided Section
6.3(b)
      Section 8.1(h)
 96




---



##### 



provided
 provided
    Section 6.2
   provided
 Section 6.3(i)
   6.2. Investments.
 97




---



##### 



Schedule 6.2(b)
 Section 6.3(c)
      Schedule 6.2(k)
     Section 6.6
 98




---



##### 



6.3. Indebtedness.
  Schedule 6.3 provided
 provided
  provided
 provided
 99




---



##### 



provided
    provided Payment Blockage provided however Blockage Default Payment Blockage Period provided
further
 100




---



##### 



6.4. Mergers and Dissolutions.
 provided
 provided Sections 5.13 5.14 Sections 5.13 5.14
 provided Sections 5.13 5.14
 Section 6.5
  PHP AMERIGROUP Florida provided
 101




---



##### 



6.5. Disposition of Assets. Section 6.2 Section 6.13
  6.6. Restricted Junior Payments. provided plus provided however
 102




---



##### 



6.7. Modifications in respect of Indebtedness.
     6.8. Transactions with Affiliates. Sections 6.02 6.03 6.04 6.05 6.06 Schedule
 103




---



##### 



6.8
 6.9. Change in Nature of Business; Fiscal Year.
   6.10. Foreign Subsidiaries.
 6.11. No Further Negative Pledges. Section 6.3(g) provided Section 6.1
 104




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##### 



6.12. Ownership of Subsidiaries; Limitations on Borrower.
 Section
6.4 6.5
 Sections 6.2 6.3 6.6
 6.13. Sale and Leaseback Transactions. Section
6.3(g)
 6.14. Operating Lease Obligations
 6.15. Financial Covenants .
 Leverage Ratio
 Fiscal Quarter
    
    Leverage RatioJune 30, 2007
    
    
    3.00:1.00September 30, 2007
    
    
    2.75:1.00December 31, 2007
    
    
    2.75:1.00March 31, 2008
    
    
    2.50:1.00June 30, 2008
    
    
    2.50:1.00September 30, 2008
    
    
    2.50:1.00
 105




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##### 



Fiscal
Quarter
    
    Leverage RatioDecember 31, 2008
    
    
    2.25:1.00March 31, 2009
    
    
    2.25:1.00June 30, 2009
    
    
    2.25:1.00September 30, 2009 and each Fiscal Quarter thereafter
    
    
    2.00:1.00
 Interest Coverage Ratio
 Statutory Net Worth Ratio
   provided
 provided
 provided
 106




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##### 



Certain Calculations Subject Transaction
  6.16. Restrictions on Subsidiary Distributions. Schedule 6.16
 6.17. Disposal of Subsidiary Interests. Section
6.5 Section 6.1(a)
 107




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6.18. Amendments or Waivers of with respect to Convertible Senior Notes Indebtedness,
Subordinated Indebtedness and other Material Indebtedness provided however
 SECTION 7. GUARANTY
 7.1. Guaranty of the Obligations
.. Guaranteed
Obligations
 7.2. Contribution by Guarantors. Contributing Guarantors Funding Guarantor Fair Share
 108




---



##### 



Fair Share Contribution
Amount provided Fair
Share Contribution Amount Aggregate Payments
 7.3. Payment by Guarantors.
 7.4. Liability of Guarantors Absolute.
 109




---



##### 



110




---



##### 



7.5. Waivers by Guarantors.
 111




---



##### 



7.6. Guarantors Rights of Subrogation, Contribution, etc.
 112




---



##### 



7.7. Subordination of Other Obligations. Obligee Guarantor
 7.8. Continuing Guaranty.
 7.9. Authority of Guarantors or Borrower.
 7.10. Financial Condition of Borrower.
 7.11. Bankruptcy, etc.
 113




---



##### 



7.12. Discharge of Guaranty Upon Sale of Guarantor.
 SECTION 8. EVENTS OF DEFAULT
 8.1. Events of Default.
 Non-Payment
 Specific Covenants
 Section 5.3 5.4 5.12 5.13 5.14 Section 6
 114




---



##### 



Section 5.1 5.2
 Other Defaults (a) (b)
 Representations and Warranties
 Cross-Default
 Insolvency Proceedings, Etc
 115




---



##### 



Inability to Pay Debts; Attachment
 Judgments
 ERISA
 Guaranties Section 6.4 6.5 Section 5.13 Section 5.13
 Invalidity of Credit Documents
 116




---



##### 



Change of Control; Designated Event
 HMO Event
 Exclusion Event
 Dissolution
 Criminal Indictment or Criminal Investigation
 Subordinated Provisions
 THEN
 117




---



##### 



provided
 SECTION 9. AGENTS
 9.1. Appointment of Agents.
 9.2. Powers and Duties.
 118




---



##### 



9.3. General Immunity
 No Responsibility for Certain Matters
 Exculpatory Provisions
 119




---



##### 



Delegation of Duties
 9.4. Agents Entitled to Act as Lender.
 9.5. Lenders Representations, Warranties and Acknowledgment
 120




---



##### 



9.6. Right to Indemnity
.. provided provided provided further
 9.7. Successor Administrative Agent, Collateral Agent and Swing Line Lender
 121




---



##### 



9.8. Collateral Documents and Guaranty
 Agents under Collateral Documents and Guaranty
 122




---



##### 



Right to Realize on Collateral and Enforce Guaranty
 Rights under Hedge Agreements
 SECTION 10. MISCELLANEOUS
 10.1. Notices.
 Notices Generally
 123




---



##### 



provided provided further
 Electronic Communications
 provided provided provided
  Agent Affiliates
 124




---



##### 



10.2. Expenses. provided
 10.3. Indemnity
 125




---



##### 



Indemnitee provided provided further
  10.4. Set-Off.
 126




---



##### 



10.5. Amendments and Waivers
 Requisite Lenders Consent
 Affected Lenders Consent
        Requisite Lenders Pro Rata Share; provided Requisite
Lenders Pro Rata Share
  127




---



##### 



Other Consents
 provided
  provided
  Lender Counterparty Hedge Agreement Obligations Secured Obligations
  Execution of Amendments, etc.
 128




---



##### 



10.6. Successors and Assigns; Participations
 Generally
 Register Settlement Confirmation Assignment Effective Date.
 Right to Assign provided however
   129




---



##### 



provided
 Mechanics
 Representations and Warranties of Assignee
 Effect of Assignment provided
 130




---



##### 



Participations
   provided
 131




---



##### 



provided further
 Certain Other Assignments and Participations provided provided further
 10.7. Independence of Covenants.
 10.8. Survival of Representations, Warranties and Agreements.
 10.9. No Waiver; Remedies Cumulative.
 132




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##### 



10.10. Marshalling; Payments Set Aside.
 10.11. Severability.
 10.12. Obligations Several; Independent Nature of Lenders Rights.
 10.13. Headings.
 10.14. APPLICABLE LAW THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.
 10.15. CONSENT TO JURISDICTION ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY CREDIT PARTY
ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE
BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF
NEW YORK. BY
 133




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##### 



EXECUTING AND DELIVERING THIS AGREEMENT, EACH CREDIT PARTY, FOR ITSELF AND IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE
NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;
(C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE CREDIT PARTY AT ITS
ADDRESS
PROVIDED IN ACCORDANCE WITH SECTION 10.1; (D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C)
ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY
RESPECT; AND (E) AGREES THAT AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY OTHER
JURISDICTION.
 10.16. WAIVER OF JURY TRIAL EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY
OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE
TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.
 134




---



##### 



10.17. Confidentiality. provided provided
 10.18. Usury Savings Clause.
 135




---



##### 



10.19. Counterparts
..
 10.20. Effectiveness.
 10.21. Patriot Act.
 10.22. Electronic Execution of Assignments.
 10.23. Release of PHP. Section 6.4(f) Section 7
  136




---



##### 



IN WITNESS WHEREOF
 AMERIGROUP CORPORATIONBy:Name:Title:PHP HOLDINGS, INC.By:Name:Title:




---



##### 



GOLDMAN SACHS CREDIT PARTNERS L.P.,
as Syndication Agent and a LenderBy:Authorized Signatory




---



##### 



WACHOVIA BANK, NATIONAL ASSOCIATION,
as Administrative Agent, Collateral Agent, Swing 
Line Lender, Issuing Bank and a LenderBy:Name:Title:




---



##### 



APPENDIX A-1
TO CREDIT AND GUARANTY AGREEMENT
 Credit-Linked Commitments
 ProLender
    
    Credit-Linked Commitment
    
    Rata ShareGoldman Sachs Credit Partners L.P.
    
    $
    210,790,683.30
    
    
    
    60.0
    %Wachovia Bank, National Association
    
    $
    140,527,122.20
    
    
    
    40.0
    %Total
    
    $
    351,317,805.50
    
    
    
    100
    %




---



##### 



APPENDIX A-2
TO CREDIT AND GUARANTY AGREEMENT
 Revolving Commitments
 Lender
    
    Revolving Commitment
    
    Pro Rata ShareGoldman Sachs Credit Partners L.P.
    
    $
    25,000,000.00
    
    
    
    50.0
    %Wachovia Bank, National
Association
    
    $
    25,000,000.00
    
    
    
    50.0
    %Total
    
    $
    50,000,000.00
    
    
    
    100
    %




---



##### 



APPENDIX B
TO CREDIT AND GUARANTY AGREEMENT
 Notice Addresses




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---



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---



#####