Document:

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                                                                    Exhibit 10.1

                            STOCK PURCHASE AGREEMENT

                           DATED AS OF AUGUST 2, 2002

                                      AMONG

                         UNIVERSITY HEALTH PLANS, INC.,

               UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY

                                       AND

                               CENTENE CORPORATION

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                                TABLE OF CONTENTS

                                                                           PAGE
                                                                           ----
1.    Purchase and Sale of the Shares.....................................   1
      1.1.  Purchase of the Shares from the Stockholder...................   1
      1.2.  Purchase Price for the Shares.................................   1
      1.3.  Closing.......................................................   2

2.    Representations of the Stockholder..................................   2
      2.1.  Organization..................................................   3
      2.2.  Authorization.................................................   3
      2.3.  Non-Contravention.............................................   3
      2.4.  Title to Shares...............................................   3
      2.5.  Transfer of Shares............................................   3

3.    Representations of the Stockholder and the Company..................   4
      3.1.  Organization..................................................   4
      3.2.  Capitalization................................................   4
      3.3.  Subsidiaries..................................................   4
      3.4.  Authorization.................................................   4
      3.5.  Non-Contravention.............................................   5
      3.6.  Financial Statements..........................................   5
      3.7.  Absence of Undisclosed Liabilities............................   6
      3.8.  Litigation....................................................   7
      3.9.  Insurance.....................................................   7
      3.10. Assets........................................................   7
      3.11. Intellectual Property.........................................   8
      3.12. Real Estate...................................................   9
      3.13. Tax Matters...................................................   9
      3.14. Books and Records.............................................  10
      3.15. Contracts and Commitments.....................................  10
      3.16. Compliance with Agreements and Laws...........................  12
      3.17. Employee Relations............................................  13
      3.18. Employee Benefit Plans........................................  14
      3.19. Absence of Certain Changes or Events..........................  15
      3.20. Providers.....................................................  17
      3.21. Members.......................................................  17
      3.22. Commercial Business...........................................  17
      3.23. Indebtedness to and from Officers, Directors and the
             Stockholder..................................................  17
      3.24. Banking Facilities............................................  18
      3.25. Powers of Attorney and Suretyships............................  18
      3.26. Conflicts of Interest.........................................  18
      3.27. Brokers.......................................................  18

4.    Representations of the Buyer........................................  18
      4.1.  Organization and Authority....................................  18
      4.2.  Authorization.................................................  19
      4.3.  Non-Contravention.............................................  19
      4.4.  Investment Representation.....................................  19

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5.    Pre-Closing Covenants...............................................  20
      5.1.  Access to Management, Properties and Records..................  20
      5.2.  Confidentiality...............................................  20
      5.3.  Public Announcements..........................................  21
      5.4.  Communications with Members and Providers.....................  21
      5.5.  Conduct of Business...........................................  21
      5.6.  Absence of Material Changes...................................  21
      5.7.  Delivery of Interim Financial Statements......................  23
      5.8.  Compliance with Laws and Regulations..........................  24
      5.9.  Provider Agreements...........................................  25
      5.10. Employees.....................................................  25
      5.11. Disposition of Commercial Business............................  25
      5.12. Exclusivity...................................................  26
      5.13. Taxes.........................................................  26
      5.14. Notices of Breaches...........................................  26
      5.15. Notices and Consents..........................................  26
      5.16. Closing Efforts...............................................  27
      5.17. Expenses......................................................  27

6.    Conditions to Obligations of the Buyer..............................  28
      6.1.  Representations, Warranties and Covenants.....................  28
      6.2.  Investor Rights Agreement.....................................  28
      6.3.  Escrow Agreement..............................................  28
      6.4.  Amended Organizational Documents..............................  28
      6.5.  Provider Agreements...........................................  28
      6.6.  Employment Arrangements.......................................  28
      6.7.  Disposition of Commercial Business............................  29
      6.8.  IBNR Certification............................................  29
      6.9.  Medicaid Contract.............................................  29
      6.10. Consents......................................................  29
      6.11. Indebtedness..................................................  29
      6.12. Adverse Proceedings...........................................  29
      6.13. Opinions of Counsel...........................................  29
      6.14. Management Contract...........................................  29
      6.15. Closing Deliveries............................................  30

7.    Conditions to Obligations of the Stockholder and the Company........  30
      7.1.  Representations, Warranties and Covenants.....................  30
      7.2.  Investor Rights Agreement.....................................  31
      7.3.  Escrow Agreement..............................................  31
      7.4.  Fairness Opinion..............................................  31
      7.5.  Consents......................................................  31
      7.6.  Adverse Proceedings...........................................  31
      7.7.  Opinion of Counsel............................................  31
      7.8.  Closing Deliveries............................................  31

8.    Price Reduction.....................................................  31
      8.1.  Damages.......................................................  32
      8.2.  Reduction Claims..............................................  33
      8.3.  Survival of Representations and Warranties....................  36
      8.4.  Limitations...................................................  36

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9.    Post-Closing Agreements.............................................  37
      9.1.  Proprietary Information.......................................  37
      9.2.  Further Assurances............................................  38
      9.3.  No Solicitation or Hiring of Former Employees.................  38
      9.4.  Non-Competition Agreement.....................................  38

10.   Termination of Agreement............................................  38
      10.1. Termination by Lapse of Time..................................  38
      10.2. Termination by Agreement of the Parties.......................  39
      10.3. Termination by Reason of Breach...............................  39
      10.4. Availability of Remedies at Law...............................  39

11.   General 39
      11.1. Notices.......................................................  39
      11.2. Successors and Assigns........................................  40
      11.3. Entire Agreement; Amendments..................................  40
      11.4. Severability..................................................  40
      11.5. Investigation of the Parties..................................  40
      11.6. Submission to Jurisdiction....................................  40
      11.7. Governing Law.................................................  41
      11.8. Construction..................................................  41
      11.9. Counterparts..................................................  41

Signatures................................................................  42

EXHIBIT A.    Form of Investor Rights Agreement........................... A-1
EXHIBIT B.    Form of Escrow Agreement ................................... B-1
EXHIBIT C.    Form of Opinion of Counsel for the Stockholder ............. C-1
EXHIBIT D.    Form of Opinion of Counsel for the Company.................. D-1
EXHIBIT E.    Form of Opinion of Counsel for the Buyer.................... E-1

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      THIS STOCK PURCHASE AGREEMENT dated as of August 2, 2002 (this
"Agreement") is entered into among University Health Plans, Inc., a New Jersey
corporation with its principal office at 555 Broad Street, 17th Floor, Newark,
New Jersey 07102 (the "Company"), University of Medicine and Dentistry of New
Jersey, a body corporate politic of the State of New Jersey created pursuant to
N.J.S.A. 18A:64G-1, et seq. with its principal office at 65 Bergen Street,
Newark, New Jersey 07107 (the "Stockholder"), and Centene Corporation, a
Delaware corporation with its principal office at 7711 Carondelet Avenue, Suite
800, St. Louis, Missouri 63105 (the "Buyer").

                              PRELIMINARY STATEMENT

      A. The Stockholder owns 20 shares of the common stock, without par value
("Common Stock"), of the Company, which shares represent all of the issued and
outstanding shares of capital stock of the Company.

      B. The Buyer desires to purchase, and the Stockholder desires to sell, 16
shares of Common Stock (the "Shares") for the consideration set forth below,
subject to the terms and conditions of this Agreement.

      C. In connection with the purchase and sale of the Shares, the Buyer and
the Stockholder wish to enter into an Investor Rights Agreement providing for,
among other things, the exchange, on the third anniversary of the Closing Date
(as defined in Subsection 1.3), of the other four shares of Common Stock held by
the Stockholder for shares of common stock of Centene, all as contemplated by
this Agreement, including the Investor Rights Agreement to be entered into as of
the Closing Date in the form attached hereto as EXHIBIT A (the "Investor Rights
Agreement").

      NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereby agree as follows:

      1.   PURCHASE AND SALE OF THE SHARES

           1.1. PURCHASE OF THE SHARES FROM THE STOCKHOLDER. Subject to and
      upon the terms and conditions of this Agreement, at the closing of the
      transactions contemplated by this Agreement (the "Closing"), the
      Stockholder shall sell, transfer, convey, assign and deliver the Shares
      to the Buyer, and the Buyer shall purchase, acquire and accept the Shares
      from the Stockholder. At the Closing the Stockholder shall deliver to the
      Buyer a certificate or certificates evidencing the Shares, duly endorsed
      in blank or with a stock power duly executed by the Stockholder.

            1.2.     PURCHASE PRICE FOR THE SHARES

                     (a) The aggregate purchase price to be paid by the Buyer
            for all of the Shares (the "Purchase Price") shall be equal to 80%
            of the product of (i) $250.00 and (ii) the number of enrolled risk
            members of the Company as reflected in the final enrollment data
            provided by the New Jersey Division of Medical Assistance and
            Health Services with respect to the Closing Date, subject to
            adjustment pursuant to Subsections 6.1 and 6.8 (together, the
            "Closing Adjustments") and subject to reduction after the Closing
            Date pursuant to Section 8.

                     (b) The Purchase Price shall be payable in cash, by wire
            transfers of immediately available funds, as follows:

                         (i)  on the Closing Date (or, if the Closing Date is
                              not a business day, then the next succeeding
                              business day), the Buyer shall deliver to Fleet
                              Bank, N.A., as escrow agent (the "Escrow Agent"),
                              the sum of $5,500,000 to be held in an

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                              interest-bearing escrow account (the "Escrow
                              Account") pursuant to the terms of an Escrow
                              Agreement in the form attached hereto as EXHIBIT B
                              (the "Escrow Agreement"), as a reserve to satisfy
                              any and all or part of any reduction in the
                              Purchase Price pursuant to Section 8; and

                         (ii) on the second business day following the date on
                              which the New Jersey Division of Medical
                              Assistance and Health Services provides the data
                              referred to in paragraph (a) of this Subsection
                              1.2 (but no earlier than the date of the payment
                              pursuant to the preceding clause (i)), (A) the
                              Buyer shall deliver to the Stockholder an amount
                              equal to the Purchase Price less (1) $5,500,000
                              and (2) the amount of the Closing Adjustments or
                              (B) in the event the Closing  Adjustments exceed
                              an amount equal to the Purchase Price less
                              $5,500,000, then the Stockholder shall deliver to
                              the Buyer an amount equal to (1) the Closing
                              Adjustments  less (2) the  Purchase  Price less
                              $5,500,000.

                     (c)      In the event of an adjustment in the Purchase
            Price as the result of one or both Closing Adjustments, the parties
            agree that it is in their mutual best interests for the Buyer to
            contribute to the Company an amount in cash equal to the aggregate
            amount of the Closing Adjustments. The Buyer hereby agrees that (i)
            to the extent a Closing Adjustment results in the payment of an
            amount in cash to the Buyer by the Stockholder, the Stockholder
            shall make such payment to the Company, on behalf of the Buyer and
            in satisfaction of the Buyer's obligations under this paragraph (c)
            with respect to such amount and (ii) to the extent a Closing
            Adjustment results in a reduction in the Purchase Price but not a
            payment of cash to the Buyer, the Buyer shall deliver to the Company
            the amount of such Closing Adjustment in cash on the date of the
            payment pursuant to paragraph (b) of this Subsection 1.2.

                     (d)      As a condition to the Closing, the parties shall
            agree upon, for purposes of calculating the amount of any Closing
            Adjustment pursuant to Subsection 6.1 and for purposes of
            determining certain Damages under Section 8, a procedure for the
            preparation, by no later than the date of the payment pursuant to
            clause (b)(ii) of this Subsection 1.2, of a mutually agreed upon
            balance sheet, including the amount of premium receivable and other
            receivable (the "Closing Receivables"), and related calculation of
            net worth of the Company as of the Closing. The balance sheet
            referred to in the preceding sentence shall be prepared in
            accordance with the actuarial and accounting practices prescribed or
            permitted by the State of New Jersey Department of Banking and
            Insurance and, for the purposes of preparing such balance sheet, no
            premium receivable with respect to a state supplemental delivery
            payment shall be booked until an outcome (i.e., a live birth, still
            birth or miscarriage occurring at the thirteenth week or greater of
            gestation) has occurred.

            1.3. CLOSING. The Closing shall take place as of 12:01 a.m.,
      Eastern time, on the first calendar day of the calendar month that
      immediately follows the calendar month in which the conditions set forth
      in Sections 6 and 7 (other than delivery of items to be delivered at the
      Closing and other than satisfaction of those conditions that by their
      nature are to be satisfied at the Closing, it being understood that the
      occurrence of the Closing shall remain subject to the delivery of such
      items and the satisfaction or waiver of such conditions at the Closing)
      are first satisfied or waived, or on such later date as may be mutually
      agreed upon in writing by the parties. The date of the Closing, as so
      determined, is referred to herein as the "Closing Date."

      2. REPRESENTATIONS OF THE STOCKHOLDER. The Stockholder represents and
warrants to the Buyer that the statements contained in this Section 2 are true
and correct, except as expressly set forth in the disclosure schedule of the
Stockholder and the Company being delivered to the Buyer contemporaneously

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with the execution and delivery of this Agreement (the "Disclosure Schedule").
The Stockholder confirms that the information in the Disclosure Schedule
relating to exceptions to the statements contained in this Section 2 is arranged
in sections corresponding to the numbered subsections and lettered paragraphs of
this Section 2, and that the disclosure in any section of the Disclosure
Schedule shall qualify only such specifically enumerated subsection or paragraph
of this Agreement and any other paragraph of this Agreement to which an explicit
and clear cross-reference has been made.

            2.1. ORGANIZATION. The Stockholder is a body corporate politic of
      the State of New Jersey created pursuant to N.J.S.A. 18A:64G-1, et
      seq. duly organized, validly existing and in good standing under the laws
      of the State of New Jersey, and has all requisite power and authority
      (corporate and other) to own its properties, to execute and deliver this
      Agreement and the agreements contemplated herein, and to transfer, convey
      and sell the Shares to the Buyer at the Closing. Certified copies of the
      charter documents of the Stockholder, as amended to date, have been
      previously delivered to the Buyer, are complete and correct, and no
      amendments have been made thereto or have been authorized since the date
      thereof.

            2.2. AUTHORIZATION. The execution and delivery by the Stockholder
      of this Agreement and the agreements provided for herein, and the
      consummation by the Stockholder of all transactions contemplated
      hereunder and thereunder by the Stockholder, have been duly authorized
      by all requisite corporate or other action. This Agreement has been
      duly executed by the Stockholder. This Agreement and all other
      agreements and obligations entered into and undertaken in connection
      with the transactions contemplated hereby to which the Stockholder is
      a party constitute the valid and binding obligations of the
      Stockholder, enforceable against the Stockholder in accordance with
      their respective terms, except as such enforcement may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium,
      fraudulent conveyance or similar laws relating to or affecting the
      rights of creditors generally or by general equitable principles (the
      "Enforceability Exception").

            2.3. NON-CONTRAVENTION. Subject to compliance with the applicable
      requirements of the Securities Act of 1933, as amended (the "Securities
      Act") and any applicable state securities laws, neither the execution and
      delivery by the Stockholder of this Agreement or the agreements provided
      for herein, nor the consummation by the Stockholder of the transactions
      contemplated hereby or thereby, will (a) conflict with or violate the
      provisions of any law, rule or regulation applicable to the Stockholder or
      any of its properties or assets, (b) conflict with or violate the
      provisions of the charter documents of the Stockholder, (c) require on the
      part of the Stockholder any notice to or filing with, or permit,
      authorization, consent or approval of, any court, arbitrator,
      administrative agency or commission or other governmental or regulatory
      authority, body, instrumentality or agency, domestic or foreign (each, a
      "Governmental Entity"), (d) violate any judgment, decree, order or award
      of any Governmental Entity by which the Stockholder or any of its
      properties are bound, or (e) conflict with, result in breach of,
      constitute (with or without due notice or lapse of time or both) a default
      under, result in the acceleration of obligations under, create in any
      party any right to terminate, modify or cancel, or require any notice,
      consent or waiver under, any contract or instrument to which the
      Stockholder is a party or by which it is bound or to which any of its
      assets are subject.

            2.4. TITLE TO SHARES. The Stockholder has good, valid and marketable
      title to the Shares, free and clear of any and all covenants, conditions,
      restrictions, voting trust arrangements, liens, charges, encumbrances,
      options and adverse claims or rights whatsoever.

            2.5. TRANSFER OF SHARES. Upon consummation of the purchase
      contemplated hereby, the Buyer will acquire from the Stockholder good
      and marketable title to the Shares, free and clear of all

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      covenants, conditions, restrictions, voting trust arrangements, liens,
      charges, encumbrances, options and adverse claims or rights whatsoever,
      subject to the provisions of the Investor Rights Agreement.

      3. REPRESENTATIONS OF THE STOCKHOLDER AND THE COMPANY. The Stockholder and
the Company represent and warrant to the Buyer that the statements contained in
this Section 3 are true and correct, except as expressly set forth in the
Disclosure Schedule. As set forth in Section 3 of the Disclosure Schedule,
certain of the statements in this Section 3 are, to the extent made by the
Stockholder, made only to the knowledge of the Stockholder; those statements are
not so qualified with respect to the Company. The Stockholder and the Company
confirm that the information in the Disclosure Schedule relating to exceptions
to the statements contained in this Section 3 is arranged in sections
corresponding to the numbered subsections and lettered paragraphs of this
Section 3, and that the disclosure in any section of the Disclosure Schedule
shall qualify only such specifically enumerated subsection or paragraph of this
Agreement and any other paragraph of this Agreement to which an explicit and
clear cross-reference has been made. As used herein, "Company MAE" shall mean
any material adverse change, event, circumstance or development with respect to,
or material adverse effect on, (i) the business, assets, liabilities,
capitalization, prospects, condition (financial or other), or results of
operations of the Company or (ii) the ability of the Company to operate its
Medicaid business after the Closing.

            3.1. ORGANIZATION. The Company is a corporation duly organized,
      validly existing and in good standing under the laws of the State of New
      Jersey, and has all requisite power and authority (corporate and other) to
      own its properties, to carry on its business as now being conducted, to
      execute and deliver this Agreement and the agreements contemplated herein,
      and to consummate the transactions contemplated hereby and thereby. The
      Company is not required, based on its ownership of property or the
      character of its business, to be qualified to do business in any
      jurisdiction other than the State of New Jersey. Certified copies of the
      Certificate of Incorporation and Bylaws of the Company, as amended to
      date, have been previously delivered to the Buyer, are complete and
      correct, and no amendments have been made thereto or have been authorized
      since the date thereof.

            3.2. CAPITALIZATION. The Company's authorized capital stock consists
      of 100 shares of Common Stock, without par value, of which 20 shares are
      issued and outstanding and held of record and beneficially by the
      Stockholder. All such issued and outstanding shares of Common Stock have
      been duly and validly issued and are fully paid and non-assessable. There
      are no outstanding (a) options, warrants or other rights to purchase from
      the Company any capital stock of the Company, (b) securities convertible
      into or exchangeable for shares of such stock, or (c) other commitments of
      any kind for the issuance of additional shares of capital stock or
      options, warrants or other securities of the Company. No shares of Common
      Stock are held in the treasury of the Company.

            3.3. SUBSIDIARIES. The Company does not presently own or control,
      directly or indirectly, any interest in any other corporation, association
      or other business entity. The Company is not a participant in any joint
      venture, partnership or similar arrangement.

            3.4. AUTHORIZATION. Execution and delivery by the Company of this
      Agreement and the agreements provided for herein, and the consummation by
      the Company of all transactions contemplated hereunder and thereunder by
      the Company, have been duly authorized by all requisite corporate action.
      This Agreement has been duly executed by the Company. This Agreement and
      all other agreements and obligations entered into and undertaken in
      connection with the transactions contemplated hereby to which the Company
      is a party constitute the valid and binding obligations of the Company,
      enforceable against the Company in accordance with their respective terms,
      subject to the Enforceability Exception.

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            3.5. NON-CONTRAVENTION. Neither the execution and delivery by the
      Company of this Agreement or the agreements provided for herein, nor the
      consummation by the Company of the transactions contemplated hereby and
      thereby, will (a) conflict with or violate the provisions of any law, rule
      or regulation applicable to the Company or any of its properties or
      assets, except for any conflicts or violations that, in the aggregate, do
      not and will not have a Company MAE, (b) conflict with or violate the
      provisions of the Certificate of Incorporation or Bylaws of the Company,
      (c) require on the part of the Company any notice to or filing with, or
      any permit, authorization, consent or approval of, any Governmental
      Entity, (d) violate any judgment, decree, order or award of any
      Governmental Entity by which the Company or its properties are bound, or
      (e) conflict with, result in breach of, constitute (with or without due
      notice or lapse of time or both) a default under, result in the
      acceleration of obligations under, create in any party any right to
      terminate, modify or cancel, or require any notice, consent or waiver
      under, any contract or instrument to which the Company is a party or by
      which it is bound or to which any of its assets are subject, except for
      (i) any conflict, breach, default, acceleration, termination, modification
      or cancellation which, individually or in the aggregate, would not have a
      Company MAE and would not adversely affect the consummation of the
      transactions contemplated hereby or (ii) any notice, consent or waiver the
      absence of which, individually or in the aggregate, would not have a
      Company MAE and would not adversely affect the consummation of the
      transactions contemplated hereby.

            3.6.  FINANCIAL STATEMENTS

                  (a) The Stockholder or the Company has previously  delivered
            to the Buyer (i) the audited statutory statement of admitted
            assets, liabilities and surplus of the Company as of, and the
            audited statutory statements of income, changes in surplus, and
            cash flows of the Company for the fiscal year ended, December 31,
            2001 (collectively, the "Audited Statutory Financial Statements")
            and (ii) the unaudited statutory statement of admitted assets,
            liabilities and surplus of the Company as of, and the unaudited
            statutory statements of income, changes in surplus, and cash
            flows of the Company for the quarter ended, March 31, 2002
            (collectively with the Audited Statutory Financial Statements,
            the "Statutory Financial Statements"). The Audited Statutory
            Financial Statements have been certified without qualification by
            PricewaterhouseCoopers LLC, the Company's independent public
            accountants. The Statutory Financial Statements have been
            prepared in accordance with accounting practices prescribed or
            permitted by the State of New Jersey Department of Banking and
            Insurance applied on a basis consistent throughout the periods
            covered, fairly present, in all material respects, the admitted
            assets, liabilities and surplus as of the respective dates
            thereof and the results of operations and cash flows of the
            Company for the periods referred to therein, on the basis of the
            accounting described in the respective notes thereto, and are
            consistent with the books and records of the Company.

                  (b) The Stockholder or the Company has also previously
            delivered to the Buyer (i) the unaudited balance sheet of the
            Company as of, and the unaudited statements of operations and
            cash flows of the Company for the fiscal years ended, December
            31, 2001 and 2000 and (ii) the unaudited balance sheet of the
            Company as of May 30, 2002, the unaudited balance sheet of the
            Company as of June 30, 2002 (the "Current Balance Sheet") and the
            unaudited statements of operations and cash flows of the Company
            for the five-month period ended May 30, 2002 and six-month period
            ended June 30, 2002 (the financial statements in clauses (i) and
            (ii) of this paragraph (b) collectively being referred to as the
            "Financial Statements"). The Financial Statements have been
            prepared in accordance with United States generally accepted
            accounting principles applied on a basis consistent throughout
            the periods covered thereby, fairly present the financial
            condition, results of operations and cash flows of the Company as
            of the respective dates thereof and for the periods referred to
            therein, and are consistent with

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            the books and records of the Company, provided that the Financial
            Statements referred to in clause (ii) above are subject to normal
            recurring year-end adjustments (which will not be material) and do
            not include all footnotes required by such generally accepted
            accounting principles.

                  (c) The Stockholder or the Company has also previously
            delivered to the Buyer the unaudited Medicaid financial reports by
            rate cell grouping of the Company and for the six-month period ended
            June 30, 2002 (the "Medicaid Financial Reports"). The Medicaid
            Financial Reports have been prepared on a basis consistent
            throughout the period covered thereby, fairly present the results of
            operations of the Medicaid business of the Company for the six-month
            period ended June 30, 2002, and are consistent with the books and
            records of the Company.

                  (d) The reserves recorded in the accounting records of the
            Company for medical benefits, losses, claims and expenses incurred
            in connection with the Medicaid and commercial businesses of the
            Company and any other reserves (i) were prepared in accordance with
            the actuarial and accounting practices prescribed or permitted by
            the State of New Jersey Department of Banking and Insurance, (ii)
            make good and sufficient provisions for all insurance obligations of
            the Company, (iii) to the best knowledge of the Company, meet the
            requirements of any law, rule or regulation applicable to such
            reserves and the requirements of the Permits (as defined in
            paragraph (a) of Subsection 3.16), and (iv) are computed on the
            basis of assumptions consistent with those used in computing the
            corresponding reserves in the prior fiscal year. All payments to
            and/or settlements with providers of any medical services have been
            accounted for in the appropriate medical expense reserve account (by
            category of medical expense) and have been reflected as a medical
            expense of the Company.

                  (e) The Company has provided to Buyer true and correct
            documentation, electronic and otherwise, of data representing all
            medical claims (including all medical payments and/or settlements)
            of the Company's business as of June 30, 2002. The Company has also
            provided documentation, electronic and otherwise, that supports the
            medical claims data provided. The medical claims data provided to
            Buyer reflect any changes to the Company's business since its
            inception that would materially affect total medical costs. All paid
            medical claims and settlements of the Company's Medicaid business
            since January 1, 2001 have been properly reflected as medical
            expenses. All unpaid medical claims and settlements of the Company's
            Medicaid business since January 1, 2001 have been properly reflected
            as losses incurred but not reported for purposes of computing the
            Company's claims payable and claims adjustment expenses, except to
            the extent that any such unpaid medical claims and settlements do
            not exceed $50,000 in amount, in the aggregate, in either the year
            ended December 31, 2001 or the period subsequent to January 1, 2002.

                  (f) The amounts shown as accrued for current and deferred
            income and other taxes in the Current Balance Sheet are sufficient
            for the payment of all accrued and unpaid federal, state and local
            income taxes, interest, penalties, assessments or deficiencies
            applicable to the Company, whether disputed or not, for the six
            months ended June 30, 2002 and all periods prior thereto.

            3.7. ABSENCE OF UNDISCLOSED LIABILITIES. The Company has no
      liability or obligation, secured or unsecured, whether accrued, absolute,
      contingent, unasserted or otherwise, that is material to the condition
      (financial or otherwise) of the assets, properties, business or prospects
      of the Company, except as and to the extent (a) any such liability or
      obligation is reflected and reserved against in the Current Balance Sheet
      or (b) any such liability or obligation, other than a liability or
      obligation

                                     - 6 -
<PAGE>

      arising under a Provider Agreement (as defined in clause (a)(ii) of
      Subsection 3.15), either (i) was incurred in the ordinary course of
      business after June 30, 2002 or (ii) did not exceed $25,000 in amount, in
      the aggregate, in either the year ended December 31, 2001 or the period
      subsequent to January 1, 2002.

            3.8. LITIGATION. There is no action, suit, proceeding or
      investigation to which the Company is a party (either as a plaintiff or
      defendant) pending. To the knowledge of the Stockholder and the Company,
      (a) no such action, suit, proceeding or investigation is threatened before
      any Governmental Entity and (b) there is no basis for any such action,
      suit or proceeding. There is no action, suit, proceeding or investigation
      of which the Stockholder or the Company is aware pending or threatened
      before any Governmental Entity that challenges the validity or propriety
      of this Agreement or any action to be taken by the Stockholder or the
      Company in connection with this Agreement. Neither the Company nor any
      officer, director or employee of the Company has been permanently or
      temporarily enjoined by any order, judgment or decree of any Governmental
      Entity from engaging in or continuing any conduct or practice in
      connection with the business, assets or properties of the Company. There
      is not in existence on the date hereof any order, judgment or decree of
      any Governmental Entity that has been properly served or of which the
      Company or the Stockholder otherwise is aware enjoining or requiring the
      Company or the Stockholder to take any action of any kind with respect to
      the business, assets or properties of the Company.

            3.9.  INSURANCE. Section 3.9 of the Disclosure Schedule sets forth
      a true, correct and complete list of all fire, theft, casualty, general
      liability, workers compensation, business interruption, environmental
      impairment, product liability, automobile and other insurance policies
      maintained by the Company and of all life insurance policies maintained on
      the lives of any of its employees, specifying the type of coverage, the
      amount of coverage, the premium, the insurer and the expiration date of
      each such policy (collectively, the "Insurance Policies") and all claims
      made under such Insurance Policies since January 1, 2001. The Stockholder
      and the Company have previously delivered to the Buyer true, correct and
      complete copies of all Insurance Policies. The Insurance Policies are in
      full force and effect and are in amounts of a nature that are adequate and
      customary for the Company's business. All premiums due on the Insurance
      Policies or renewals thereof have been paid, and there is no default by
      the Company under the Insurance Policies. The Company has not received any
      notice or other communication from any issuer of the Insurance Policies
      since January 1, 2001 canceling or materially amending any of the
      Insurance Policies, materially increasing any deductibles or retained
      amounts thereunder, or materially increasing the annual or other premiums
      payable thereunder, and, to the knowledge of the Stockholder and the
      Company, no such cancellation, amendment or increase of deductibles,
      retainages or premiums is threatened. The Company has no outstanding
      claims or disputes with any insurance carrier regarding claims,
      settlements or premiums, and the Company has not failed to give any notice
      or present any claim under any Insurance Policy in due and timely fashion.
      There are no outstanding requirements or recommendations by any issuer of
      the Insurance Policies or by any Board of Fire Underwriters or other
      similar body exercising similar functions or by any governmental authority
      exercising similar functions that require or recommend any changes in the
      conduct of the business of, or any repairs or other work to be done on or
      with respect to any of the properties or assets of, the Company.

             3.10. ASSETS. The Company has good and marketable title to all of
      the assets (tangible or intangible) purported to be owned by the Company
      and relating to, or used in, its business, free and clear of all liens,
      leases, encumbrances, claims under bailment and storage agreements,
      equities, conditional sales contracts, security interests, charges and
      restrictions, except for liens, if any, for personal property taxes not
      due. The Company owns or leases all tangible assets sufficient for the
      conduct of its business as presently conducted and as presently proposed
      to be conducted. Each such tangible asset is free from material defects,
      has been maintained in accordance with normal

                                     - 7 -
<PAGE>

      industry practice, is in good operating condition and repair (subject to
      normal wear and tear) and is suitable for the purposes for which it
      presently is used. Each item of equipment and other asset that the Company
      has possession of pursuant to a lease agreement or other contractual
      arrangement and relating to, or used in, its business is in such condition
      that, upon its return to its lessor or owner under the applicable lease or
      contract, the obligations of the Company to such lessor owner will have
      been discharged in full.

            3.11.  INTELLECTUAL PROPERTY

                   (a) Section 3.11 of the Disclosure Schedule sets forth: (i) a
            true, correct and complete list and, where appropriate, a
            description of, all items of Intellectual Property owned by, or
            used or useful in connection with the Medicaid business of, the
            Company, including trade secrets, know-how, any other
            confidential information of the Company, trade names, trademarks,
            trade name and trademark registrations, copyrights and copyright
            registrations, and applications for any of the foregoing but
            excluding (A) rights under the Medicaid Contract and (B)
            off-the-shelf software programs licensed by the Company pursuant
            shrink wrap and similar licenses (the "Intellectual Property");
            and (ii) a true, correct and complete list of all licenses or
            similar agreements or arrangements to which the Company is a
            party, either as licensee or licensor, with respect to the
            Intellectual Property. The Company is the sole and exclusive
            owner of all right, title and interest in and to the Intellectual
            Property and all designs, permits, labels and packages used on or
            in connection therewith, free and clear of all liens, security
            interests, charges, encumbrances, equities or other adverse
            claims. The Company has the right and authority to use, and to
            continue to use after the Closing, the Intellectual Property in
            connection with the conduct of its business in the manner
            presently conducted, and such use or continuing use does not and
            will not conflict with, infringe upon or violate any rights of
            any other person, corporation or entity.

                   (b) The Company has not received any notice of, nor has any
            knowledge of any basis for, a pleading or threatened claim,
            interference action or other judicial or adversarial proceeding
            against the Company that any of the operations, activities,
            products, services or publications of the Company infringes or
            will infringe any patent, trademark, trade name, copyright, trade
            secret or other property right of a third party, or that it is
            illegally or otherwise using the trade secrets, formulae or
            property rights of others. There are no outstanding, nor to the
            knowledge of the Stockholder or the Company, any threatened,
            disputes or other disagreements with respect to any licenses or
            similar agreements or arrangements described in Section 3.11 of
            the Disclosure Schedule or with respect to infringement by a
            third party of any of the Intellectual Property. Neither the
            Company nor the Stockholder has any knowledge that any third
            party is infringing, or will threaten to infringe, upon or
            otherwise violate any of the Intellectual Property in which the
            Company has ownership rights.

                   (c) The Intellectual Property owned or licensed by the
            Company is sufficient to conduct the Company's business as presently
            conducted. The Company has taken all steps reasonably necessary to
            protect its right, title and interest in and to the Intellectual
            Property and the continued use of the Intellectual Property.

                   (d) No officer, director, stockholder or employee of the
            Company or the Stockholder, nor any spouse, child or other relative
            or affiliate thereof, owns directly or indirectly, in whole or in
            part, any of the Intellectual Property.

                                     - 8 -
<PAGE>

            3.12.  REAL ESTATE

                   (a) Section 3.12 of the Disclosure Schedule sets forth the
            identity of the sole lease of real property to which the
            Company is a party (the "Lease"). The Stockholder and the Company
            have previously delivered to the Buyer a true, correct and
            complete copy of the Lease and all amendments, modifications and
            supplemental agreements thereto. The Lease is in full force and
            effect, is valid, binding and enforceable against the Company in
            accordance with its terms (subject to the Enforceability
            Exception), and has not been modified or amended since the date
            of delivery to the Buyer. Neither the Company nor the landlord
            has delivered written notice to the other claiming that such
            party is in default thereunder and that such default remains
            uncured. To the knowledge of the Stockholder and the Company, no
            event has occurred that would constitute a breach of or default
            in the performance of any covenant, agreement or condition
            contained in the Lease, nor has any event occurred that with the
            passage of time or the giving of notice or both would constitute
            such a breach or material default. The Company is not obligated
            to pay any leasing or brokerage commission relating to the Lease
            and, will not have any obligation to pay any leasing or brokerage
            commission upon the renewal of the Lease. No construction,
            alteration or other leasehold improvement work with respect to
            the Lease remains to be paid for or to be performed by the
            Company.

                   (b) The Company does not own any real property.

            3.13.  TAX MATTERS

                   (a) Within the times and in the manner prescribed by law,
            the Company has filed all federal, state and local tax
            returns and all tax returns for foreign countries, provinces and
            other governing bodies having jurisdiction to levy taxes upon it
            that are required to be filed. The Company has paid all taxes,
            interest, penalties, assessments and deficiencies that have
            become due or that have been claimed to be due, including income,
            franchise, real estate, sales and withholding taxes. All tax
            returns filed by the Company for the taxable years ending
            December 31, 1995 through December 31, 2001 constitute complete
            and accurate representations of the tax liabilities of the
            Company for such years and accurately set forth all items (to the
            extent required to be included or reflected in such returns)
            relevant to its future tax liabilities, including the tax bases
            of its properties and assets. The Company has not waived or
            extended any applicable statute of limitations relating to the
            assessment of federal, state, local or foreign taxes. No
            examinations of the federal, state, local or foreign tax returns
            of the Company is currently in progress nor threatened, and no
            deficiencies have been asserted or assessed against the Company
            as a result of any audit by the Internal Revenue Service or any
            state or local taxing authority, and no such deficiency has been
            proposed or threatened. The Company has never been (i) a member
            of any consolidated group for federal or state income tax
            purposes or (ii) a party to any tax sharing agreement or other
            similar arrangements.

                   (b) The Company has not filed a consent pursuant to Section
            341(f) of the Internal Revenue Code of 1954, as amended (the
            "Code") relating to collapsible corporations nor has any such
            corporation agreed to have Section 341(f)(2) of the Code apply to
            any disposition of a subsection (f) asset (as such term is
            defined in Section 341(f)(4) of the Code). The Company has never
            participated in or cooperated with an international boycott,
            within the meaning of Section 999 of the Code, nor has any such
            corporation had operations that are or may hereafter become
            reportable under Section 999 of the Code. The Company does not
            have any transaction subject to Treasury Regulation 1.1502-13 in
            connection with deferred intercompany transactions. There are no
            plans, arrangements, contracts or other agreements covering any
            current or former employees of the Company that, considered
            collectively, will,

                                     - 9 -
<PAGE>

            or could reasonably be expected to, give rise directly or indirectly
            to the payment of any amount that would not be deductible pursuant
            to Section 280G or Section 162(m) of the Code.

                   (c) Section 3.13 of the Disclosure Schedule sets forth those
            taxable years for which the tax returns of the Company have
            been reviewed or audited by applicable federal, state, local and
            foreign taxing authorities and those tax years for which said tax
            returns have received clearances or other indications of approval
            from applicable federal, state, local and foreign taxing
            authorities. No issue or issues have been raised in connection
            with any prior or pending review or audit of said federal, state,
            local or foreign tax returns that the Stockholder reasonably
            believes may be expected to be raised in the future by such
            taxing authorities in connection with the audit or review of the
            tax returns of the Company.

            3.14. BOOKS AND RECORDS. The general ledgers and books of account
      of the Company are in all material respects complete and correct and have
      been maintained in accordance with good business practice and in
      accordance with all applicable procedures required by laws and
      regulations.

            3.15.  CONTRACTS AND COMMITMENTS

                   (a) Section 3.15 of the Disclosure Schedule contains a true,
            complete and correct list and description of the following contracts
            and agreements, whether written or oral:

                       (i)    the agreement between the Company and the New
                              Jersey Department of Human Services, Division of
                              Medical Assistance and Health Services, including
                              all amendments, modifications and supplements
                              thereto (as so amended, modified and supplemented,
                              the "Medicaid Contract");

                       (ii)   all loan agreements, indentures, mortgages and
                              guaranties to which the Company is a party or by
                              which the Company or any of its property is bound;

                       (iii)  all pledges, conditional sale or title retention
                              agreements, security agreements, equipment
                              obligations, personal property leases and lease
                              purchase agreements to which the Company is a
                              party or by which the Company or any of its
                              property is bound;

                       (iv)   all contracts, agreements, commitments or other
                              understandings or arrangements to which the
                              Company is a party or by which the Company or any
                              of its property is bound that (A) involve payments
                              or receipts by the Company of more than $50,000 in
                              the case of any single contract, agreement,
                              commitment, understanding or arrangement under
                              which full performance (including payment) has not
                              been rendered by all parties thereto or (B) may
                              materially adversely affect the condition
                              (financial or otherwise) or the properties,
                              assets, business or prospects of the Company;

                       (v)    all collective bargaining agreements, employment
                              and consulting agreements, offer letters,
                              executive compensation plans, bonus plans,
                              deferred compensation agreements, pension plans,
                              retirement plans, severance agreements or
                              policies, change in control agreements, employee
                              stock option or stock purchase plans and group
                              life, health and accident insurance and other
                              employee benefit plans, agreements, arrangements
                              or commitments to which the Company is a party or
                              by which the Company or any of its property is
                              bound;

                                     - 10 -
<PAGE>

                       (vi)   all contracts, agreements or other understandings
                              or arrangements between the Company and the
                              Stockholder or their respective affiliates;

                       (vii)  all leases, whether operating, capital or
                              otherwise, under which the Company is lessor or
                              lessee;

                       (viii) all contracts, agreements or other arrangements
                              imposing a non-competition or non-solicitation
                              obligation on the Company or any of its employees;
                              and

                       (ix)   any other material agreements or contracts entered
                              into by the Company.

            As used herein, the term "Contracts" refers collectively to the
            contracts and agreements described in the preceding clauses (i)
            through (ix), and also includes all contracts and agreements
            (collectively, the "Provider Agreements") with physicians, hospitals
            and other providers of health care services that have contracted
            directly or indirectly with the Company (collectively, "Providers")
            to provide covered health care services to Medicaid beneficiaries
            (collectively, the "Members") enrolled under the Medicaid Contract;

                   (b) Each Contract is a valid and binding agreement of the
            Company, enforceable against the Company in accordance with
            its terms (subject to the Enforceability Exception), and the
            Company has no knowledge that any Contract is not a valid and
            binding agreement of the other parties thereto.

                   (c) Each of the Provider Agreements and, subject to receipt
            of the approval of the transactions contemplated hereby by
            the New Jersey Department of Human Services, Division of Medical
            Assistance and Health Services, the Medicaid Contract will
            continue to be a valid and binding obligation of each party
            thereto, enforceable against each such party in accordance with
            its terms, subject in each case to the Enforceability Exception.

                   (d) The Company has fulfilled all material obligations
            required pursuant to the Contracts to have been performed by
            the Company, as the case may be, on its part prior to the date
            hereof, and the Company, as the case may be, has no reason to
            believe that it will not be able to fulfill, when due, all of its
            obligations under the Contracts that remain to be performed after
            the date hereof.

                   (e) The Company is not in breach of or default under any
            Contract, and no event has occurred that with the passage of
            time or giving of notice or both would constitute such a default,
            result in a loss of rights or result in the creation of any lien,
            charge or encumbrance, thereunder or pursuant thereto.

                   (f) There is no existing breach or default by any other
            party to any Contract, and no event has occurred that with
            the passage of time or giving of notice or both would constitute
            a default by such other party, result in a loss of rights or
            result in the creation of any lien, charge or encumbrance
            thereunder or pursuant thereto.

                   (g) There are not, and since January 1, 2000 have not been,
            any claims of a non-routine nature relating to the Company
            by the Providers in excess of (i) $5,000 individually or (ii)
            $100,000 in the aggregate in the year ended December 31, 2000,
            the year ended December 31, 2001 or the period subsequent to
            January 1, 2002.

                   (h) The Company has no written or oral contracts to perform
            services that are expected to be performed  at, or to result in, a
            loss.

                                     - 11 -
<PAGE>

                   (i) The Company and the Stockholder have previously delivered
            to the Buyer true, correct and complete copies of all Contracts.

            3.16.  COMPLIANCE WITH AGREEMENTS AND LAWS

                   (a) The Company has all requisite certificates of authority,
            licenses, permits, consents, orders, approvals and certificates from
            all Governmental Entities necessary to conduct its Medicaid business
            and own and operate the assets relating to its Medicaid business
            (collectively, the "Medicaid Permits"). Section 3.16 of the
            Disclosure Schedule sets forth a true, correct and complete list of
            all such Medicaid Permits, copies of which have previously been
            delivered by the Company or the Stockholder to the Buyer. The
            Company is not in violation of any federal law, rule, license,
            decree, regulation or ordinance (including laws, rules, licenses,
            decrees, regulations or ordinances of applicable Governmental
            Entities) relating to its Medicaid business or the properties
            relating to its Medicaid business. The Company is not in violation
            of any state, local or foreign law, rule, license, decree,
            regulation or ordinance (including laws, rules, licenses, decrees,
            regulations or ordinances of applicable Governmental Entities)
            relating to its Medicaid business or the properties relating to its
            Medicaid business, except for any violation which, individually or
            in the aggregate, would not have a Company MAE and would not
            adversely affect the consummation of the transactions contemplated
            hereby.

                   (b) The business of the Company as conducted since its
            inception has not violated, and on the date hereof does not violate,
            in any material respect, any federal, state, local or foreign laws,
            regulations or orders (including any of the foregoing relating to
            insurance, employment discrimination, occupational safety,
            environmental protection, hazardous waste, conservation, or corrupt
            practices, the enforcement of which would have a material adverse
            effect on the results of operations, condition (financial or
            otherwise), assets, properties business or prospects of the Company.
            The Company has not had notice or communication from any federal,
            state or local governmental or regulatory authority or otherwise
            since its inception of any such violation or noncompliance. The
            Company has filed all statements and reports, including any required
            plan of corrective action in connection with a failure to maintain
            the minimum required statutory surplus, with insurance regulatory
            authority required by the law, regulations, licensing requirements
            and orders administered or issued by such regulatory authorities. No
            event has occurred with respect to any of the Medicaid Permits that
            would have or has had a material adverse effect on the Medicaid
            Contract. The Company has not, and none of its executive officers,
            directors or employees (in their respective capacities as such) has,
            engaged in any activity constituting fraud or abuse under the laws
            relating to health care or insurance. Section 3.16 of the Disclosure
            Schedule sets forth all examinations of the Company related to its
            business conducted by any governmental entity and identifies by date
            any correspondence between such a governmental entity and regarding
            sanctions, conclusions made and/or corrective action required or
            suggested based on such examination.

                   (c) The Company maintains the minimum statutory surplus
            required in accordance with the written regulations of the State of
            New Jersey Department of Banking and Insurance and under the terms
            of the Medicaid Contract. The Company has no unfunded balance with
            respect to the minimum insolvency deposits required in accordance
            with the written regulations of the State of New Jersey Department
            of Banking and Insurance and under the terms of the Medicaid
            Contract. The Company has no unfunded balance with respect to the
            minimum administrative deposits required in accordance with the
            written regulations of the State of New Jersey Department of Banking
            and Insurance and under the terms of the Medicaid Contract.

                                     - 12 -
<PAGE>

                   (d) The Company is not in violation of any federal, state,
            county or municipal authority law, ruling, order, decree,
            regulation, permit, or other environmental or hazardous waste
            requirement applicable to the Company relating to health, safety,
            pollution, hazardous waste, environmental or other similar matters,
            that has not been entirely corrected and that has or will have a
            material adverse impact on the transactions contemplated herein. The
            Company has not received notice from any federal, state, county or
            municipal authority alleging any such violation.

                   (e) For purposes of this Subsection 3.16, "hazardous waste"
            means "hazardous waste" as defined in the Resource Conservation and
            Recovery Act, as amended, 42 U.S.C.ss.6921 et seq., and the
            regulations adopted pursuant thereto.

            3.17.  EMPLOYEE RELATIONS

                   (a) The Company is in compliance with all federal, state and
            municipal laws respecting employment and employment practices, terms
            and conditions of employment, and wages and hours, and is not
            engaged in any unfair labor practice, and there are no arrears in
            the payment of wages or social security taxes.

                   (b) None of the employees of the Company is represented by
            any labor union, and the Company is not a party to any collective
            bargaining agreement. There is no unfair labor practice complaint
            against the Company pending before the National Labor Relations
            Board or any state or local agency. There is no pending labor strike
            or other material labor trouble affecting the Company (including any
            organizational drive). There is no labor grievance pending against
            the Company. There is no pending representation question respecting
            the employees of the Company.

                   (c) The Company has no continuing obligation for health,
            life, medical insurance or other similar fringe benefits to any
            former employee of the Company.

                   (d) Section 3.17 of the Disclosure Schedule sets forth a
            true, correct and complete list of all employees of the Company,
            including the job descriptions and salary or wage rates of each
            employee, showing separately for each such person the maximum
            amounts paid or payable as salary and bonus payments for the fiscal
            years ending December 31, 2001 and December 31, 2002, as well as the
            amount of any accrued and unused vacation and other accrued and
            unpaid benefits earned by such person. Section 3.17 of the
            Disclosure Schedule also sets forth a true and complete listing of
            the names of all employees to whom the Company has made severance or
            similar payments since January 1, 2001 with respect to the
            termination of the employment of those individuals, together with
            the amount of such payments and a statement as to whether such
            payments were made pursuant to a pre-existing contract, an agreement
            entered into in connection with such termination, a corporate
            policy, or otherwise. The Company has fewer than 100 employees, and
            neither the Stockholder nor any other entity may be deemed an
            employer of any of the Company's employees.

                   (e) There have been no complaints made by any Company
            employee to any Governmental Entity of any violation of any law by
            the Company any officer, director, employee or agent of the Company,
            and neither the Stockholder nor the Company is aware of any basis
            for such a complaint. There have been no complaints of harassment or
            discrimination made by or against any employee of the Company, and
            neither the Stockholder nor the Company is aware of any basis for
            such a complaint.

                                     - 13 -
<PAGE>

            3.18.  EMPLOYEE BENEFIT PLANS

                   (a) Section 3.18 of the Disclosure Schedule contains a true,
            correct and complete list of all pension, benefit, profit sharing,
            retirement, deferred compensation, welfare, insurance, disability,
            bonus, vacation pay, severance pay and other similar plans, programs
            and agreements, whether reduced to writing or not, other than any
            "multiemployer plan" as such term is defined in Section 4001(a)(3)
            of ERISA, relating to the Company's employees, or maintained at any
            time since June 30, 1999 by the Company or by any other member (as
            used in this Subsection 3.18, a "Plan Affiliate") of any controlled
            group of corporations, group of trades or businesses under common
            control, or affiliated service group (as defined for purposes of
            Section 414(b), (c) and (m), respectively, of the Internal Revenue
            Code of 1986, as amended (the "Code")) (the "Employee Plans"), and
            the Company has no obligations, contingent or otherwise, past or
            present, under applicable law or the terms of any Employee Plan.

                   (b) With respect to all Employee Plans, the Company and its
            Plan Affiliates are in compliance with the requirements prescribed
            by any and all statutes, orders or governmental rules or regulations
            currently in effect, including ERISA and the Code, applicable to
            such Employee Plans, including all reporting, notice and disclosure
            requirements. The Company and its Plan Affiliates have in all
            respects performed all obligations required to be performed by them
            under, and is not in violation in any respect of, and there has been
            no default or violation by any other party with respect to, any of
            the Employee Plans. Neither the Company nor any Plan Affiliate has
            failed to pay any amounts due and owing as required by the terms of
            any Employee Plan.

                   (c) There is no multiemployer plan to which the Company or
            its Plan Affiliates contribute, are required to contribute, or have
            ever been required to contribute, or to which any of the employees
            are beneficiaries as a result of their employment with the Company.

                   (d) No Employee Plan provides health or life insurance
            benefits for retirees.

                   (e) The Company has previously delivered to the Buyer true,
            correct and complete copies of all Employee Plans and all
            agreements, including trust agreements and insurance contracts,
            related to such Employee Plans.

                   (f) Each Employee Plan intended to qualify under Section
            401(a) of the Code has been determined by the Internal Revenue
            Service to so qualify, and the trusts created thereunder have been
            determined to be exempt from tax under the provisions of Section
            501(a).

                   (g) Neither the Company nor any corporation or trade or
            business (whether or not incorporated) that would be treated as a
            member of the controlled group of the Company under Section
            4001(a)(14) of ERISA would be liable for any amount pursuant to
            Section 4062, 4063, 4064, 4068 or 4069 of ERISA if any of the
            Employee Plans that are subject to Title IV of ERISA were to
            terminate. All premiums or other payments required by the terms of
            any group or individual insurance policies and programs maintained
            by the Company and covering any present or former employees of the
            Company with respect to all periods up to and including the Closing
            Date have been fully paid for the length of the obligation. To the
            extent not heretofore satisfied or accrued on the Current Balance
            Sheet, the Stockholder shall be responsible for, and shall cause to
            be paid without using any of the Company's assets, any welfare
            benefits not fully covered by third-party insurance policies or
            programs relating to claims incurred by present or former employees
            of the Company on or before the Closing Date.

                                     - 14 -
<PAGE>

                   (h) There are no threatened or pending claims, suits or other
            proceedings by present or former employees of the Company or its
            affiliates, plan participants, beneficiaries or spouses of any of
            the above, the Internal Revenue Service, the PBGC, or any other
            person or entity involving any Employee Plan including claims
            against the assets of any trust, involving any Employee Plan, or any
            rights or benefits thereunder, other than ordinary and usual claims
            for benefits by participants or beneficiaries including claims
            pursuant to domestic relations orders.

                   (i) Section 3.18 of the Disclosure Schedule specifies those
            Employee Plans that are to be continued by the Company following the
            Closing Date and those that are to be terminated. At the Buyer's
            election, the Company shall take any actions as may be necessary or
            appropriate under all applicable laws and the terms of the Employee
            Plans to establish the Buyer, or an affiliate of the Buyer, as
            having all rights and obligations with respect to any of the
            Employee Plans that are to be continued including rights with
            respect to all annuity or insurance contracts that form a part of
            any of such Employee Plans, together with all other Employee Plan
            assets. The Company shall obtain as of the Closing Date any and all
            consents from trustees required to effect any transfer of any
            trust(s) related to such assumed Employee Plans to such trustee(s)
            as may be appointed by the Buyer.

                   (j) Except as heretofore accrued on the Current Financial
            Statements, there are no liabilities with respect to any Employee
            Plan that relate to any period prior to the Closing Date, including
            any taxes, accrued vacation or sick pay (whether or not vested),
            accrued vacation, sick and personal leaves, employee policies,
            employee benefit claims or liability to the Pension Benefit Guaranty
            Corporation. Without limiting the foregoing and except as
            contemplated hereby, no employees of the Company will be entitled to
            any severance pay by reason of the consummation of the transactions
            contemplated by this Agreement, and no severance pay will have
            accrued prior to the Closing Date and will be payable to any
            employees upon any subsequent termination of their employment after
            the Closing Date.

            3.19.  ABSENCE OF CERTAIN CHANGES OR EVENTS

                   (a) Since June 30, 2002, the Company has not entered into any
            transaction that is not in the usual and ordinary course of business
            and, without limiting the generality of the foregoing, has not:

                       (i)    authorized any declaration or payment of dividends
                              by the Company, or paid any such dividends, or
                              authorized any transfer of assets of any kind
                              whatsoever by the Company to the Stockholder with
                              respect to any shares of capital stock;

                       (ii)   failed to pay any medical claim liability or
                              indebtedness when due, and all such claim
                              liabilities have been properly recorded in the
                              accounts of the Company, except for (A) any such
                              failure attributable to a claim contested by the
                              Company in good faith in the ordinary course of
                              business and (B) up to an aggregate of $25,000
                              assessed with respect to the period ending as of
                              the date hereof as penalties or interest
                              attributable to late payments by The TriZetto
                              Group, Inc., as third party administrator for the
                              Company;

                       (iii)  incurred any material obligation or liability for
                              borrowed money;

                       (iv)   discharged or satisfied any lien or encumbrance
                              or paid any obligation or liability other than
                              current liabilities reflected in the Current
                              Balance Sheet;

                                     - 15 -
<PAGE>

                       (v)    mortgaged, pledged or subjected to lien, charge
                              or other encumbrance any of their respective
                              properties or assets;

                       (vi)   sold or purchased, assigned or transferred any of
                              its tangible assets or cancelled any debts or
                              claims, except for (A) inventory sold and raw
                              materials purchased in the ordinary course of
                              business and (B) debts and claims settled with
                              Providers in the ordinary course of business and
                              consistent with clause (ii) above;

                       (vii)  made any material amendment to or termination of
                              any Contract or done any act or omitted to do any
                              act that would cause the breach of any Contract;

                       (viii) suffered any losses of personal property, whether
                              insured or uninsured, and whether or not in the
                              control of the Company in excess of $50,000 in the
                              aggregate, or waived any rights of any value;

                       (ix)   instituted, settled or agreed to settle, or
                              received notice of any, pending or threatened
                              litigation, action or proceeding before any
                              Governmental Entity;

                       (x)    made any material change in the terms, status or
                              funding condition of any Employee Plan, as defined
                              in Subsection 3.18;

                       (xi)   engaged any new employee;

                       (xii)  made, or committed to make, any changes in the
                              compensation payable to any officer, director,
                              employee or agent of the Company, or any bonus
                              payment or similar arrangements made to or with
                              any of such officers, directors, employees or
                              agents, except to the extent of any such changes
                              that are made in the ordinary course of business
                              and are (A) in an amount less than six percent of
                              the compensation payable to such individual and
                              (B) in an amount less than $25,000 in the
                              aggregate;

                       (xiii) incurred any capital expenditure in excess of
                              $15,000 in any instance or $100,000 in the
                              aggregate;

                       (xiv)  made any material alteration in the manner of
                              keeping the books, accounts or records of the
                              Company, or in the accounting practices therein
                              reflected, except as may be required by statutory
                              accounting principles, in which case the Company
                              or the Stockholder has promptly notified the Buyer
                              in writing of the nature of and reason for the
                              change; or

                        (xv)  suffered any material adverse change in the
                              consolidated statutory results of operations,
                              condition (financial or otherwise), assets,
                              liabilities (whether absolute, accrued, contingent
                              or otherwise), business or prospects of the
                              Company.

                   (b) The Company has no knowledge of any existing or
            threatened occurrence, event or development that, as far as can be
            reasonably foreseen, could have a material adverse effect on the
            business, properties, assets, condition (financial or otherwise) or
            prospects of the Company.

                   (c) The Company has conducted its Medicaid business in a
            commercially prudent manner, as a going concern and in the ordinary
            course.

                                     - 16 -
<PAGE>

            3.20. PROVIDERS. Section 3.20 of the Disclosure Schedule sets forth
     a true, correct and complete list of (a) the names and addresses of
     each of the Providers and (b) each monetary settlement or pending
     settlement that exceeds $1,000 with a provider, including a Provider, and
     that is not reflected in the claims incurred but not reported set forth in
     the data referred to in the first sentence of paragraph (e) of Subsection
     3.6. No Provider Agreement may be terminated pursuant to its terms upon
     less than 90 days' notice. The Company uses good and reasonable efforts to
     maintain good relations with all of its Providers, and the Company uses
     reasonable business efforts to cause its accounts payable and other
     payments owing to any Provider to be not more than 30 days in arrears. The
     Stockholder and the Company have provided to the Buyer a true, correct and
     complete copy of the standard weekly claims inventory report for the
     Company, prepared by The TriZetto Group, Inc.

            3.21. MEMBERS. Section 3.21 of  the Disclosure Schedule describes
     each written, pending and unresolved complaint received by the Company
     from a Member and generally describes the nature and disposition of such
     complaint.

            3.22. COMMERCIAL BUSINESS. Notwithstanding anything herein to the
     contrary:

                 (a) The Company has all requisite certificates of authority,
            licenses, permits, consents, orders, approvals and certificates from
            all Governmental Entities necessary to conduct its Commercial
            Business (as defined in Subsection 5.11) and own and operate the
            assets relating to its Commercial Business (collectively, the
            "Commercial Permits"). Section 3.22 of the Disclosure Schedule sets
            forth a true, correct and complete list of all such Commercial
            Permits, copies of which have previously be delivered by the Company
            or the Stockholder to the Buyer. The Company is not in violation of
            any federal law, rule, license, decree, regulation or ordinance
            (including laws, rules licenses, decrees, regulations or ordinances
            of applicable Governmental Entities) relating to its Commercial
            Business or the properties relating to its Commercial Business. The
            Company is not in violation of any state, local or foreign law, rule
            license, decree, regulation or ordinance (including laws, rules,
            licenses, decrees, regulations or ordinances of applicable
            Governmental Entities) relating to its Commercial Business or the
            properties relating to its Commercial Business, except for any
            violation which, individually or in the aggregate, would not have a
            Company MAE and would not adversely affect the consummation of the
            transactions contemplated hereby.

                 (b) All unpaid medical claims and settlements of the Commercial
            Business since January 1, 2001 have been properly reflected as
            losses incurred but not reported for purposes of computing the
            Company's claims payable and claims adjustment expenses, except to
            the extent that any such unpaid medical claims and settlements do
            not exceed $50,000 in amount, in the aggregate, in either the year
            ended December 31, 2001 or the period subsequent to January 1, 2002.

            3.23. INDEBTEDNESS TO AND FROM OFFICERS, DIRECTORS AND THE
      STOCKHOLDER

                  (a) The Company is not indebted, directly or indirectly, to
            any of its officers or directors, to the Stockholder or to any
            officers or directors of the Stockholder, or any affiliate of any
            such person, in any amount whatsoever other than for salaries for
            services rendered to the Company or reimbursable business expenses,
            which salaries and expenses are reflected in the Current Financial
            Statements or were incurred by the Company in the ordinary course of
            business after June 30, 2002.

                  (b) Neither the Stockholder nor any such officer, director or
            affiliate is indebted to the Company (including any amount payable
            by the Stockholder with respect to a capital

                                     - 17 -
<PAGE>

            contribution) except for advances made to employees of the Company
            in the ordinary course of business to meet reimbursable business
            expenses anticipated to be incurred by such obligor.

            3.24. BANKING  FACILITIES. Section 3.23 of the Disclosure Schedule
      sets forth a true, correct and complete list of:

                  (a)   each bank, savings and loan or similar financial
                        institution in which the Company has an account or
                        safety deposit box and the numbers of the accounts or
                        safety deposit boxes maintained by the Company thereat;
                        and

                  (b)   the names of all persons authorized to draw on each such
                        account or to have access to any such safety deposit box
                        facility, together with a description of the authority
                        (and conditions thereof, if any) of each such person
                        with respect thereto.

            3.25. POWERS OF ATTORNEY AND SURETYSHIPS. The Company has no general
      or special powers of attorney outstanding (whether as grantor or grantee
      thereof) or any obligation or liability (whether actual, accrued,
      accruing, continent or otherwise) as guarantor, surety, co-signer,
      endorser, co-maker, indemnitor or otherwise in respect of the obligation
      of any person, corporation, partnership, joint venture, association,
      organization or other entity, except as endorser or maker of checks or
      letters of credit, respectively, endorsed or made in the ordinary course
      of business.

            3.26. CONFLICTS OF INTEREST. Neither the Stockholder, any officer or
      director of the Company or the Stockholder, nor any affiliate of any of
      the foregoing, now has or within the last three years had, either
      directly or indirectly:

                  (a)   an equity or debt interest in any corporation,
                        partnership, joint venture, association, organization or
                        other person or entity that furnishes or during such
                        period furnished services to the Company, or otherwise
                        does or during such period did business with the
                        Company; or

                  (b)   a beneficial interest in any contract, commitment or
                        agreement to which the Company is or was a party or
                        under which it is or was obligated or bound or to which
                        any of its properties may be or may have been subject,
                        other than contracts, commitments or agreements between
                        the Company and such persons in their capacities as
                        employees, officers or directors of the Company.

            3.27. BROKERS. No person, firm or corporation has acted in the
      capacity of broker or finder on behalf of the Company or the Stockholder
      to bring about the negotiation of this Agreement. Thomas Weisel Partners
      LLC may provide a fairness opinion to the Board of Directors of the
      Company pursuant to Subsection 7.4, but has not undertaken any other
      activities on behalf of the Company or the Stockholder in connection with
      the negotiation of this Agreement.

      4.    REPRESENTATIONS OF THE BUYER. The Buyer represents and warrants to
the Stockholder as follows:

            4.1. ORGANIZATION AND AUTHORITY. The Buyer is a corporation duly
      organized, validly existing and in good standing under the laws of the
      State of Delaware, and has all requisite power and authority (corporate
      and other) to own its properties and to carry on its business as now being
      conducted. The Buyer has full power to execute and deliver this Agreement
      and the agreements contemplated herein, and to consummate the transactions
      contemplated hereby and thereby. Certified copies of the Certificate of
      Incorporation and the Bylaws of the Buyer, as amended to date,

                                     - 18 -
<PAGE>

      have been previously delivered to the Stockholder, are complete and
      correct, and no amendments have been made thereto or have been authorized
      since the date thereof.

            4.2.  AUTHORIZATION. The execution and delivery of this Agreement
      by the Buyer, and the agreements provided for herein, and the consummation
      by the Buyer of the transactions contemplated hereby and thereby, have
      been duly authorized by all requisite corporate action. This Agreement and
      all such other agreements and written obligations entered into and
      undertaken in connection with the transactions contemplated hereby
      constitute the valid and binding obligations of the Buyer, enforceable
      against the Buyer in accordance with their respective terms, subject in
      each case to the Enforceability Exception.

            4.3.  NON-CONTRAVENTION. Neither the execution and delivery of this
      Agreement or the agreements provided for herein, nor the consummation by
      the Buyer of the transactions contemplated hereby and thereby, will not
      (a) conflict with or violate the provisions of any law, rule or regulation
      applicable to the Buyer; (b) conflict with or violate the provisions of
      the Buyer's Certificate of Incorporation or Bylaws; (c) require on the
      part of the Buyer any notice to or filing with, or permit, authorization,
      consent or approval of, any Governmental Entity, (d) violate any judgment,
      decree, order or award of any Governmental Entity by which the Buyer or
      its properties are bound, or (e) conflict with, result in breach of,
      constitute (with or without due notice or lapse of time or both) a default
      under, result in the acceleration of obligations under, create in any
      party any right to terminate, modify or cancel, or require any notice,
      consent or waiver under, any contract or instrument to which the Buyer is
      a party or by which it is bound or to which any of its assets are subject,
      except in any such case for (i) compliance with applicable requirements of
      the Securities Act, any applicable state securities laws and the Exchange
      Act, (ii) approval of the State of New Jersey Department of Banking and
      Insurance and the New Jersey Department of Human Services, Division of
      Medical Assistance and Health Services of the transactions contemplated
      hereby, and (iii) consent of LaSalle Bank National Association, as lender
      under the bank credit facility of the Buyer.

            4.4.  INVESTMENT REPRESENTATION. The Buyer is acquiring the Shares
      from the Stockholder for the Buyer's own account for investment only and
      not with a view to, or for sale in connection with, any distribution of
      the Shares in violation of the Securities Act or any rule or regulation
      thereunder. The Buyer has no present intention of distributing or selling
      the Shares, and the Buyer has no present or contemplated agreement,
      undertaking, arrangement, obligation, indebtedness or commitment providing
      for the disposition of the Shares. The Buyer is an "accredited investor"
      within the meaning of Rule 501(a) under the Securities Act. The Buyer has
      had adequate opportunity to obtain from representatives of the Company
      such information about the Company as is necessary for the Buyer to
      evaluate the merits and risks of the Buyer's acquisition of the Shares
      pursuant to this Agreement. The Buyer acknowledges that it has received
      certain forward-looking information from the Stockholder or the Company in
      connection with this Agreement and the transactions contemplated hereby.
      The Buyer understands that neither the Company nor the Stockholder can
      guarantee that the Company actually will achieve the plans, intentions or
      expectations disclosed in such forward-looking statements and that the
      Company's actual results could differ materially from the plans,
      intentions and expectations disclosed in the forward-looking statements.
      The Buyer has sufficient expertise in business and financial matters to be
      able to evaluate the risks involved in the acquisition of the Shares
      pursuant to the Agreement and to make an informed investment decision with
      respect to such acquisition. The Buyer understands that (a) the Shares
      have not been registered under the Securities Act and are "restricted
      securities" within the meaning of Rule 144 under the Securities Act and
      (b) the Shares cannot be sold, transferred or otherwise disposed of unless
      they are subsequently registered under the Securities Act or an

                                     - 19 -
<PAGE>

      exemption from registration is then available. A legend substantially in
      the following form will be placed on the certificate or certificates
      representing the Shares:

            "The shares represented by this certificate have not been registered
            under the Securities Act of 1933, as amended, and may not be sold,
            transferred or otherwise disposed of in the absence of an effective
            registration statement under such Act or an opinion of counsel
            satisfactory to the corporation to the effect that such registration
            is not required."

      5.    PRE-CLOSING COVENANTS. From and after the date hereof and until the
Closing Date:

            5.1.  ACCESS TO MANAGEMENT, PROPERTIES AND RECORDS

                  (a)  The Stockholder and the Company shall afford the
            officers, attorneys, accountants and other authorized
            representatives of the Buyer free and full access upon reasonable
            notice and during normal business hours to all management personnel,
            offices, properties, books and records of the Company, so that the
            Buyer may have full opportunity to make such investigation as it
            shall desire to make of the management, business, properties and
            affairs of the Company, and the Buyer shall be permitted to make
            abstracts from, or copies of, all such books and records. The
            Stockholder and the Company shall furnish to the Buyer such
            financial and operating data and other information as to the
            business of the Company as the Buyer shall reasonably request.
            Without limiting the foregoing, the Stockholder and the Company
            shall furnish the Buyer with copies of drafts and executed
            documents relating to the Company's proposed sale of the
            Commercial Business as defined in Subsection 5.11.

                 (b)  The Stockholder and the Company shall authorize the
            release to the Buyer of all files pertaining to the business or
            operations of the Company held by any federal, state, county or
            local authorities, agencies or instrumentalities. The authorizations
            of the Stockholder and the Company shall specifically waive all
            previous claims of privilege or other restrictions, and in any case
            where a release by a present or former employee of the Company is
            necessary, the Stockholder and the Company shall exercise their best
            efforts to obtain such a release.

            5.2.  CONFIDENTIALITY

                  (a)  The Company and the Stockholder have furnished and will
            continue to furnish the Buyer with certain information that is
            either non-public, confidential or proprietary in nature and that
            (i) is identified in writing as being proprietary and confidential,
            (ii) is not already known to persons other than the Company, the
            Stockholder, their representatives and third parties that have
            entered into written non-disclosure agreements with the Company and
            (iii) has not been independently developed by the Buyer. All such
            information furnished to the Buyer, its directors, officers,
            employees, agents or representatives, including attorneys,
            accountants, consultants, potential lenders, investors and financial
            advisors (collectively "representatives"), by the Company, the
            Stockholder, or any of their respective representatives, and all
            analyses, compilations, data, studies or other documents prepared by
            the Buyer or its representatives containing or based in whole or in
            part on any such furnished information or reflecting the Buyer's
            review of, or interest in, the Company is hereinafter referred to as
            "Information."

                  (b)  Subject to the requirements of applicable law, the Buyer
            hereby agrees to use the Information solely in connection with the
            consummation of the transactions contemplated by this Agreement and
            to transmit the Information only to those representatives of the
            Buyer who need to know the Information.

                                     - 20 -
<PAGE>

            5.3.  PUBLIC ANNOUNCEMENTS. No disclosures shall be made to third
      parties, nor shall there be any general public pronouncements or other
      general public communications, concerning this Agreement and the purchase
      of the Shares by the Buyer without the consent of the Buyer, on one hand,
      and the Company and the Stockholder on the other, except as may be
      required by law, in which event the non-disclosing party shall be given
      an opportunity to review in advance the proposed disclosure.

            5.4.  COMMUNICATIONS WITH MEMBERS AND PROVIDERS

                  (a) Unless instructed otherwise by the Buyer in writing, the
            Company shall continue to provide managed healthcare services to
            Members throughout the service areas covered by the Medicaid
            Contract consistent with past practice.

                  (b) The Company shall be responsible for all communications
            with Members and Providers, provided that the Buyer will provide the
            Company with such assistance as may be reasonably requested by the
            Company in connection with such communications.

            5.5.  CONDUCT OF BUSINESS. The Company shall operate its Medicaid
      business diligently, in a commercially prudent manner and substantially in
      the same manner as heretofore and shall not engage in any transaction in
      respect to its Medicaid business that is either not in the ordinary course
      or not consistent with past practice, or make or institute any unusual or
      new methods of accounting or operation, except as agreed to in writing by
      the Buyer. In connection with their obligations under Subsections 6.14 and
      7.8, the Company and the Buyer shall use their Reasonable Best Efforts to
      negotiate and agree upon the form of a management agreement (the
      "Management Agreement") by no later than August 16, 2002 pursuant to which
      the Buyer shall provide certain administrative and financial services to
      the Company (such services, however, not to include actuarial, auditing,
      legal or marketing services) in exchange for the fees provided for
      therein. The fees under the Management Agreement shall consist of (a) a
      fee, payable in monthly installments, of 12 percent of the gross revenues
      of the Company per annum, (b) a fee of $1.50 per Member per month for
      provision of the Buyer's NurseWise nurse triage services and (c) the
      Buyer's customary fees for reinsurance provided by Bankers Reserve Life
      Insurance Company of Wisconsin, a wholly owned subsidiary of the Buyer.
      All of the property of the Company relating to, or used in, its Medicaid
      business shall be used, operated, repaired and maintained in a normal
      business manner consistent with past practice.

            5.6.  ABSENCE OF MATERIAL CHANGES. Except for transactions
contemplated  or  necessitated by this Agreement, the Company shall not,
without the prior written consent of the Buyer:

                  (a)   amend or modify the terms upon which any of the
                        Providers are compensated or reimbursed;

                  (b)   terminate any Provider Agreement, except for any
                        terminations in the ordinary course of business that do
                        not, in the aggregate, affect more than one percent of
                        the Members;

                  (c)   terminate or amend any Medicaid Contract;

                  (d)   fail to pay any medical claim liability or indebtedness
                        relating to the Company's Medicaid business when due or
                        improperly record such claim liabilities in the accounts
                        of the Company, except for (i) any such failure
                        attributable to a claim contested by the Company in good
                        faith in the ordinary course of business and (ii) up to
                        an aggregate of $25,000 per calendar month (or a portion
                        thereof) assessed as

                                     - 21 -
<PAGE>

                        penalties or interest attributable to late payments by
                        The TriZetto Group, Inc., as third party administrator
                        for the Company;

                  (e)   take any action to amend its Certificate of
                        Incorporation or Bylaws;

                  (f)   issue any stock, bonds or other corporate securities or
                        grant any option or issue any warrant to purchase or
                        subscribe for any of such securities or issue any
                        securities convertible into such securities;

                  (g)   incur any obligation or liability (absolute or
                        contingent), except current liabilities incurred,
                        obligations under any Provider Agreement and obligations
                        under the Contracts, or otherwise incurred in the
                        ordinary course of business up to $30,000 in the
                        aggregate;

                  (h)   declare or make any payment or distribution  to the
                        Stockholder  with respect to its stock, or purchase or
                        redeem any shares of its capital stock;

                  (i)   mortgage, pledge, or subject to any lien, charge or any
                        other encumbrance any of their respective assets or
                        properties;

                  (j)   sell, assign, or transfer any of its assets, except in
                        the ordinary course of business;

                  (k)   cancel any debts or claims, except in the ordinary
                        course of business;

                  (l)   merge or consolidate with or into any corporation or
                        other entity;

                  (m)   make, accrue or become liable for any bonus, profit
                        sharing or incentive payment, except for accruals under
                        existing plans, if any, or increase the rate of
                        compensation payable or to become payable by it to any
                        of its officers, directors or employees, other than
                        increases in the ordinary course of business consistent
                        with past practice;

                  (n)   make any election or give any consent under the Code or
                        the tax statutes of any state or other jurisdiction or
                        make any termination, revocation or cancellation of any
                        such election or any consent or compromise or settle any
                        claim for past or present tax due;

                  (o)   waive any rights of material value;

                  (p)   modify, amend, alter or terminate any of its executory
                        contracts of a material value or that are material in
                        amount;

                  (q)   take or permit any act or omission constituting a breach
                        or default under any contract, indenture or agreement by
                        which it or its properties are bound, except for any
                        acts or omissions that, in the aggregate, do not and
                        will not have a Company MAE;

                  (r)   fail to (i) preserve the possession and control of its
                        assets and business, (ii) use its best efforts, to the
                        extent commercially reasonable ("Reasonable Best
                        Efforts"), to keep in faithful service its present
                        officers and key employees, except as agreed with the
                        Buyer, (iii) preserve the goodwill of its relationships
                        with Providers, Members, regulatory bodies, agents,
                        brokers and others having business relations with it,
                        and (iv) keep and preserve its Medicaid business
                        existing on the date hereof until the Closing Date;

                                     - 22 -
<PAGE>

                  (s)   fail to operate its business and maintain its books,
                        accounts and records in the customary manner and in the
                        ordinary and regular course of business and maintain in
                        good repair its business premises, fixtures, furniture
                        and equipment;

                  (t)   enter into any lease, contract, agreement or
                        understanding, other than (i) those entered into in the
                        ordinary course of business calling for payments that in
                        the aggregate do not exceed $25,000 for each such lease,
                        contract, agreement or understanding or (ii) any
                        Provider Agreement;

                  (u)   incur any capital expenditure in excess of $15,000 in
                        an instance or $100,000 in the aggregate;

                  (v)   engage any new employee;

                  (w)   materially alter the terms, status or funding condition
                        of any Employee Plan; or

                  (x)   commit or agree to do any of the foregoing in the
                        future.

            5.7.  DELIVERY OF INTERIM FINANCIAL STATEMENTS

                  (a) As promptly as  practicable  following the last day of
            each calendar month after the date hereof until the Closing Date,
            and in any event within 20 days after the end of each such month,
            the Stockholder or the Company shall deliver to the Buyer (i) an
            unaudited balance sheet as of the end of such month, (ii) unaudited
            statements of operations and cash flows for such month and for the
            period from January 1, 2002 through the end of such month, and (iii)
            a calculation of statutory net worth requirement for the period from
            January 1, 2002 through the end of such month. Each set of unaudited
            financial statements delivered pursuant to clauses (i) and (ii)
            above shall be prepared in accordance with United States generally
            accepted accounting principles applied on a basis consistent with
            the periods covered by the Financial Statements, shall fairly
            present the financial condition, results of operations and cash
            flows of the Company as of the respective dates thereof and for the
            periods referred to therein, shall be consistent in scope and format
            with the Financial Statements as of, and for the period ended, May
            31, 2002 and shall be consistent with the books and records of the
            Company, provided that such unaudited financial statements may be
            subject to normal recurring year-end adjustments (which shall not be
            material) and need include only footnotes equivalent to those
            contained in the Financial Statements. Each calculation of statutory
            net worth requirement delivered pursuant to clause (iii) above shall
            be certified by the chief financial officer of the Company to the
            effect that such calculation has been prepared in conformity with
            accounting practices prescribed or permitted by the State of New
            Jersey Department of Banking and Insurance. No later than August 16,
            2002, the Stockholder or the Company may provide to the Buyer an
            unaudited balance sheet of the Company as of June 30, 2002, which
            balance sheet, unless consented to in writing by the Buyer (which
            consent shall not be unreasonably withheld), shall not be filed with
            the State of New Jersey Division of Medical Assistance and Health
            Services or any other Governmental Entity and shall not be used as
            the basis for the calculation of the statutory net worth requirement
            applicable to the Company as of such date. In the event the Buyer so
            consents to such balance sheet, then, beginning as of the date of
            such consent, such balance sheet shall constitute the "Current
            Balance Sheet" for purposes of this Agreement.

                  (b) As promptly as practicable following the last day of each
            calendar month after the date hereof until the Closing Date, and in
            any event at least two business days before any filing thereof with
            the State of New Jersey Department of Banking and Insurance, the
            Stockholder or

                                     - 23 -
<PAGE>

            the Company shall deliver to the Buyer a copy of any regulatory
            filing to be made with the State of New Jersey Department of Banking
            and Insurance, an unaudited statutory statement of admitted assets,
            liabilities and surplus of the Company as of the end of such month
            and unaudited statutory statements of income, changes in surplus and
            cash flows for the period from January 1, 2002 through the end of
            such month. Any such statutory financial statements shall be
            prepared in accordance with accounting practices prescribed or
            permitted by the State of New Jersey Department of Banking and
            Insurance applied on a basis consistent with the periods covered by
            the Statutory Financial Statements, fairly present, in all material
            respects, the admitted assets, liabilities and surplus as of the
            respective dates thereof and the results of operations and cash
            flows of the Company for the periods referred to therein, on the
            basis of the accounting described in the respective notes thereto,
            and are consistent with the books and records of the Company.

                  (c) As promptly as practicable following the last day of each
            calendar month after the date hereof until the Closing Date, and in
            any event at least two business days before any filing thereof with
            the State of New Jersey Division of Medical Assistance and Health
            Services, the Stockholder or the Company shall deliver to the Buyer
            a copy of the Medicaid Financial Reports and comparable financial
            reports for the Commercial Business as of the end of such month and
            for the period from July 1, 2002 through the end of such month. Any
            such financial reports shall be prepared in accordance with
            accounting practices prescribed or permitted by the State of New
            Jersey Division of Medical Assistance and Health Services applied on
            a basis consistent with the periods covered by the Medicaid
            Financial Reports, fairly present the financial condition and
            results of operations of the Medicaid business of the Company as of
            the end of such month and for the period from July 1, 2002 through
            the end of such month, and are consistent with the books and records
            of the Company.

                 (d) As promptly as practicable following the last day of each
            calendar week after the date hereof until the Closing Date, the
            Stockholder or the Company shall deliver to the Buyer a true,
            correct and complete copy of the standard weekly claims inventory
            report for the Company, prepared by The TriZetto Group, Inc.,
            summarizing those accounts payable and other payments owing by the
            Company to any Provider that were more than 30 days in arrears as of
            the last day of such calendar week, which report shall be consistent
            in form and detail with the schedule described in the last sentence
            of Subsection 3.20.

            5.8. COMPLIANCE WITH LAWS AND REGULATIONS. The Company will comply
     with all federal, state, local and foreign laws and regulations that
     are applicable to it or to the conduct of its Medicaid business, except for
     any non-compliance with state, local and foreign laws and regulations
     which, individually or in the aggregate, would not have a Company MAE and
     would not adversely affect the consummation of the transactions
     contemplated hereby. The Company will perform and comply with all
     contracts, commitments and obligations by which it is bound. The Company
     shall maintain at all times from August 15, 2002 at least the minimum (a)
     statutory surplus, (b) insolvency deposits and (c) administrative deposits,
     each as required in accordance with the written regulations of the State of
     New Jersey Department of Banking and Insurance and under the terms of the
     Medicaid Contract. Each of the Buyer, the Company and the Stockholder shall
     have the right to contact and confer with the Centers for Medicare and
     Medicaid Services, the New Jersey Department of Human Services, Division of
     Medical Assistance and Health Services, or any other regulatory authorities
     having jurisdiction over the transactions contemplated hereby, and the
     parties agree to use their Reasonable Best Efforts to comply with any laws
     or regulations applicable to the transactions contemplated hereby and to
     obtain any waivers, permits, consents, approvals or other authorizations
     from any party, including Governmental Entities, required for the
     transactions contemplated hereby.

                                     - 24 -
<PAGE>

            5.9. PROVIDER AGREEMENTS. The Stockholder and the Company shall use
      their Reasonable Best Efforts to assist the Buyer in re-negotiating
      Provider Agreements with any and all Providers identified by the Buyer
      from time to time prior to the Closing Date.

            5.10. EMPLOYEES. The Stockholder and the Company shall use their
      Reasonable Best Efforts to assist the Buyer in obtaining affirmations from
      those individuals identified under the heading "Specified Employees" in a
      letter to be delivered by the Buyer to the Stockholder and the Company, by
      no later than the earlier of August 16, 2002 and the second business day
      before the Closing Date (the "Supplemental Letter"), that such individuals
      intend to continue their employment with the Company for an indefinite
      period following the Closing Date. The Stockholder and the Company shall
      take such steps as are necessary in order to ensure that, as of the time
      immediately before the Closing, individuals identified under the heading
      "Specified Employees" in the Supplemental Letter constitute the only
      employees of the Company. To the extent any severance or other payments
      (other than for salaries earned in the ordinary course for services
      rendered prior to the Closing Date) are, under applicable statutes or
      rules, existing contracts, corporate policy or otherwise, necessary or
      are, in the opinion of the Stockholder or the Company, desirable in
      connection with the termination of the employment of one or more
      individuals, those payments shall be made prior to the Closing by (a) the
      Company up to the amount of $450,000 in the aggregate and (b) the
      Stockholder (or made by the Company and reimbursed by the Stockholder) to
      the extent those payments exceed $450,000 in the aggregate.

            5.11. DISPOSITION OF COMMERCIAL BUSINESS. The Company shall use its
      Reasonable Best Efforts to transfer and dispose of the assets and
      liabilities of the commercial line of business currently conducted by the
      Company (the "Commercial Business"), a complete list of the assets and
      liabilities of which is set forth in Section 5.11 of the Disclosure
      Schedule, prior to the Closing Date. The Company shall not, without the
      prior written consent of the Buyer, sell, convey, transfer or otherwise
      dispose of any assets other than those listed in Section 5.11 of the
      Disclosure Schedule in connection with the sale of the Commercial
      Business, except for (a) a sale of the Commercial Business in accordance
      with the terms of the letter of intent related thereto dated July 9, 2002,
      a true, complete and copy of which has been provided by the Stockholder to
      the Buyer, and (b) a sale or sales of a portion of the assets of the
      Commercial Business in the ordinary course of business. The Company or the
      Stockholder shall provide to the Buyer a copy of any agreement that the
      Company or the Stockholder proposes to enter into in connection with the
      sale of the Commercial Business, together with an estimated, pro forma
      balance sheet with respect to the Commercial Business giving effect to
      such proposed sale as of the proposed sale date, not less than five
      business days prior to the execution of any such agreement. The Company
      and the Stockholder shall provide to the Buyer such assurances as the
      Buyer shall, in its sole discretion, deem sufficient that the Company and
      the Stockholder have made provision, acceptable to the Buyer, (a) for all
      of the obligations and liabilities of the Commercial Business, including a
      guarantee (the "Guarantee") by the Stockholder of all medical claims for
      services rendered in connection with the Commercial Business prior to such
      sale, (b) against any diminution of the assets, or increase in the
      liabilities, of the Commercial Business, as such assets and liabilities
      are reflected in the unaudited balance sheet with respect to the
      Commercial Business as of June 30, 2002 previously delivered by the
      Stockholder or the Company to the Buyer, provided that no Guarantee shall
      be required pursuant to this clause (b) unless the aggregate amount of any
      such diminutions in assets and increases in liabilities exceeds $50,000,
      or (c) against any impairment of the ability of the Company to continue to
      conduct its Medicaid business consistent in all material respects with the
      conduct of such business as of the date hereof. Not less than five
      business days following the execution of the agreement for the sale of the
      Commercial Business, the Company or the Stockholder shall deliver to the
      Buyer a final balance sheet with respect to the Commercial Business as of
      the date of such closing. In connection with such transfer and disposition
      of the Commercial Business, the Company shall terminate its

                                     - 25 -
<PAGE>

      arrangements for the provision of commercial insurance to students of the
      Stockholder. In addition, the parties shall use their Reasonable Best
      Efforts to negotiate and agree upon the form of the Guarantee by no later
      than the fifth business day following the execution of the agreement for
      the sale of the Commercial Business. The Stockholder shall reimburse the
      Company for any expenses incurred by the Company after the date hereof in
      connection with the transfer and disposition of the Commercial Business,
      including the termination of such arrangements with students of the
      Stockholder, in excess of $100,000 in the aggregate.

           5.12. EXCLUSIVITY. Except in connection with the disposition of the
      Commercial Business, none of the Company, the Stockholder or their
      respective officers, directors, employees, representatives and agents
      shall, directly or indirectly, (a) initiate, solicit, encourage or
      otherwise facilitate any inquiry, proposal, offer or discussion with any
      party (other than the Buyer) concerning any merger, reorganization,
      consolidation, recapitalization, business combination, liquidation,
      dissolution, share exchange, sale of stock, sale of material assets or
      similar business transaction involving the Company, (b) furnish any
      non-public information concerning the business, properties or assets of
      the Company to any party (other than the Buyer) or (c) engage in
      discussions or negotiations with any party (other than the Buyer)
      concerning any such transaction. If the Company or the Stockholder
      receives any inquiry, proposal or offer of the nature described in the
      preceding sentence, the Company shall, within one business day after such
      receipt, notify the Buyer of such inquiry, proposal or offer, including
      the identity of the other party and the terms of such inquiry, proposal or
      offer.

           5.13. TAXES. The Company will duly and timely file all reports or
      returns required to be filed with federal, state, local and foreign
      authorities and will promptly pay or make adequate provision for all
      federal, state, local and foreign taxes, assessments and governmental
      charges levied or assessed upon it or any of its properties (unless
      contesting such in good faith and adequate provision has been made
      therefor), including any taxes, assessments and governmental charges
      relating to the period from January 1, 2002 to the Closing Date.

            5.14.   NOTICES OF BREACHES

                    (a) From the date of this Agreement until the Closing, the
            Company shall promptly deliver to the Buyer supplemental information
            concerning events or circumstances occurring subsequent to the date
            hereof which would ender any representation, warranty or statement
            in this Agreement or the Disclosure Schedule inaccurate or
            incomplete at any time after the date of this Agreement until the
            Closing. No such supplemental information shall be deemed to avoid
            or cure any misrepresentation or breach of warranty or constitute an
            amendment of any representation, warranty or statement in this
            Agreement or the Disclosure Schedule.

                    (b) From the date of this Agreement until the Closing, the
            Buyer shall promptly deliver to the Company in a manner satisfactory
            in form and substance supplemental information concerning events or
            circumstances occurring subsequent to the date hereof which would
            render any representation or warranty in this Agreement inaccurate
            or incomplete at any time after the date of this Agreement until the
            Closing. No such supplemental information shall be deemed to avoid
            or cure any misrepresentation or breach of warranty or constitute an
            amendment of any representation or warranty in this Agreement.

            5.15.   NOTICES AND CONSENTS

                    (a) The Company and the Stockholder shall use their
            Reasonable Best Efforts to obtain, at their expense, all waivers,
            permits, consents, approvals or other authorizations from
            Governmental Entities, and to effect all registrations, filings and
            notices with or to

                                     - 26-
<PAGE>

            Governmental Entities, as may be required for such parties to
            consummate the transactions contemplated by this Agreement and to
            otherwise comply with all applicable laws and regulations in
            connection with the consummation of the transactions contemplated by
            this Agreement, as are required to be listed in the Disclosure
            Schedule. The Company and the Stockholder shall use their reasonable
            best efforts to obtain, at their expense, all such waivers, consents
            or approvals from third parties other than Governmental Entities,
            and to give all such notices to third parties, as are required to be
            listed in the Disclosure Schedule.

                    (b) The Buyer shall use its Reasonable Best Efforts to
            obtain, at its expense, all waivers, permits, consents, approvals or
            other authorizations from Governmental Entities, and to effect all
            registrations, filings and notices with or to Governmental Entities,
            as may be required for it to consummate the transactions
            contemplated by this Agreement and to otherwise comply with all
            applicable laws and regulations in connection with the consummation
            of the transactions contemplated by this Agreement, as are required
            by Subsection 4.3. The Buyer shall use its Reasonable Best Efforts
            to obtain, at its expense, all such waivers, consents or approvals
            from third parties other than Governmental Entities, and to give all
            such notices to third parties, as are required pursuant to
            Subsection 4.3.

            5.16. CLOSING EFFORTS. Each of the parties shall use its Reasonable
     Best Efforts to take all actions and to do all things necessary,
     proper or advisable to consummate the transactions contemplated by this
     Agreement, including using its reasonable best efforts to ensure that (i)
     its representations and warranties remain true and correct in all material
     respects through the Closing Date and (ii) the conditions to the
     obligations of the other parties to consummate the sale of the Shares to
     the Buyer are satisfied.

            5.17.   EXPENSES

                    (a) Except as otherwise expressly provided herein, the Buyer
            will pay all fees and expenses (including legal, accounting and
            broker's fees and other costs and expenses) incurred by it in
            connection with the transactions contemplated hereby.

                    (b) Except as otherwise expressly provided herein, the
            Stockholder will pay all fees and expenses (including legal,
            accounting and broker's fees and other costs and expenses) incurred
            by it or the Company in connection with the transactions
            contemplated hereby. The Stockholder shall be responsible for
            payment of all sales or transfer taxes arising out of the conveyance
            of the Shares. The fees and expenses of Epstein Becker & Green,
            P.C., special counsel to the Company, in connection with this
            transaction shall be paid at the Closing by (i) the Company up to
            the amount of $50,000 and (ii) the Stockholder (or paid by the
            Company and reimbursed by the Stockholder) to the extent those
            payments exceed $50,000. Any transfer taxes and fees payable to any
            Governmental Entity to obtain any necessary authorizations, consents
            and approvals shall be borne equally by the Buyer and the
            Stockholder.

                    (c) In the event that legal proceedings are commenced by
            the Buyer against the Stockholder (or the Company, if the
            transactions contemplated hereby are not consummated), or by the
            Stockholder against the Buyer, in connection with this Agreement or
            the transactions contemplated hereby, the party or parties that do
            not prevail in such proceedings shall pay the reasonable attorneys'
            fees and other costs and expenses, including investigation costs,
            incurred by the prevailing party in such proceedings.

                                     - 27 -
<PAGE>

     6.  CONDITIONS TO OBLIGATIONS OF THE BUYER. The obligations of the Buyer
under this Agreement are subject to the fulfillment, at the Closing Date, of the
following conditions precedent, each of which may be waived in writing in the
sole discretion of the Buyer:

            6.1.    REPRESENTATIONS, WARRANTIES AND COVENANTS

                    (a) Except for any changes permitted  by the terms hereof or
            consented to in writing by the Buyer, the representations and
            warranties of the Stockholder and the Company (including paragraph
            (e) of Subsection 3.6 and paragraph (c) of Subsection 3.16) shall be
            true on and as of the Closing Date as though such representations
            and warranties were made on and as of such date, except to the
            extent such representations and warranties are specifically made as
            of a particular date, (in which case such representations and
            warranties shall be true and correct as of such date), provided that
            if paragraph (c) of Subsection 3.16 shall not be true on and as of
            the Closing Date as though such representation was made on and as of
            such date (giving effect to the statutory and contractual
            requirements in effect as of such date, including any binding
            written determination by a Governmental Entity to decrease the
            minimum balances and deposits referenced therein), the Purchase
            Price shall be reduced by the lesser of (i) $3,700,000 or (ii) the
            total amount that the Company would be required to fund in order to
            comply with such paragraph (c) of Subsection 3.16. In the event that
            the total amount contemplated by clause (ii) of the immediately
            preceding sentence exceeds $4,700,000, the Buyer, in its discretion,
            may determine not to proceed with the Closing. The Stockholder and
            the Company shall have performed and complied with all terms,
            conditions, covenants, obligations, agreements and restrictions
            required by this Agreement to be performed or complied with by each
            of them prior to or at the Closing Date.

                   (b) At the Closing, the Stockholder shall have delivered to
            the Buyer a certificate signed by the Senior Vice President,
            Administration and Finance of the Stockholder as to the
            Stockholder's compliance with paragraph (a) of this Subsection 6.1.
            At the Closing, the Company shall have delivered to the Buyer a
            certificate signed by the President and Chief Executive Officer of
            the Company as to the Company's compliance with paragraph (a) of
            this Subsection 6.1.

            6.2.     INVESTOR RIGHTS AGREEMENT. The Stockholder and the Company
      shall have entered into the Investor Rights Agreement with the Buyer.

            6.3.     ESCROW AGREEMENT. The Stockholder and the Escrow Agent
      shall have entered into the Escrow Agreement.

            6.4.     AMENDED ORGANIZATIONAL DOCUMENTS. The Bylaws of the Company
      shall have been amended and restated, effective immediately upon or
      immediately after the Closing and in a form reasonably acceptable to
      the Buyer, to the effect set forth under the heading "Amended and
      Restated Bylaws" in the Supplemental Letter.

            6.5.     PROVIDER AGREEMENTS. The Company and each of the Providers
      identified under the heading "Providers" in the Supplemental Letter shall
      have entered into agreements amending or replacing their existing Provider
      Agreements, which new agreements shall be satisfactory in form and
      substance to the Buyer.

            6.6.     EMPLOYMENT ARRANGEMENTS. On or prior to the Closing Date,
      (a) each individual listed in the Supplemental Letter under the heading
      "Employment Agreements" shall have entered into an employment agreement
      with the Company in the form agreed upon by such individual and the Buyer
      prior to the date hereof and (b) at least 70% of the individuals listed in
      the Supplemental

                                     - 28 -
<PAGE>

      Letter under the heading "Specified Employees" shall have advised the
      Buyer of their intention to continue their employment with the
      Company for an indefinite period following the Closing Date.

            6.7.     DISPOSITION OF COMMERCIAL BUSINESS. The Company shall have
      disposed of the Commercial Business and shall have delivered the Guarantee
      to the Buyer; which Guarantee shall be satisfactory to the Buyer in form
      and substance. Such disposition shall not, in the reasonable judgment of
      the Buyer, have impaired the ability of the Company to continue to conduct
      its Medicaid business consistent in all material respects with the conduct
      of such business as of the date hereof.

            6.8.     IBNR CERTIFICATION. On the Closing Date, the Buyer shall
      have received a certification of the National Healthcare Office of
      PricewaterhouseCoopers LLP confirming that all medical claims of the
      Company's Medicaid business and Commercial Business have been properly
      reflected as losses incurred but not reported for the purposes of
      computing the Company's claims payable and claims adjustment expenses,
      provided that if such Office is unable to deliver such certification, the
      Buyer, in its discretion, may determine to waive the preceding condition
      and, as consideration therefor, the Purchase Price shall be reduced by the
      amount that such Office certifies the Company has failed to properly
      reflect in claims payable and claims adjustment expenses with respect to
      its Medicaid business.

            6.9.     MEDICAID CONTRACT. The Buyer shall have received such
      assurances, as the Buyer shall, in its sole discretion, deem sufficient
      that neither the sale of the Shares as contemplated hereby nor any other
      actions contemplated hereby will materially affect any of the Company's
      rights under the Medicaid Contract.

            6.10.    CONSENTS. The Stockholder and the Company shall have
      obtained at their own expense (and shall have provided copies to the Buyer
      of) all of the waivers, permits, consents, approvals or other
      authorizations referred to in paragraph (a) Subsection 5.15 that are
      required on the part of the Company or the Stockholder, consents and
      approvals of all lenders, lessors, Governmental Entities and other third
      parties whose authorization, consent or approval is required in order for
      the Stockholder and the Company to consummate the transactions
      contemplated hereby, and for the Buyer to operate the Company's Medicaid
      business, including those set forth in Section 3.5 of the Disclosure
      Schedule.

            6.11.    INDEBTEDNESS. Any indebtedness described in paragraph (b)
      of Subsection 3.23 shall have been paid to the Company.

            6.12.    ADVERSE PROCEEDINGS. No action or proceeding by or before
      any Governmental Entity shall have been instituted or threatened by any
      governmental body or person whatsoever that shall seek to restrain,
      prohibit or invalidate the transactions contemplated by this Agreement or
      that might affect the right of the Buyer to own the Shares or to own or
      operate the business of the Company after the Closing.

            6.13.    OPINIONS OF COUNSEL. The Buyer shall have received (a) an
      opinion of counsel to the Stockholder, which counsel shall be reasonably
      acceptable to the Buyer, dated as of the Closing Date, substantially in
      the form attached hereto as EXHIBIT C and (b) an opinion of Epstein Becker
      & Green, P.C., special counsel to the Company, dated as of the Closing
      Date, in substantially the form attached hereto as EXHIBIT D.

            6.14.    MANAGEMENT AGREEMENT. The Company shall have entered into
      the Management Agreement, satisfactory to the Buyer in form and substance.

                                     - 29 -
<PAGE>

            6.15.  CLOSING  DELIVERIES. The Buyer shall have received at or
     prior to the Closing such additional documents, instruments or certificates
     as the Buyer may reasonably request including:

                   (a)  the stock certificate representing the Shares, duly
                        endorsed in accordance withSubsection 1.1 of this
                        Agreement;

                   (b)  such certificates of the Company's officers and of the
                        Stockholder's officers and such other documents
                        evidencing satisfaction of the conditions specified in
                        this Section 6 as the Buyer shall reasonably request;

                   (c)  a certificate of the Secretary of State of the State of
                        New Jersey as to the legal existence and good
                        standing (including tax) of the Company in New Jersey;

                   (d)  certificates of the Secretary of the Company and of the
                        Stockholder attesting to the incumbency of the Company's
                        officers, the authenticity of the resolutions
                        authorizing the transactions contemplated by this
                        Agreement, and the authenticity and continuing validity
                        of the charter documents delivered pursuant to
                        Subsection 3.1;

                   (e)  where required by the applicable Lease, estoppel
                        certificates from each Lessor from whom the Company
                        leases real or personal property consenting to the
                        acquisition of the Shares by the Buyer and the other
                        transactions contemplated hereby, and representing that
                        there are no outstanding claims against the Company
                        under such Lease;

                   (f)  where required by the applicable Lease, estoppel
                        certificates from each tenant to whom the Company leases
                        real property consenting to the acquisition of the
                        Shares by the Buyer and the other transactions
                        contemplated hereby, and representing that there are no
                        outstanding claims against the Company under such Lease;

                   (g)  certificates of appropriate governmental officials in
                        each state in which the Company is required to qualify
                        to do business as a foreign corporation as to the due
                        qualification and good standing (including tax) of the
                        Company in each such jurisdiction;

                   (h)  written resignations of all directors and officers of
                        the Company, other than as set forth in under the
                        heading "Continuing Directors and Officers" in the
                        Supplemental Letter; and

                   (i)  the original corporate minute books of the Company and
                        all corporate seals.

     7.     CONDITIONS TO OBLIGATIONS OF THE STOCKHOLDER AND THE COMPANY. The
obligations of the Stockholder and the Company under this Agreement are subject
to the fulfillment, at the Closing Date, of the following conditions precedent,
each of which may be waived in writing in the sole discretion of the
Stockholder:

            7.1.     REPRESENTATIONS, WARRANTIES AND COVENANTS

                     (a) The representations and warranties of the Buyer in
            this Agreement shall be true on and as of the Closing Date as though
            such representations and warranties were made on and as of such
            date, except for any changes consented to in writing by the
            Stockholder. The Buyer shall have performed and complied with all
            terms, conditions, covenants, obligations,

                                     - 30 -
<PAGE>

            agreements and restrictions required by this Agreement to be
            performed or complied with by it prior to or at the Closing Date.

                    (b) At the Closing, the Buyer shall have delivered to the
            Stockholder a certificate signed by the President and Chief
            Executive Officer of the Buyer as to the Buyer's compliance with
            paragraph (a) of this Subsection 7.1.

            7.2.    INVESTOR RIGHTS AGREEMENT. The Buyer shall have entered
     into the Investor Rights Agreement with the Stockholder and the Company.

            7.3.    ESCROW AGREEMENT. The Buyer and the Escrow Agent shall
     have entered into the Escrow Agreement with the Stockholder.

            7.4.    FAIRNESS OPINION. The Board of Directors of the Company
      shall have received, by no later than the earlier of the Closing Date and
      August 15, 2002, an opinion of Thomas Weisel Partners LLC to the effect
      that the consideration to be received by the Stockholder in connection
      with the sale of the Shares is fair to the Stockholder from a financial
      point of view.

            7.5.    CONSENTS. The Buyer shall have obtained at its own expense
      (and shall have provided copies thereof to the Company or the Stockholder)
      all of the waivers, permits, consents, approvals or other authorizations,
      and effected all of the registrations, filings and notices, referred to in
      paragraph (b) of Subsection 5.15 that are required on the part of the
      Buyer.

           7.6.     ADVERSE PROCEEDINGS. No action or proceeding by or before
      any Governmental Entity shall have been instituted or threatened by any
      governmental body or person whatsoever that shall seek to restrain,
      prohibit or invalidate the transactions contemplated by this Agreement or
      that might affect the right of the Stockholder to transfer the Shares.

           7.7.     OPINION OF COUNSEL. The Stockholder shall have received an
      opinion of Hale and Dorr LLP, counsel to the Buyer, dated as of the
      Closing Date, in substantially the form attached hereto as EXHIBIT E.

           7.8.    MANAGEMENT AGREEMENT. The Buyer shall have entered into the
      Management Agreement, satisfactory to the Stockholder and the Company in
      form and substance.

           7.9.    CLOSING DELIVERIES. The Stockholder shall have received at
      or prior to the Closing such additional documents, instruments or
      certificates as the Buyer may reasonably request, including:

                   (a) such certificates of the Buyer's officers and such other
                        documents evidencing satisfaction of the conditions
                        specified in this Section 7 as the Stockholder shall
                        reasonably request;

                   (b)  a certificate of the Secretary of State of the State of
                        Delaware as to the legal existence and good standing
                        (including tax) of the Buyer in Delaware; and

                   (c)  a certificate of the Secretary of the Buyer attesting to
                        the incumbency of the Buyer's officers, the authenticity
                        of the resolutions authorizing the transactions
                        contemplated by this Agreement, and the authenticity and
                        validity of charter documents.

     8.    PRICE REDUCTION

                                     - 31 -
<PAGE>

           8.1.   DAMAGES. After the Closing, the Stockholder shall repay
     or cause to be repaid to the Buyer, in the manner and subject to the terms
     and limitations set forth in this Section 8, a portion of the Purchase
     Price (a "Price Reduction") in the event the Buyer or the Company incurs,
     suffers or is subject to any claims, damages, losses, liabilities, costs
     and expenses (including settlement costs and any legal, accounting or
     other expenses for investigating or defending any actions or threatened
     actions) (collectively, the "Damages") in connection with each and all of
     the following:

                  (a)   all obligations or liabilities of the Company arising or
                        accruing under the Medicaid Contract or any contract
                        relating to or involving the Commercial Business to the
                        extent such obligations or liabilities arise or accrue
                        as of or prior to the time of the Closing and have not
                        been reflected as losses incurred but not reported for
                        purposes of computing the Company's claims payable and
                        claims adjustment expenses (as adjusted to give effect
                        to any reduction in the Purchase Price pursuant to
                        Subsection 6.8), including (i) any medical claims
                        incurred under any Provider Agreement for services
                        rendered to Members as of or prior to the time of the
                        Closing, (ii) any medical claims incurred under any
                        contract or agreement with a physician, hospital or
                        other healthcare service provider for services rendered
                        to members or customers of the Commercial Business as of
                        or prior to the time of the Closing, (iii) any claims of
                        Members who are hospitalized as of or prior to the time
                        of the Closing through the date of discharge of such
                        Members and (iv) any claims of members or customers of
                        the Commercial Business who are hospitalized as of or
                        prior to the time of the Closing through the date of
                        discharge of such members or customers;

                  (b)   any (i) breach, as of the date of this Agreement or as
                        of the Closing Date, of any representation or warranty
                        of the Stockholder or the Company contained in this
                        Agreement or any other agreement or instrument furnished
                        by the Stockholder or the Company to the Buyer pursuant
                        to this Agreement, (ii) write-off by the Company, prior
                        to the date that is six months after the Closing Date,
                        of any portion of the Closing Receivables in accordance
                        with the normal practice of the Buyer and its
                        subsidiaries and with generally accepted accounting
                        principles, provided that Damages shall be deemed to
                        accrue under this clause (ii) only after the date that
                        is three months after the Closing Date, or (iii) failure
                        to collect, prior to the date that is five business days
                        before the first anniversary of the Closing Date, any of
                        the Closing Receivables, other than those written-off as
                        contemplated by the preceding clause (ii);

                  (c)   any failure to perform any covenant or agreement of the
                        Stockholder or the Company contained in this Agreement
                        (including Subsections 5.10 and 5.11) or any agreement
                        or instrument furnished by the Stockholder or the
                        Company to the Buyer pursuant to this Agreement;

                  (d)   any failure of the Stockholder to have good, valid and
                        marketable title to the Shares, free and clear of any
                        and all covenants, conditions, restrictions, voting
                        trust arrangements, liens, charges, encumbrances,
                        options and adverse claims or rights whatsoever; or

                  (e)   any claim by a former stockholder of the Company, or any
                        other person or entity, seeking to assert, or based
                        upon: (i) ownership or rights to ownership of any shares
                        of stock of the Company; (ii) any rights of a
                        stockholder, including preemptive rights; (iii) any
                        rights under the Certificate of Incorporation or Bylaws
                        of the

                                     - 32 -
<PAGE>

                        Company; or (iv) any claim that his, her or its shares
                        were wrongfully repurchased by the Company.

            8.2.     REDUCTION CLAIMS

                     (a) If the Buyer is entitled, or seeks to assert rights,
            to a Price Reduction pursuant to this Section 8, it shall give
            written notification to the Stockholder of the commencement of any
            suit or proceeding by a person or entity other than a party hereto
            for which a reduction is sought (a "Third Party Action"). Such
            notification shall be given within 20 days after receipt by the
            Buyer of notice of such Third Party Action, and shall describe in
            reasonable detail (to the extent known by the Buyer) the facts
            constituting the basis for such Third Party Action and the amount of
            the claimed damages; provided, however, that no delay or failure on
            the part of the Buyer in so notifying the Stockholder shall relieve
            the Stockholder of any obligation to reduce the Purchase Price
            hereunder except to the extent of any damage or liability caused by
            or arising out of such failure. Within 20 days after delivery of
            such notification, the Stockholder may, upon written notice thereof
            to the Buyer, assume control of the defense of such Third Party
            Action with counsel reasonably satisfactory to the Buyer; provided
            that (i) the Stockholder may only assume control of such defense if
            (A) it acknowledges in writing to the Buyer that any damages, fines,
            costs or other liabilities that may be assessed against the Buyer in
            connection with such Third Party Action constitute Damages for which
            the Buyer shall be entitled to a Price Reduction pursuant to this
            Section 8 and (B) the ad damnum is less than or equal to the amount
            of Damages for which the Purchase Price is to be reduced pursuant to
            this Section 8 and (ii) the Stockholder may not assume control of
            the defense of a Third Party Action involving criminal liability or
            in which equitable relief is sought against the Buyer. If the
            Stockholder does not, or is not permitted under the terms hereof to,
            so assume control of the defense of a Third Party Action, the Buyer
            shall control such defense. The party not controlling the defense of
            the Third Party Action (the "Non-controlling Party") may participate
            in such defense at its own expense. The party controlling such
            defense (the "Controlling Party") shall keep the Non-controlling
            Party advised of the status of such Third Party Action and the
            defense thereof and shall consider in good faith recommendations
            made by the Non-controlling Party with respect thereto. The
            Non-controlling Party shall furnish the Controlling Party with such
            information as it may have with respect to such Third Party Action
            (including copies of any summons, complaint or other pleading which
            may have been served on such party and any written claim, demand,
            invoice, billing or other document evidencing or asserting the same)
            and shall otherwise cooperate with and assist the Controlling Party
            in the defense of such Third Party Action. The fees and expenses of
            counsel to the Buyer with respect to a Third Party Action shall be
            considered Damages for purposes of this Agreement if (i) the Buyer
            controls the defense of such Third Party Action pursuant to the
            terms of this paragraph (a) of Subsection 8.2 or (ii) the
            Stockholder assumes control of such defense and the Buyer reasonably
            concludes that the Stockholder and the Buyer have conflicting
            interests or different defenses available with respect to such Third
            Party Action. The Stockholder shall not agree to any settlement of,
            or the entry of any judgment arising from, any Third Party Action
            without the prior written consent of the Buyer, which shall not be
            unreasonably withheld, conditioned or delayed; provided that the
            consent of the Buyer shall not be required if the Stockholder agrees
            in writing to pay any amounts payable pursuant to such settlement or
            judgment and such settlement or judgment includes a complete release
            of the Buyer from further liability and has no other adverse effect
            on the Buyer. The Buyer shall not agree to any settlement of, or the
            entry of any judgment arising from, any such Third Party Action
            without the prior written consent of the Stockholder, which shall
            not be unreasonably withheld, conditioned or delayed.

                                     - 33 -
<PAGE>

                   (b) In order to seek a Price Reduction pursuant to this
            Section 8, the Buyer shall deliver to the Stockholder and the Escrow
            Agent written notification (a "Claim Notice") that contains (i) a
            description of the Damages incurred or reasonably expected to be
            incurred by the Buyer or the Company and the amount of such Damages
            (the "Claimed Amount"), to the extent then known, (ii) a statement
            that the Buyer is entitled to a Price Reduction pursuant to this
            Section 8 for such Damages and a reasonable explanation of the basis
            therefor, and (iii) a demand for payment in the amount of such
            Damages.

                   (c) Within 20 days after delivery of a Claim Notice (unless
            such Claim Notice is delivered pursuant to paragraph (a) of
            Subsection 8.1, in which case within two business days after
            delivery of such Claim Notice), the Stockholder shall deliver to the
            Buyer a written response (the "Response") in which the Stockholder
            shall: (i) agree that the Buyer is entitled to receive a Price
            Reduction equal to the Claimed Amount, in which case the Stockholder
            and the Buyer shall deliver to the Escrow Agent, within three days
            following the delivery of the Response, a written notice executed by
            both parties instructing the Escrow Agent to distribute the Claimed
            Amount from the Escrow Account to the Buyer or the Company, as
            contemplated by paragraph (g) of this Subsection 8.2; (ii) agree
            that the Buyer is entitled to receive a Price Reduction equal to a
            part (the "Agreed Amount"), but not all, of the Claimed Amount, in
            which case the Stockholder and the Buyer shall deliver to the Escrow
            Agent, within three days following the delivery of the Response, a
            written notice executed by both parties instructing the Escrow Agent
            to distribute the Agreed Amount from the Escrow Account to the Buyer
            or the Company, as contemplated by paragraph (g) of this Subsection
            8.2; or (iii) dispute that the Buyer is entitled to receive a Price
            Reduction for any of the Claimed Amount.

                   (d) During the 30-day period following the delivery of a
            Response that reflects a dispute by the Stockholder of its liability
            for a Price Reduction for all or a part of the Claimed Amount (a
            "Dispute"), the Stockholder and the Buyer shall use good faith
            efforts to resolve the Dispute. If the Dispute is not resolved
            within such 30-day period, the Stockholder and the Buyer shall
            discuss in good faith the submission of the Dispute to binding
            arbitration, and if the Stockholder and the Buyer agree in writing
            to submit the Dispute to such arbitration, then the provisions of
            paragraph (e) of this Subsection 8.2 shall become effective with
            respect to such Dispute. The provisions of this paragraph (d) shall
            not obligate the Stockholder and the Buyer to submit to arbitration
            or any other alternative dispute resolution procedure with respect
            to any Dispute, and in the absence of an agreement by the
            Stockholder and the Buyer to arbitrate a Dispute, such Dispute shall
            be resolved in a state or federal court sitting in the State of New
            Jersey, in accordance with Subsection 11.6. The Stockholder and the
            Buyer shall deliver to the Escrow Agent, promptly following the
            resolution of the Dispute (whether by mutual agreement, arbitration,
            judicial decision or otherwise), a written notice executed by both
            parties instructing the Escrow Agent as to the amount that shall be
            distributed to the Buyer or the Company, as contemplated by
            paragraph (g) of this Subsection 8.2 (which notice shall be
            consistent with the terms of the resolution of the Dispute).

                   (e)    If, as set forth in paragraph (d) of this Subsection
            8.2, the Buyer and the Stockholder agree to submit any Dispute to
            binding arbitration, the arbitration shall be conducted by a single
            arbitrator (the "Arbitrator") in accordance with the Commercial
            Rules in effect from time to time and the following provisions:

                          (i) In the event of any conflict between the
                   Commercial Rules in effect from time to time and the
                   provisions of this Agreement, the provisions of this
                   Agreement shall prevail and be controlling.

                                     - 34 -
<PAGE>

                          (ii) The parties shall commence the arbitration by
                   jointly filing a written submission with the Newark, New
                   Jersey office of the American Arbitration Association in
                   accordance with Commercial Rule 5 (or any successor
                   provision).

                          (iii) No depositions or other discovery shall be
                   conducted in connection with the arbitration.

                          (iv)  Not later than 30 days after the conclusion of
                   the arbitration hearing, the Arbitrator shall prepare and
                   distribute to the parties a writing setting forth the
                   arbitral award and the Arbitrator's reasons therefor. Any
                   award rendered by the Arbitrator shall be final, conclusive
                   and binding upon the parties, and judgment thereon may be
                   entered and enforced in any court of competent jurisdiction
                   (subject to Subsection 11.6), provided that the Arbitrator
                   shall have no power or authority to (x) award damages in
                   excess of the portion of the Claimed Amount that is subject
                   to such Dispute, (y) award multiple, consequential, punitive
                   or exemplary damages, or (z) grant injunctive relief,
                   specific performance or other equitable relief.

                          (v) The Arbitrator shall have no power or authority,
                   under the Commercial Rules or otherwise, to (x) modify or
                   disregard any provision of this Agreement, including the
                   provisions of paragraph (e) of this Subsection 8.3, or (y)
                   address or resolve any issue not submitted by the parties.

                          (vi) In connection with any arbitration proceeding
                   pursuant to this Agreement, each party shall bear its own
                   costs and expenses, except that the fees and costs of the
                   American Arbitration Association and the Arbitrator, the
                   costs and expenses of obtaining the facility where the
                   arbitration hearing is held, and such other costs and
                   expenses as the Arbitrator may determine to be directly
                   related to the conduct of the arbitration and appropriately
                   borne jointly by the parties (which shall not include any
                   party's attorneys' fees or costs, witness fees (if any),
                   costs of investigation and similar expenses) shall be shared
                   equally by the Buyer and the Stockholder.

                  (f) Notwithstanding the other provisions of this Subsection
            8.2, if a third party asserts (other than by means of a lawsuit)
            that the Buyer is liable to such third party for a monetary or
            other obligation that may constitute or result in Damages for which
            the Buyer may be entitled to a Price Reduction pursuant to this
            Section 8, and the Buyer reasonably determines that it has a
            valid business reason to fulfill such obligation, then (i) the
            Buyer shall be entitled to satisfy such obligation, without
            prior notice to or consent from the Stockholder, (ii) the Buyer may
            subsequently make a claim for a Price Reduction in accordance with
            the provisions of this Section 8, and (iii) the Buyer shall be
            reimbursed, in accordance with the provisions of this Section 8,
            for any such Damages for which it is entitled to a Price Reduction
            pursuant to this Section 8 (subject to the right of the Stockholder
            to dispute the Buyer's entitlement to a Price Reduction, or the
            amount for which the Buyer is entitled to a Price Reduction, under
            the terms of this Section 8).

                  (g) It is understood that, pursuant to the provisions of
            Subsection 8.1, a Price Reduction may result from Damages that are
            incurred by or attributable to the Company and that result in
            economic harm to the Buyer solely as the result of its status as a
            stockholder of the Company. In such an event, the parties agree
            that it is in their mutual best interests for the repayment of any
            such Price Reduction to be made to the Company, rather than the
            Buyer. In no event shall any reduction in the amount of any Damages
            or any Price Reduction and Damages be made to reflect the fact that
            the Buyer owns less than all of the outstanding capital stock of
            the Company.

                                     - 35 -
<PAGE>

            8.3.  SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
     representations and warranties that are covered by agreements in
     paragraphs (a) and (b) of Subsection 8.1 shall (a) survive the Closing and
     (b) shall expire one year after the Closing Date. If the Buyer delivers to
     the Stockholder, before expiration of a representation or warranty, either
     a Claim Notice based upon a breach of such representation or warranty, or a
     notice that, as a result of a legal proceeding instituted by or written
     claim made by a third party, the Buyer reasonably expects to incur Damages
     for which it is entitled to a Price Reduction under this Section 8 based
     upon a breach of such representation or warranty (an "Expected Claim
     Notice"), then the applicable representation or warranty shall survive
     until, but only for purposes of, the resolution of the matter covered by
     such notice. If the legal proceeding or written claim with respect to which
     an Expected Claim Notice has been given is definitively withdrawn or
     resolved in favor of the Buyer, the Buyer shall promptly so notify the
     Stockholder; and if the Buyer has delivered a copy of the Expected Claim
     Notice to the Escrow Agent and funds have been retained in the Escrow
     Account after the Termination Date (as defined in the Escrow Agreement)
     with respect to such Expected Claim Notice, the Stockholder and the Buyer
     shall promptly deliver to the Escrow Agent a written notice executed by
     both parties instructing the Escrow Agent to distribute such retained funds
     to the Stockholder in accordance with the terms of the Escrow Agreement.
     The rights to a Price Reduction set forth in this Section 8 shall not be
     affected by (i) any investigation conducted by or on behalf of the Buyer or
     any knowledge acquired (or capable of being acquired) by the Buyer, whether
     before or after the date of this Agreement or the Closing Date, with
     respect to the inaccuracy or noncompliance with any representation,
     warranty, covenant or obligation which is the subject of a Price Reduction
     hereunder or (ii) any waiver by the Buyer of any closing condition relating
     to the accuracy of representations and warranties or the performance of or
     compliance with agreements and covenants.

            8.4. LIMITATIONS

                 (a)  Notwithstanding anything to the contrary herein:

                      (i)     the aggregate Price Reduction for Damages under
                              this Section 8 shall not exceed the amount of
                              funds contained in the Escrow Account;

                      (ii)    no Price Reduction shall be made under this
                              Section 8 with respect to a claim pursuant to
                              clause (i) of paragraph (b) of Subsection 8.1
                              (other than a claim relating to a breach of the
                              representations and warranties set forth in
                              Subsections 2.4, 2.5 and 3.2) unless and until the
                              aggregate Damages with respect to claims pursuant
                              to clause (i) of paragraph (b) of Subsection 8.1
                              (other than as aforesaid) exceed $1,000,000;

                      (iii)   the Price Reduction for Damages under clause (iii)
                              of paragraph (b) of Subsection 8.1 shall be
                              reduced to the extent that any Closing Receivables
                              that were the subject of a Price Reduction under
                              clause (ii) of such paragraph (b) are subsequently
                              collected prior to the fifth business day
                              preceding the first anniversary of the Closing
                              Date; and

                      (iv)    the aggregate Price Reduction for Damages under
                              clauses (ii) and (iii) of paragraph (b) of
                              Subsection 8.1 (as adjusted pursuant to the
                              preceding clause (iii)) shall not exceed an amount
                              equal to 25 percent of the total Closing
                              Receivables.

      For purposes solely of determining the amount of Damages pursuant to this
      Section 8 (and not for purposes of determining the existence of a breach
      of a representation or warranty), all representations and warranties of
      the Stockholder and the Company in Sections 2 and 3 shall be

                                     - 36 -
<PAGE>

      construed as if the terms "Company MAE," "material" and variations thereof
      were omitted from such representations and warranties.

                  (b) The Escrow Agreement shall be the exclusive means for the
            Buyer to collect any Damages for which it is entitled to a Price
            Reduction under this Section 8.

                  (c) Except with respect to claims based on fraud, after the
            Closing, the rights of the Buyer under this Section 8 and the Escrow
            Agreement shall be the exclusive remedy of the Buyer with respect to
            claims against the Stockholder or the Company resulting from or
            relating to any misrepresentation, breach of warranty or failure to
            perform any covenant or agreement contained in this Agreement.

                  (d) The Stockholder shall not have any right of contribution
            against the Company with respect to any breach by the Company of any
            of its representations, warranties, covenants or agreements. The
            amount of the Price Reduction recoverable by the Buyer under this
            Section 8 with respect to a Price Reduction shall be reduced by (i)
            any proceeds received by the Buyer or the Company, with respect to
            the Damages to which the Price Reduction relates, from an insurance
            carrier and (ii) the amount of any tax savings actually realized by
            the Buyer or the Company, for the tax year in which Damages were
            incurred, which are clearly attributable to the Damages to which
            such Price Reduction relates (net of any increased tax liability
            that may result from the receipt of the indemnity payment or any
            insurance proceeds relating to such Damages).

      9.    POST-CLOSING AGREEMENTS. The Stockholder agrees that from and after
the Closing Date:

            9.1.  PROPRIETARY INFORMATION

                  (a) The Stockholder and each of its affiliates (as such term
            is defined in the Securities Act of 1933, as amended, and the rules
            and regulations promulgated thereunder) (individually, an
            "Affiliate" and collectively "Affiliates") shall hold in confidence
            and shall use their Reasonable Best Efforts to have all officers,
            directors and personnel who continue after the Closing to be
            employed by such Stockholder or any Affiliate thereof to hold in
            confidence all knowledge and information of a secret or confidential
            nature with respect to the business of the Company and not to
            disclose, publish or make use of the same without the consent of the
            Buyer, except to the extent that such information shall have become
            public knowledge other than by breach of this Agreement by the
            Stockholder.

                  (b) If (i) the employment of an officer, director or other
            employee of the Stockholder or any Affiliate thereof, to whom secret
            or confidential knowledge or information concerning the business of
            the Company has been disclosed, is terminated and (ii) such
            individual is subject to an obligation to maintain such knowledge or
            information in confidence after such termination, the Stockholder
            shall, upon request by the Buyer, take all reasonable steps at its
            expense to enforce such confidentiality obligation in the event of
            an actual or threatened breach thereof. Any legal counsel retained
            by the Stockholder in connection with any such enforcement or
            attempted enforcement shall be selected by the Stockholder, but
            shall be subject to the approval of the Buyer, which approval shall
            not be unreasonably withheld.

                  (c) The Stockholder agrees that the remedy at law for any
            breach of this Subsection 9.1 would be inadequate and that the Buyer
            shall be entitled to injunctive relief in addition to any other
            remedy it may have upon breach of any provision of this Subsection
            9.1.

                                     - 37 -
<PAGE>

            9.2.   FURTHER ASSURANCES. At any time and from time to time after
     the Closing, at the Buyer's request and without further consideration,
     the Stockholder shall promptly execute and deliver such instruments of
     sale, transfer, conveyance, assignment and confirmation, and take all such
     other action as the Buyer may reasonably request, more effectively to
     transfer, convey and assign to the Buyer, and to confirm the Buyer's title
     to, the Shares, to assist the Buyer in exercising all rights with respect
     thereto and to carry out the purpose and intent of this Agreement.

            9.3.   NO SOLICITATION OR HIRING OF FORMER EMPLOYEES. Except as
     provided by law, for a period of one year after the Closing Date,
     neither the Stockholder nor any Affiliate thereof shall (a) solicit or
     otherwise induce any individual identified under the heading "Specified
     Employees" in the Supplemental Letter to terminate his or her employment or
     with the Buyer (or the Company) or to become an employee of the Stockholder
     or and Affiliate thereof or (b) hire any individual identified under the
     heading "Specified Employees" in the Supplemental Letter.

            9.4.   NON-COMPETITION AGREEMENT

                   (a) For a period of five years after the Closing Date, the
            Stockholder shall not engage directly or indirectly in the
            ownership, management or operation of any health insurance or health
            benefit program, including any health maintenance organization,
            health care preferred provider organization or traditional indemnity
            program, offered to Medicaid beneficiaries through the State of New
            Jersey Medicaid managed care program or to beneficiaries through the
            Children's Health Insurance Program authorized under Title XXI of
            the Social Security Act, as amended, in the State of New Jersey (a
            "Competing Business"). Notwithstanding the foregoing, during such
            period the Stockholder shall be permitted to acquire, or make
            investments in, entities that constitute a Competing Business,
            provided that (i) the gross revenues of such entities' Competing
            Businesses are not material in the aggregate to Buyer, as Buyer's
            business is then conducted, and (ii) the Medicaid memberships of
            those entities' Competing Businesses in the Service Areas are not
            material in the aggregate to Buyer, as Buyer's business is then
            conducted.

                    (b) The parties hereto agree that the duration and
            geographic scope of the non-competition provision set forth in this
            Subsection 9.4 are reasonable. In the event that any court of
            competent jurisdiction determines that the duration or the
            geographic scope, or both, are unreasonable and that such provision
            is to that extent unenforceable, the parties hereto agree that the
            provision shall remain in full force and effect for the greatest
            time period and in the greatest area that would not render it
            unenforceable. The parties intend that this non-competition
            provision shall be deemed to be a series of separate covenants, one
            for each and every county of each and every state of the United
            States of America and each and every political subdivision of each
            and every country outside the United States of America where this
            provision is intended to be effective. The Stockholder agrees that
            damages are an inadequate remedy for any breach of this provision
            and that the Buyer shall, whether or not it is pursuing any
            potential remedies at law, be entitled to equitable relief in the
            form of preliminary and permanent injunctions without bond or other
            security upon any actual or threatened breach of this
            non-competition provision.

     10.    TERMINATION OF AGREEMENT

            10.1.  TERMINATION BY LAPSE OF TIME. This Agreement shall terminate
     at 5:00 p.m., Eastern Time, on January 1, 2003, if the transactions
     contemplated hereby have not been consummated, unless such date is
     extended by the written consent of the Company, the Buyer and the
     Stockholder.

                                     - 38 -
<PAGE>

            10.2. TERMINATION BY AGREEMENT OF THE PARTIES. This Agreement may be
     terminated by the mutual written agreement of the parties hereto. In
     the event of such termination by agreement, the Buyer shall have no further
     obligation or liability to the Stockholder or the Company under this
     Agreement, and the Stockholder shall have no further obligation or
     liability to the Buyer under this Agreement.

            10.3. TERMINATION BY REASON OF BREACH. This Agreement may be
     terminated by the Stockholder, if at any time prior to the Closing
     there shall occur a breach of any of the representations, warranties or
     covenants of the Buyer or the failure by the Buyer to perform any condition
     or obligation hereunder, and may be terminated by the Buyer, if at any time
     prior to the Closing there shall occur a breach of any of the
     representations, warranties or covenants of the Stockholder or the Company
     or the failure of the Stockholder or the Company to perform any condition
     or obligation hereunder. In addition, the Stockholder may terminate this
     Agreement on or before August 16, 2002, in the event that Thomas Weisel
     Partners LLC advises the Company that it will be unable to deliver the
     opinion contemplated by Subsection 7.4.

            10.4. AVAILABILITY OF REMEDIES AT LAW. In the event this Agreement
     is terminated by the Buyer or the Stockholder pursuant to the provisions
     of this Section 10, the parties hereto shall have available to them all
     remedies afforded to them by applicable law.

     11.    GENERAL

            11.1. NOTICES. All notices, requests, demands, claims, and other
     communications hereunder shall be in writing. Any notice, request,
     demand, claim or other communication hereunder shall be deemed duly
     delivered four business days after it is sent by registered or certified
     mail, return receipt requested, postage prepaid, or one business day after
     it is sent for next business day delivery via a reputable nationwide
     overnight courier service, in each case to the intended recipient as set
     forth below:

                To the Company:             University Health Plans, Inc.
                                            555 Broad Street, 17th Floor
                                            Newark, New Jersey 07102
                                            Attention: President

                To the Buyer:               Centene Corporation
                                            7711 Carondelet Avenue, Suite 800
                                            St. Louis, Missouri  63801
                                            Attention:  President and Chief
                                             Executive Officer

                      With a copy to:       Hale and Dorr LLP
                                            60 State Street
                                            Boston, Massachusetts  02109
                                            Attention:  Mark L. Johnson

                To the Stockholder:         University of Medicine and
                                             Dentistry of New Jersey
                                            65 Bergen Street
                                            Newark, New Jersey 07107
                                            Attention:  Senior Vice President,
                                              Administration and Finance

                      With a copy to:       Epstein Becker & Green, P.C.
                                            1227 25th Street, NW, Suite 700

                                     - 39 -
<PAGE>

                                            Washington, DC 20037-1175
                                            Attention: Robert D. Reif

     Any party may give any notice, request, demand, claim or other
     communication hereunder using any other means (including personal
     delivery, expedited courier, messenger service, telecopy, telex, ordinary
     mail or electronic mail), but no such notice, request, demand, claim or
     other communication shall be deemed to have been duly given unless and
     until it actually is received by the party for whom it is intended. Any
     party may change the address to which notices, requests, demands, claims,
     and other communications hereunder are to be delivered by giving the other
     Parties notice in the manner herein set forth.

           11.2.   SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
     and inure to the benefit of the parties hereto and their respective
     successors and assigns, except that the Buyer, on the one hand, and the
     Stockholder and the Company, on the other hand, may not assign their
     respective obligations hereunder without the prior written consent of the
     other party; provided, however, that the Buyer may assign this Agreement,
     and its rights and obligations hereunder, to a wholly owned subsidiary of
     the Buyer. Any assignment in contravention of this provision shall be void.
     No assignment shall release the Buyer, the Stockholder or the Company from
     any obligation or liability under this Agreement.

           11.3.   ENTIRE AGREEMENT; AMENDMENTS

                   (a) This Agreement, the Disclosure Schedules, all Exhibits
           hereto, and all agreements and instruments to be delivered by the
           parties pursuant hereto represent the entire understanding and
           agreement between the parties hereto (including the Supplemental
           Letter) with respect to the subject matter hereof and supersede all
           prior oral and written and all contemporaneous oral negotiations,
           commitments and understandings between such parties. The Disclosure
           Schedule and the Exhibits attached hereto are hereby incorporated as
           integral parts of this Agreement.

                   (b) This Agreement may be amended only with the written
           consent of each of the parties. No waiver of any right or remedy
           hereunder shall be valid unless the same shall be in writing and
           signed by the party giving such waiver. No waiver by any party with
           respect to any condition, default or breach of covenant hereunder
           shall be deemed to extend to any prior or subsequent condition,
           default or breach of covenant hereunder or affect in any way any
           rights arising by virtue of any prior or subsequent such occurrence.

           11.4.  SEVERABILITY. Any provision of this Agreement that is invalid,
     illegal or unenforceable in any jurisdiction shall, as to that
     jurisdiction, be ineffective to the extent of such invalidity, illegality
     or unenforceability, without affecting in any way the remaining provisions
     hereof in such jurisdiction or rendering that or any other provision of
     this Agreement invalid, illegal or unenforceable in any other jurisdiction.

           11.5.  INVESTIGATION OF THE PARTIES. All representations and
     warranties contained herein that are made to the best knowledge of a
     party shall require that such party make reasonable investigation and
     inquiry with respect thereto to ascertain the correctness and validity
     thereof.

           11.6.  SUBMISSION TO JURISDICTION. Each party (a) submits to the
     jurisdiction of any state or federal court sitting in Essex County,
     New Jersey in any action or proceeding arising out of or relating to this
     Agreement (including any action or proceeding for the enforcement of any
     arbitral award made in connection with any arbitration of a Dispute
     hereunder), (b) agrees that all claims in respect of such action or
     proceeding may be heard and determined in any such court, (c) waives any

                                     - 40 -
<PAGE>

     claim of inconvenient forum or other challenge to venue in such court, (d)
     agrees not to bring any action or proceeding arising out of or relating to
     this Agreement in any other court and (e) waives any right it may have to a
     trial by jury with respect to any action or proceeding arising out of or
     relating to this Agreement; provided in each case that, solely with respect
     to any arbitration of a Dispute, the Arbitrator shall resolve all threshold
     issues relating to the validity and applicability of the arbitration
     provisions of this Agreement, contract validity applicability of statutes
     of limitations and issue preclusion, and such threshold issues shall not be
     heard or determined by such court.

           11.7.    GOVERNING LAW. This Agreement shall be governed by and
     construed in accordance with the laws of the State of New Jersey.

           11.8.    CONSTRUCTION

                    (a) The language used in this Agreement shall be deemed to
           be the language chosen by the parties to express their mutual intent,
           and no rule of strict construction shall be applied against any
           party.

                    (b) The headings of the Sections and Subsections of this
           Agreement are included only for convenience and shall not affect the
           meaning or interpretation of this Agreement.

                    (c) References herein to Sections and Subsections shall
            mean such Sections and Subsections of this Agreement, except as
            otherwise specified. The words "herein" and "hereof" and other words
            of similar import refer to this Agreement as a whole and not to any
            particular part of this Agreement. The word "including" as used
            herein shall not be construed so as to exclude any other thing not
            referred to or described.

                    (d) In computing any period of time under this Agreement,
            the day from which the designated period of time begins to run
            shall not be included; the last day of the period so computed shall
            be included, unless it is not a business day, in which event the
            period shall run until the end of the next day that is a business
            day. For purposes of this Agreement, the term "business day" shall
            mean the day that is not a Saturday, a Sunday or a statutory or
            civic holiday in either the State of Missouri or the State of
            New Jersey.

                    (e) If the provisions of any Exhibit to this Agreement are
            inconsistent with the provisions of this Agreement, the provisions
            of this Agreement shall prevail.

            11.9.   COUNTERPARTS. This Agreement may be executed in two or more
     counterparts, each of which shall be deemed to be an original, but all of
     which shall constitute one and the same document.

                                     - 41 -
<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of and on the date first above written.

                               UNIVERSITY HEALTH PLANS, INC.

                               By:  /s/ Alexander H. McLean
                                   --------------------------------------------
                                   Name:  Alexander H. McLean
                                   Title: President and Chief Executive Officer

                               UNIVERSITY OF MEDICINE AND DENTISTRY
                                  OF NEW JERSEY

                               By:  /s/ James A. Archibald
                                   --------------------------------------------
                                   Name:  James A. Archibald
                                   Title: Senior Vice President

                               CENTENE CORPORATION

                               By:  /s/ Michael F. Neidorff
                                   --------------------------------------------
                                   Name:  Michael F. Neidorff
                                   Title: President and Chief Executive Officer

                                     - 42 -<PAGE>
                                                                    Exhibit 10.2

                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS AGREEMENT made and entered into as of the 1st day of July 2002, by
and between CENTENE CORPORATION, a Wisconsin corporation (hereinafter called the
"Company"), and Carol E. Goldman (hereinafter called the "Executive").

         1. EMPLOYMENT. Company hereby employs Executive as Vice President,
Chief Administrative Officer with such other or additional titles or positions
as Company's President, Vice Presidents, or Board of Directors may, from time to
time, determine.

         2. DUTIES. During the employment period, Executive shall faithfully
perform her duties to the best of her ability and in accordance with the
directions and orders (and to the satisfaction) of the Company's President and
Board of Directors of Company, and she shall devote her full working time,
attention and energy to the performance of her duties.

         In addition to the duties assigned to her by the Company's President
and/or Board of Directors of Company, Executive shall perform such other duties
as are commensurate with her position and responsibilities, including without
limitation, exercising her best judgment; safeguarding and saving from waste the
assets of Company; and following, maintaining, and implementing the business
plans, budgets, business procedures and directives established and promulgated
by Company, as modified or amended from time to time.

         Except as otherwise provided herein, Executive shall not render
services, directly or indirectly, to any other person or organization without
her Supervisor's prior written consent and shall not engage in any activity that
would interfere significantly with the faithful performance of her duties
thereunder. Executive may perform minor services for which she does not receive
compensation, provided that the activity does not conflict with the provisions
of her duties, without written consent.

         3. COMPENSATION. As compensation for all services rendered by Executive
under this agreement, company shall pay to Executive, in accordance with its
then prevailing payroll practices, a salary at the annualized rate of One
Hundred Fifteen Thousand Dollars ($115,000.00) less applicable payroll
deductions. This salary may be adjusted from time to time as directed by the
Executive's immediate supervisor or the Company's or Plan's President.

         4.       OTHER EMPLOYMENT BENEFITS.  During the Employment Period:

                  (a)      Company shall reimburse Executive monthly for actual,
                           reasonable, and necessary out-of-pocket expenses she
                           incurs on Company's business in compliance with
                           company policies and procedures.

                  (b)      Executive shall participate in such of Company's
                           Executive plans or fringe benefit arrangements as
                           provided for all Executives, subject to their terms
                           and conditions.

<PAGE>

                  (c)      VACATION LEAVE. During the Employment Term, Executive
                           shall be entitled to a number of vacation days as
                           established in the standard company policy for senior
                           executives. Executive shall accrue and receive full
                           compensation and benefits during her vacation leave
                           periods. Vacation leave shall be taken at such times
                           as do not have an adverse effect on the operations or
                           transactions of the Company or otherwise as Executive
                           and her immediate supervisor shall agree.

                  (d)      BONUS PLAN. The annual target bonus is 30% of base
                           salary with potential to exceed that if and when the
                           company exceeds its Annual Operating Plan criteria.
                           This award is at the discretion of the Company's
                           President. The Bonus Plan may be adjusted from time
                           to time as directed by the Company's President.

         5.       TERMINATION OF EMPLOYMENT.

                  (a)      TERMINATION FOR CAUSE. If the Company terminates
                           Executive's employment For Cause, or if Executive
                           resigns from her employment pursuant to Subsection
                           5(b), Executive shall be entitled only to payment of
                           that portion of her Salary earned through and
                           including the Termination Date or the Resignation
                           Date at the rate of Salary in effect at that time.

                  (b)      RESIGNATION. Executive may resign from her employment
                           with the Company at any time by providing written
                           notice of her resignation to her immediate supervisor
                           at least thirty (30) days before the Resignation
                           Date, in which case she shall be entitled to
                           compensation as provided in Subsection 5(a).

                  (c)      DEATH. If Executive dies during her employment, or
                           Executive is entitled to receive payments from the
                           Company pursuant to Section 5(a) at the time of her
                           death, Executive's estate or personal representative
                           shall be entitled to receive that portion of the
                           Salary, at the rate in effect at Executive's death,
                           that Executive earned through and including the date
                           of Executive's death.

                  (d)      DISABILITY. If Executive becomes Permanently
                           Disabled, the Board may terminate Executive's
                           employment by providing written notice to Executive
                           at least 72 hours before the Termination Date. If
                           Executive resigns from employment with the Company
                           as a result of a Permanent Disability, or the
                           Company terminates Executive's employment as a result
                           of a Permanent Disability, Executive shall be
                           entitled to receive that portion of her Salary, at
                           the rate in effect at the time she became Permanently
                           Disabled, that she earned through and including the
                           Termination Date or Resignation Date, as applicable;
                           provided, however, the amount due and payable for the
                           period on and after the date on which Executive
                           became Permanently Disabled shall not be less than
                           the portion of the Salary that would have been paid
                           to her if she had continued in the

<PAGE>

                           Company's employment for the 180 day period following
                           the date on which she became Permanently Disabled.

                  (e)      COMPENSATION FOLLOWING TERMINATION. If the Company
                           terminates Executive's employment other than For
                           Cause the Company shall pay Executive that portion
                           of her Salary earned through and including the
                           Termination Date or the Resignation Date at the rate
                           of Salary in effect at that time, plus an amount
                           equal to twenty six (26) weeks of her annualized
                           Salary paid as salary continuance in accordance with
                           the then current payroll practices, and conditioned
                           upon Executive's signing, and not revoking, a
                           complete Release of any and all claims. In such case,
                           Company shall pay for six (6) of the eighteen (18)
                           months health and dental insurance continuation
                           coverage to which Executive is entitled under the
                           Consolidated Omnibus Budget Reconciliation Act of
                           1985, Public Law 99-272, Title X (COBRA).

                  (f)      CHANGE OF CONTROL In the event of a "Change in
                           Control" which, within 24 months from and after such
                           Change in Control results in (a) the involuntary
                           termination of Executive's employment by the Company,
                           or (b) the voluntary resignation of employment by
                           Executive because of (i) the reduction of Executive's
                           compensation, (ii) a material adverse change in
                           Executive's position with the Company or the nature
                           or scope of Executive's duties or (iii) a request by
                           the Company or the surviving entity of the
                           transaction that resulted in the Change of Control
                           that Executive relocate outside of the Metropolitan
                           St. Louis area which Executive refuses, then
                           Executive shall receive severance equal to (36) weeks
                           pay paid at her choice (which choice shall be
                           irrevocably made and set forth as part of the Release
                           described below) either as a lump sum payment or
                           salary continuance, rather than the severance paid
                           pursuant to paragraph 5(e) above, but conditioned
                           upon Executive's signing, and not revoking, a
                           complete Release of any and all claims. In such case,
                           Company shall pay for (9) of the eighteen (18) months
                           health and dental insurance continuation coverage to
                           which Executive is entitled under the Consolidated
                           Omnibus Budget Reconciliation Act of 1985, Public Law
                           99-272, Title X (COBRA). In addition, the Company
                           agrees to pay for reasonable outplacement services
                           arranged by the Company. Notwithstanding the
                           foregoing, no payment or payments shall be made under
                           this Agreement which would be an "excess parachute
                           payment" as defined inss.280G(b) of the Internal
                           Revenue Code of 1986, as amended. Payments which
                           would be "excess parachute payments" shall be
                           proportionately reduced so that no portion of any
                           payment shall constitute an "excess parachute
                           payment." For purposes hereof a "Change in Control"
                           of the Company shall be deemed to occur if (i) any
                           "person" (as such term is used inss.ss.13(d) and
                           14(d) of the Securities Exchange Act of 1934, as
                           amended (the "Exchange Act")), other than (A) persons
                           who, at the date of this Agreement, are the
                           beneficial owners of 25% or more of the Company's
                           voting securities or (B) a group including Executive,
                           is or

<PAGE>

                           becomes the "beneficial owner" (as defined in
                           Rule 13d-3 under the Exchange Act), directly or
                           indirectly, of securities of the Company representing
                           fifty percent (50%) or more of the combined voting
                           power of the Company's then outstanding securities,
                           or (ii) the shareholders of the Company approve a
                           merger or consolidation of the Company with any other
                           corporation, other than a merger or consolidation
                           which would result in the voting securities of the
                           Company outstanding immediately prior thereto
                           continuing to represent (either by remaining
                           outstanding or by being converted into voting
                           securities of the surviving entity) at least fifty
                           percent (50%) of the combined voting power of the
                           voting securities of the Company or such surviving
                           entity outstanding immediately after such merger or
                           consolidation. Further, for purposes hereof, a
                           "Change in Control" also shall be deemed to occur if
                           individuals who, as the date hereof, constitute the
                           Board of Directors of the Company (the "Incumbent
                           Board) cease for any reason to constitute at least a
                           majority of the Board of Directors of the Company;
                           provided, however, that an individual becoming a
                           director subsequent to the date hereof whose
                           election, or nomination for election by the Company's
                           shareholders, was approved by at least a majority of
                           the directors then comprising the Incumbent Board
                           shall be included within the definition of Incumbent
                           Board, but excluding, for this purpose, any such
                           individual whose initial assumption of office occurs
                           as a result of either an actual election contest (or
                           such terms are used in Rule 14a-11 of Regulation 14A
                           promulgated under the Exchange Act) or other actual
                           or threatened solicitation of proxies or consents by
                           or on behalf of a person other than the Board.

         6.       COVENANTS.

                  (a)      NON-COMPETITION BY EXECUTIVE. The Executive
                           acknowledges that the list of the Company's
                           customers and customer contacts as it may exist
                           from time to time are valuable, special, and unique
                           assets of the Company's business. During the period
                           of six (6) months immediately after the termination
                           of Executive's employment with the Company for any
                           cause whatsoever, Executive will not, either directly
                           or indirectly, either for Executive or for any other
                           person, firm, Company or corporation, call upon,
                           solicit, divert, or take away, or attempt to solicit,
                           divert or take away any of the Executives, customers,
                           prospective customers, or business, of the Company
                           upon whom Executive called, solicited, catered, or
                           became acquainted during Executive's employment with
                           the Company.

                  (b)      RETURN OF COMPANY RECORDS AND PROPERTY. Executive
                           agrees that upon termination of Executive's
                           employment, for any cause whatsoever, Executive will
                           surrender to the Company in good condition all
                           property and equipment belonging to Company and all
                           records kept by Executive containing the names,
                           addresses or any other information with regard to
                           customers or customer contacts of the Company, or
                           concerning any

<PAGE>
                           operational, financial or other documents given to
                           Executive during Executive's employment with Company.

                  (c)      NON-DISCLOSURE BY EXECUTIVE. The Executive
                           acknowledges and agrees that any information obtained
                           by Executive while employed by the Company, including
                           but not limited to customer lists and customer
                           contacts, financial, promotional, marketing, training
                           or operational information, and employment data is
                           highly confidential, and is important to the Company
                           and to the effective operation of the Company's
                           business. Executive, therefore, agrees that while
                           employed by the Company, and at any time thereafter,
                           Executive will make no disclosure of any kind,
                           directly or indirectly, concerning any such
                           confidential matters relating to the Company or any
                           of its activities.

                  (d)      ENFORCEMENT. In the event of a breach or threatened
                           breach by the Executive of the provisions of this
                           Agreement, the Company shall be entitled to a
                           restraining order and/or an injunction restraining
                           the Executive from contacting, servicing or
                           soliciting Company's customers, or customer contacts,
                           or utilizing or disclosing, in whole or in part, the
                           list of the Company's customers, customer contacts,
                           employees, or financial, operational, promotional,
                           marketing, or training information, or from rendering
                           any services to any persons, firm, corporation,
                           association, or other entity to whom such list or
                           information, in whole or in part, has been disclosed
                           or is threatened to be disclosed. In the event the
                           Company is successful in any suit or proceeding
                           brought or instituted by the Company to enforce any
                           of the provisions of this agreement on account of any
                           damages sustained by the Company by reason of the
                           violation by the Executive of any of the terms and/or
                           provisions of this agreement to be performed by the
                           Executive, the Executive agrees to pay the Company
                           reasonable attorney's fees to be fixed by the Court.

         7.       INVENTIONS.

                  (a)      Executive shall promptly communicate and disclose in
                           writing to Company all those inventions and
                           developments including software, whether patentable
                           or not, as well as patents and patent applications
                           (hereinafter collectively called "Inventions"), made,
                           conceived, developed, or purchased by her, or under
                           which she acquires the right to grant licenses or to
                           become licensed, alone or jointly with others, which
                           have arisen or jointly with others, which have arisen
                           or may arise out of her employment, or relate to any
                           matters pertaining to, or useful in connection
                           therewith, the business or affairs of Company or any
                           of its subsidiaries. Included herein as if developed
                           during the employment period is any specialized
                           equipment and software developed for use in the
                           business of Company. All of Executive's right, title
                           and interest in, to, and under all such inventions,
                           licenses, and right to grant licenses shall be the
                           sole property

<PAGE>

                           of Company. Any such inventions disclosed to anyone
                           by Executive within one (1) year after the
                           termination of employment for any cause whatsoever
                           shall be deemed to have been made or conceived by
                           Executive during the Employment Period.

                  (b)      As to all such invention, Executive shall, upon
                           request of Company:

                           i.       Execute all documents which Company shall
                                    deem necessary or proper to enable it to
                                    establish title to such inventions or other
                                    rights, and to enable it to file and
                                    prosecute applications for letters patent of
                                    the United States and any foreign country;
                                    and

                           ii.      Do all things (including the giving of
                                    evidence in suits and other proceedings)
                                    which Company shall deem necessary or proper
                                    to obtain, maintain, or assert patents for
                                    any and all such inventions or to assert its
                                    rights in any inventions not patented.

         8. LITIGATION. Executive agrees that during her employment or
thereafter, she shall do all things, including the giving of evidence in suits
and other proceedings, which Company shall deem necessary or proper to obtain,
maintain or assert rights accruing to Company during the employment period and
in connection with which Executive has knowledge, information or expertise. All
reasonable expenses incurred by Executive in fulfilling the duties set forth in
this paragraph 8 shall be reimbursed by Company to the full extent legally
appropriate, including, without limitation, a reasonable payment for Executive's
time.

         9. MODIFICATION. No modification, amendment, or waiver of any of the
provisions of this Agreement shall be effective unless made in writing
specifically referring to this Agreement and signed by all parties therefore.

         10. ENTIRE AGREEMENT. This instrument constitutes the entire agreement
of the parties hereto with respect to Executive's employment and her
compensation therefore.

         11. WAIVER. The failure to enforce at any time any of the provisions of
this agreement or to require at any time performance by any party of any of the
provisions hereof shall in no way be construed to be a waiver of such provisions
or to affect either the validity of this Agreement, or any part hereof, or the
right of each party thereafter to enforce each and every provision in accordance
with the terms of this Agreement.

         12. SEVERABILITY. The invalidity or unenforceability of any particular
provision of this Agreement shall not affect the other provisions hereof, and
this Agreement shall be construed in all respects as if such invalid or
unenforceable provision were omitted.

         13. PRONOUNS. As used herein, the term "Executive" and the pronouns
therefore have been used for convenience only, and corresponding terms
reflecting the proper gender of Executive shall be deemed substituted by the
parties hereto where appropriate.

<PAGE>

         14. SUCCESSORS. This Agreement shall be binding upon and shall inure to
the benefit of Company and any successor or assign of Company. For the purposes
of this Agreement, the terms "successor or assign" shall mean any person, firm,
corporation, or other business entity which, at any time, whether by merger,
purchase, assignment or otherwise, shall acquire the assets or business of
Company in part or as a whole.

         This Agreement shall also be binding upon and shall inure to the
benefit of Executive and her legal representatives and assigns, except that
Executive's obligations to perform such future services and rights to receive
payment therefore are hereby expressly declared to be non-assignable and
non-transferable.

         15. GOVERNING LAW. This Agreement shall be interpreted and executed in
accordance with the laws of the State of Missouri.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be duly executed as of the day and year first above written.

                                            CENTENE CORPORATION

                                            /s/ Michael F. Neidorff
                                            ----------------------------------
                                            By: Michael F. Neidorff
                                                "Company"

                                            /s/ Carol E. Goldman
                                            ----------------------------------
                                            By: Carol E. Goldman
                                                "Executive"

Date: July 1, 2002

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