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                                                                    EXHIBIT 10.4

          MEMO SUMMARIZING JOSHUA M. BERMAN'S COMPENSATION ARRANGEMENT

    Joshua M. Berman had until 29 February 2000 been affiliated with a law firm
that served as outside counsel to the Company and had since 1 March 2000 been
engaged by the Company to render legal, regulatory and other professional
services. On June 25, 2002, the Compensation Committee recommended and the Board
of Directors approved a resolution that his compensation be continued at the
same level as he has received since 1 March 2000, namely that his compensation
be set at $30,000 per month; that the compensation be paid to him as an employee
and Vice President of the Company; that he be entitled to health benefits but
not other fringe benefits; and that he receive normal and customary expenses and
have the use of a secretary. On July 31, 2002 Mr. Berman terminated his
engagement and the compensation arrangement.<Page>

                                                                    EXHIBIT 10.1

                            INDEMNIFICATION AGREEMENT

     THIS INDEMNIFCIATION AGREEMENT (the "Agreement") is effective as of March
1, 2002, by and between Cobalt Corporation ("Cobalt") and United Government
Services, LLC ("UGS").

     WHEREAS, UGS was organized as a limited liability company on January 1,
1999;

     WHEREAS, Cobalt is the parent corporation of Blue Cross & Blue Shield
United of Wisconsin ("BCBSUW"), which owns one hundred percent (100%) of UGS;

     WHEREAS, BCBSUW and UGS entered into a Contribution Agreement on January 1,
1999, whereby BCBSUW transferred assets to UGS to perform the Medicare Part A
Contract HCFA-87-001-1.70 dated October 1, 1987, as amended, by and between
BCBSUW and the Centers for Medicare and Medicaid Services ("CMS") (the "Medicare
Part A Contract");

     WHEREAS, BCBSUW and UGS seek to novate the Medicare Part A Contract from
BCBSUW to UGS; and

     WHEREAS, Cobalt desires to provide a financial guarantee to UGS with
respect to its performance of services under the Medicare Part A contract
following the novation of the Medicare Part A Contract.

     NOW, THEREFORE, in consideration of the mutual promises contained herein,
Cobalt and UGS hereby agree as follows:

     Cobalt hereby guarantees any claims asserted against UGS resulting from the
contractual and financial obligations of UGS in the administration of the
Medicare Part A contract, in an amount equal to 20% of the annual administrative
revenue for the Medicare Part A Contract, measured by the Notice of Budget
Approval, less the equity of UGS.

COBALT CORPORATION                          UNITED GOVERNMENT SERVICES,
                                            LLC

/s/ Thomas R. Hefty                         /s/ Sandra L. Coston
-----------------------------               ----------------------
Thomas R. Hefty                             Sandra L. Coston
Chairman, President & CEO                   President<Page>

                                                                    EXHIBIT 10.2

              NOVATION AGREEMENT FOR TRANSFER OF MEDICARE FUNCTIONS
                          TO AN AFFILIATED ORGANIZATION

This Novation Agreement is entered into as of May 29, 2002, by and between Blue
Cross & Blue Shield United of Wisconsin, a corporation duly organized and
existing under the laws of the State of Wisconsin, with its principal office in
the City of Milwaukee (hereinafter referred to as the "Transferor"); United
Government Services, LLC, a limited liability company duly organized and
existing under the laws of the State of Wisconsin, with its principal office in
the City of Milwaukee (hereinafter referred to as the "Transferee"); the Blue
Cross and Blue Shield Association, an association of independent Blue Cross and
Blue Shield Plans and a corporation duly organized and existing under the laws
of the State of Illinois, with its principal office in the City of Chicago,
Illinois (hereinafter referred to as the "Association"); and the Department of
Health and Human Services (hereinafter referred to as the "Government').

                                  WITNESS THAT

1.   WHEREAS, the Government has entered into a consecutive series of agreements
     with the Association, as prime contractor, to engage in the administration
     of the Medicare program pursuant to Title XVIII of the Social Security Act;
     and,

2.   WHEREAS, the Association has further entered into a consecutive series of
     subcontracts, beginning July 1, 1966, in administering the Medicare
     program, the last becoming effective October 1, 1998, and it continues in
     force as of the date of this Novation Agreement. The term "subcontracts" as
     used herein means the aforementioned subcontracts, including modifications
     thereto, heretofore made between the Association and the Transferor, and
     such remaining rights, duties or obligations, pursuant to the aforesaid
     subcontracts. These subcontracts are herein incorporated by reference; and,

3.   WHEREAS, as of January 1, 1999, the Transferor assigned, conveyed, and
     transferred to the Transferee all the assets pertaining to the Medicare
     Part A program of the Transferor to the Transferee; and,

4.   WHEREAS, as of January 1, 1999, the Transferee, by virtue of said
     assignment, conveyance, and transfer, has acquired all the assets
     pertaining to the Medicare Part A program of the Transferor; and,

5.   WHEREAS, by virtue of said assignment, conveyance, and transfer, the
     Transferee has assumed all of the duties, obligations, and liabilities of
     the Transferor under the subcontracts except as referenced in this Novation
     Agreement; and,

                                                          NOVATION AGREEMENT FOR
                                                  TRANSFER OF MEDICARE FUNCTIONS
                                                   TO AN AFFILIATED ORGANIZATION
                                                                     Page 1 of 6
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6.   WHEREAS, the Transferee is in a position fully to perform the subcontracts
     and such obligations as may exist under the subcontracts; and,

7.   WHEREAS, it is consistent with the Association's and the Government's
     interest to recognize the Transferee as the successor party to the
     subcontracts.

NOW THEREFORE, in consideration of these premises, the parties hereto agree as
follows:

1.   Except for matters addressed in paragraph 2 below,

     A.   The Transferor hereby confirms said assignment, conveyance, and
          transfer to the Transferee and does hereby release and discharge the
          Association and the Government from, and does hereby waive, any and
          all claims, demands, and rights against the Government which it now
          has or may hereafter have in connection with the subcontracts which
          arise out of occurrences on or after May 29, 2002.

     B.   The Transferee hereby assumes, agrees to be bound by, and agrees to
          perform each and every one of the terms, covenants, and conditions
          contained in the subcontracts on or after May 29, 2002. The Transferee
          further assumes all obligations and liabilities on or after May 29,
          2002, of all claims and demands against the Transferor under such
          subcontracts on or after May 29, 2002 in all respects as if the
          Transferee were the original party to the subcontracts. Further, the
          Transferee hereby ratifies all previous actions of the Transferor with
          respect to the subcontract as if the Transferee were the original
          party.

2.   With respect to any action or proceeding pertaining to matters of program
     integrity and as to which claims are made or asserted for criminal
     liability, civil actions for damages or application of civil monetary
     penalties, the Transferor shall bear sole responsibility with respect to
     occurrences prior to May 29, 2002, with the Transferee bearing sole
     responsibility for occurrences on and after May 29, 2002.

3.   The Association and the Government hereby recognize the Transferee as the
     Transferor's successor in interest in and to the subcontracts as of May 29,
     2002. The Transferee hereby becomes entitled to all rights, title, and
     interest of the Transferor in and to the subcontracts in all respects as if
     the Transferee were the original party to the subcontracts. As of the
     effective date of this Agreement, the term "Plan" as used in the
     subcontracts shall be deemed to refer to the Transferee rather than to the
     Transferor.

                                                          NOVATION AGREEMENT FOR
                                                  TRANSFER OF MEDICARE FUNCTIONS
                                                   TO AN AFFILIATED ORGANIZATION
                                                                     Page 2 of 6
<Page>

4.   The Association, the Transferor, and the Transferee hereby agree that the
     Government shall not be obligated to pay or reimburse any of them for, or
     otherwise give effect to, any costs, taxes, or other expenses, or any
     increases therein, directly or indirectly arising out of or resulting from:
     (a) said assignment, conveyance, and transfer, or (b) this Novation
     Agreement, other than those the Government, in the absence of said
     assignment, conveyance, and transfer, or this Novation Agreement, would
     have been obligated to pay or reimburse under the terms of the
     subcontracts.

5.   Except as expressly provided herein, nothing in this Novation Agreement
     shall be construed as a waiver of any rights of the Association or the
     Government against the Transferor.

6.   The Transferor hereby guarantees payment of all liabilities and the
     performance of all obligations prior to May 29, 2002.

7.   Notwithstanding the foregoing provisions, all payments and reimbursements
     heretofore made by the Association or the Government to the Transferor, and
     all other actions heretofore taken by the Association or the Government
     pursuant to its obligations under the subcontracts shall be deemed to have
     discharged PRO TANTO the Association's and Government's obligations under
     the subcontracts. All payments and reimbursements made by the Association
     or the Government after the date of this Novation Agreement in the name of
     or to the Transferor shall have the same force and effect as if made to
     Transferee and shall constitute a complete discharge of the Association's
     and the Government's obligations under the subcontracts, to the extent of
     the amounts so paid or reimbursed.

8.   Except as herein modified, the subcontracts shall remain in full force and
     effect.

9.   Nothing in this Novation Agreement shall relieve Transferor or Transferee
     from compliance with any federal law.

                                                          NOVATION AGREEMENT FOR
                                                  TRANSFER OF MEDICARE FUNCTIONS
                                                   TO AN AFFILIATED ORGANIZATION
                                                                     Page 3 of 6
<Page>

IN WITNESS WHEREOF, each of the parties hereto has executed this Novation
Agreement as of the day and year first above written.

BLUE CROSS & BLUE SHIELD                         UNITED GOVERNMENT SERVICES, LLC
UNITED OF WISCONSIN                              (Transferee)
(Transferor)

By: /s/ Thomas R. Hefty                          By: /s/ Sandra L. Coston
------------------------------                   -------------------------------
(Signature)                                      (Signature)

Thomas R. Hefty                                                 SANDRA L. COSTON
------------------------------                   -------------------------------
(Name)                                           (Name)

 Chairman, CEO                                              PRESIDENT
------------------------------                   -------------------------------
(Title)                                          (Title)

           6/3/02                                          5/30/02
------------------------------                   -------------------------------
(Date)                                           (Date)

DEPARTMENT OF HEALTH AND HUMAN                   BLUE CROSS AND BLUE SHIELD
SERVICES                                                 ASSOCIATION

By: /s/ M.K. Markman                             By: /s/ Harvey W. Friedman
------------------------------                   -------------------------------
(Signature)                                      (Signature)

       M.K. MARKMAN                                      Harvey W. Friedman
------------------------------                   -------------------------------
(Name)                                           (Name)

       Contracting Officer                         Medicare Contracting Officer
------------------------------                   -------------------------------
(Title)                                          (Title)

          6/20/02                                           6/17/2002
------------------------------                   -------------------------------
(Date)                                           (Date)

                                                          NOVATION AGREEMENT FOR
                                                  TRANSFER OF MEDICARE FUNCTIONS
                                                   TO AN AFFILIATED ORGANIZATION
                                                                     Page 4 of 6
<Page>

NOTE: Each Corporate Signatory to this Novation Agreement should cause the
following certificate to be executed under its corporate seal if it has one,
provided that the same officers shall not execute both the Novation Agreement
and the certificate.

                                   CERTIFICATE

I, Stephen E. Bablitch, certify that I am the Secretary of Blue Cross & Blue
Shield United of Wisconsin (Transferor); that Thomas R. Hefty, who signed this
Novation Agreement on behalf of this corporation, was then Chairman and CEO of
this corporation; and that this Novation Agreement was duly signed for and on
behalf of this corporation by authority of its governing body and within the
scope of its corporate powers.

Witness my hand and the seal of this corporation this 3rd day of June, 2002.

By: /s/ Stephen E. Bablitch
    -----------------------
(Corporate Seal)

                                   CERTIFICATE

I, Jorge Gomez, certify that I am the V.P and General Counsel of United
Government Services, LLC (Transferee); that SANDRA L. COSTON, who signed this
Novation Agreement on behalf of this company, was then President of this
company; and that this Novation Agreement was duly signed for and on behalf of
this company by authority of its governing body and within the scope of its
corporate powers.

Witness my hand this 30th day of May, 2002.

By: /s/ Jorge Gomez
    ---------------

                                                          NOVATION AGREEMENT FOR
                                                  TRANSFER OF MEDICARE FUNCTIONS
                                                   TO AN AFFILIATED ORGANIZATION
                                                                     Page 5 of 6
<Page>

                                   CERTIFICATE

I, Roger G. Wilson, certify that I am the Secretary of the Blue Cross and Blue
Shield Association (Association); that Harvey W. Friedman, who signed this
Novation Agreement on behalf of this corporation, was then Medicare Contracting
Officer of this corporation; and that this Novation Agreement was duly signed
for and on behalf of this corporation by authority of its governing body and
within the scope of its corporate powers.

Witness my hand and the seal of this corporation this 17th day of June, 2002.

By: /s/ Roger G. Wilson
    -------------------

(Corporate Seal)

                                                          NOVATION AGREEMENT FOR
                                                  TRANSFER OF MEDICARE FUNCTIONS
                                                   TO AN AFFILIATED ORGANIZATION
                                                                     Page 6 of 6

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