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                                                                    EXHIBIT 10.7

                       Empire Blue Cross and Blue Shield
                2000-2002 Long-Term Incentive Compensation Plan

1.   Purpose of the Plan

     The purpose of the Empire Blue Cross and Blue Shield 2000-2002 Long-Term
     Incentive Compensation Plan (the "Plan") is (i) to improve long-term
     corporate performance by basing a significant portion of senior executive
     compensation on long-term corporate results, and (ii) to provide a total
     compensation opportunity for senior executives of Empire Blue Cross and
     Blue Shield and any successor thereto by merger, consolidation or sale or
     other transfer of substantially all of its assets (the "Company") that is
     competitive with other major insurance and financial services companies,
     thereby enabling the Company to attract and retain key senior executives.

2.   Administration

     The Plan shall be administered by the Nominating and Compensation Committee
     (the "Committee") of the Company's Board of Directors (the "Board").
     Subject to the approval of the Board, the Committee shall have full
     authority with respect to the operation, administration, and interpretation
     of the Plan and in the granting of awards thereunder, and shall be
     authorized to prescribe, amend, and rescind rules and make all other
     determinations necessary or desirable for the Plan's operation and
     administration. All actions taken by it in the operation, administration,
     and interpretation of the Plan shall be final and binding on all
     participants.

3.   Participation

     Eligibility to participate in the Plan shall be limited to those senior
     executives who, in the judgment of the Committee, have a significant and
     direct influence on long-term corporate performance. By no later than June
     30, 2000, the Committee shall, based on the recommendations of the
     Company's chief executive officer, designate the specific executive
     positions eligible for participation in the Plan. Participation in the Plan
     shall be limited to employees holding such a designated executive position
     as of June 30, 2000, prorated as necessary for individuals hired after
     January 1, 2000, but prior to June 30, 2000. Once the Committee has
     finalized participation for the performance cycle, new participants
     generally will not be added after June 30 until the next performance cycle.
     For performance cycles beginning on or after January 1, 2001, the Committee
     may approve the addition of participants up to each June 30/th/. An
     individual's active participation shall cease in the event that he or she
     ceases to hold such a designated executive position.

4.   Plan Term/Performance Cycle

     The term over which long-term performance shall be measured is the
     three-year period commencing January 1, 2000 and ending December 31, 2002.
     Each calendar year within the plan term will be referred to as a
     performance cycle.

5.   Performance Goals

     The Committee has established quantitative performance goals for each
     performance cycle. These goals include both financial and strategic
     business goals against which corporate performance will be measured. The
     Committee reserves the right to adjust goals based on extenuating business
     circumstances. The performance goals for each performance cycle are set
     forth in Appendix A.

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6.   Performance Factor

     On or before the March 31/st/ immediately following the end of any
     performance cycle, the Committee shall determine the corporate long-term
     performance factor (which shall not exceed 1.5) that will be multiplied by
     the award opportunities under Section 7 to determine the award levels for
     such performance cycle.

     The performance factor for each performance cycle shall be determined using
     a two-step process. In the first step of the process, the level of
     attainment of the performance goals established for each performance cycle
     shall be established. In determining the degree to which such performance
     goals have been attained, the Committee may take into consideration changes
     in corporate strategy and in the market, economic, tax, and regulatory
     environments during the cycle. As the second step in the process the
     Committee may, in its discretion, adjust the results in step one, either
     positively or negatively, to reflect such qualitative considerations (which
     may inclued, but shall not necessarily be limited to, corporate image,
     systems quality, and performance relative to other Blue Cross and Blue
     Shield plans and commerical insurers) as the Committee deems relevant.

7.   Award Opportunities

     Except as provided in individual cases as noted in Appendix B, page 6 (as
     calculated and defined therein), an award opportunity shall be established
     for each year under the Plan for each designated executive position and
     shall be between 17% and 75% of the participant's base salary in effect as
     of June 30, 2000. In consideration of salary increases during the Plan
     term, this initial award opportunity amount will be increased by 5% on a
     one-time basis and multiplied by three to cover the three years in the
     term. The schedule of award opportunities under the Plan is set forth in
     Appendix B.

     New participants who enter the Plan after June 30, 2000 will have their
     award opportunity based only on their actual base salary at the time the
     time the Committee approves their participation in the Plan.

8.   Vesting Schedule

     The schedule of awards earned, if any, and vested for each performance
     cycle is as follows: one-third would be earned based on the results
     attained for each performance cycle. Any award earned will be subject to a
     two-year vesting period. Therefore, one-third would be payable after three
     years (i.e., two years from the last day of the performance cycle), the
     next third after four years, and the final third after five years.

9.   Award Adjustments

     A participant will receive his or her Award payment as soon as practicable
     following the end of a vesting period presuming he or she was employed on
     the vesting date. Such payment will be made within thirty days following
     the end of such vesting period. If employment is terminated by reason of
     retirement, death, permanent disability, or for such other reason as
     approved by the Committee, a pro-rated payment will be made based on the
     number of months the individual was employed during the 12-months timeframe
     for each performance cycle. In the event of death, the Committee has
     discretion to pay the full award. All payments with respect to a deceased
     participant shall be paid to his or her estate or other successor in
     interest.

10.  Effective Date of Plan

     The Plan is effective as of January 1, 2000.

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11.  Amendment and Termination

     The Board may suspend or terminate the Plan, in whole or in part, at any
     time, and may from time to time amend the Plan in such respects as the
     Board may deem advisable, provided that no such suspension, termination, or
     amendment shall have a materially adverse effect on the rights of any
     participant with respect to any award that has been made to such
     participant prior to such amendment, suspension, or termination.

12.  Miscellaneous

     (a)  The establishment of the Plan shall not be construed as conferring any
          legal rights upon any participant for a continuation of employment,
          nor shall it interfere with the rights of the Company to discharge a
          participant and treat him or her without regard to the effect which
          such treatment might have upon him or her as a participant in the
          Plan.

     (b)  The Company shall have the right to deduct from any amounts otherwise
          payable to a participant, whether pursuant to the Plan or otherwise,
          or otherwise collect from the participant, any required minimum
          withholding taxes with respect to benefits under the Plan.

     (c)  Subject to any applicable law, no benefit under the Plan shall be
          subject in any manner to, nor shall the Company be obligated to
          recognize, any purported anticipation, alienation, sale, transfer
          (otherwise than by will or the laws of descent and distribution),
          assignment, pledge, encumbrance, or charge and any attempt to do so
          shall be void. No such benefit shall in any manner be liable for or
          subject to garnishment, attachment, execution, or a levy, or liable
          for or subject to the debts, contracts, liabilities, engagements, or
          torts of the participant.

     (d)  The Plan shall not be construed as conferring on a participant any
          right, title, interest, or claim in or to any specific asset, reserve,
          account, or property of any kind possessed by the Company. To the
          extent that a participant or any other such person acquires a right to
          receive payments from the Company, such rights shall be no greater
          than the rights of an unsecured general creditor.

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                                                                    Exhibit 10.8

                           EMPIRE BLUECROSS BLUESHIELD
                            LONG TERM INCENTIVE PLAN

1.       PURPOSE OF PLAN

The purpose of the Empire BlueCross BlueShield Long Term Incentive Plan (the
"Plan") is (i) to improve long-term corporate performance by basing a
significant portion of senior executive compensation on corporate results over a
period of several years and (ii) to retain senior executives by deferring
payment of such compensation until the end of each such period and generally
requiring participants to be employed with Empire BlueCross BlueShield
("Company") on the payment date. The Plan is intended to constitute a plan
described in Treasury Regulation section 1.162-27(f)(1), pursuant to which the
deduction limit under section 162(m) of the Internal Revenue Code of 1986, as
amended (the "Code"), shall not apply during the applicable reliance period.

2.       ADMINISTRATION

The Plan shall be administered by the Nominating and Compensation Committee (the
"Committee") of the Board of Directors (the "Board") of Empire BlueCross
BlueShield or its successor (the "Company"). The number of individuals that
shall constitute the Committee shall be determined from time to time by a
majority of all the members of the Board, and, unless that majority of the Board
determines otherwise, shall consist of not less than two (2) members each of
whom shall be (i) "Non-Employee Directors" within the meaning of Rule
16b-3(b)(3) (or any successor rule) promulgated under the Securities Exchange
Act of 1934, as amended (the "Exchange Act") and (ii) "outside directors" within
the meaning of Treasury Regulation Section 1.162-27(e)(3) under Section 162(m)
of the Code. Subject to the approval of the Board, the Committee shall have full
authority with respect to the operation, administration, and interpretation of
the Plan and in the granting of awards thereunder, and shall be authorized to
prescribe, amend, and rescind rules and make all other determinations necessary
or desirable for the Plan's operation and administration. All actions taken by
the Committee, in its sole discretion, in the operation, administration and
interpretation of the Plan shall be final and binding on all participants and
their successors. The entire Board may act as the Committee if it chooses to do
so.

3.       PARTICIPANTS

Eligibility to participate in the Plan is limited to those senior executives
who, in the Committee's judgement based on the recommendations of the Company's
chief executive officer, have a significant and direct influence on long-term
corporate performance. During the first 90 days of each performance period under
the Plan, the Committee shall designate the specific executive positions or
senior executives eligible to participate in such period. At anytime during the
first six months of any performance period, the Committee in its sole discretion
may add senior executives who might otherwise be eligible for a performance
period, particularly new hires or employees who are promoted to an eligible
position. Participation in any performance period does not ensure participation
in future performance periods.

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An individual's active participation in any performance period shall cease in
the event that he or she ceases to be employed in a designated executive
position for such period. A participant who holds a designated executive
position for any performance period shall not be affected by a change to another
designated executive position for such period, including but not limited to
promotions, demotions, transfers and other such employment actions.

4.       PERFORMANCE PERIODS

Unless otherwise determined by the Committee, the term over which long-term
performance shall be measured shall be a three consecutive year period
commencing on any January 1. A new performance period generally shall commence
on each January 1, with the first performance period to begin January 1, 2003,
and participants may concurrently participate in more than one performance
period at any time.

5.       PERFORMANCE GOALS

The Committee shall establish objective performance goals for each performance
period using one or more of the following goals:

(i)    earnings
(ii)   earnings per share
(iii)  market share
(iv)   operating profit
(v)    operating margin
(vi)   return on equity
(vii)  return on assets
(viii) total return to stockholders
(ix)   membership
(x)    member satisfaction
(xi)   e-business
(xii)  technology improvements
(xiii) claims handling
(ix)   return on investment capital

In addition, awards under the Plan may include comparisons to the performance of
other companies, such performance to be measured by one or more of the foregoing
business criteria. To the extent the deduction limits under section 162 (m) of
the Code become applicable with respect to remuneration under the Plan, the
Committee shall establish in writing (i) the performance goals applicable to a
given period, and such performance goals shall state, in terms of an objective
formula or standard, the method for computing the amount of compensation payable
to the participant if such performance goals are obtained and (ii) the
individual employees or class of employees to which such performance goals apply
no later than ninety (90) days after the commencement of such period (but in no
event after twenty five percent (25) of such period has elapsed).

Awards under the Plan made to Persons who are "covered employees" within the
meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended
("Code") are intended to

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meet the requirements applicable to "qualified performance-based compensation"
for purposes of the exemption from the compensation deduction limitation
described in Section 162(m) of the Code, to the extent that the deduction limits
under such Code section become applicable with respect to remuneration under the
Plan. Accordingly, to the extent the deduction limits under section 162 (m) of
the Code become applicable with respect to remuneration under the Plan, the
provisions of the Plan shall be interpreted in a manner consistent with Section
162(m) of the Code with respect to awards made to covered employees (as defined
above). If any other provision of the Plan or an award is intended to but does
not comply with, or is inconsistent with, the applicable requirements of Section
162(m) of the Code, such provision shall be construed or deemed amended to the
extent necessary to conform to and comply with such requirements.

The Committee reserves the right to adjust performance goals based on
extenuating business circumstances. In the event that section 162(m) of the Code
applies to awards to covered employees under the Plan, the Committee may not
change the performance goals applicable to or increase the amount of
compensation payable to any covered employee, but nevertheless may reduce the
amount of compensation payable to any covered employee upon the attainment of
any performance goal.

6.       PERFORMANCE FACTOR

Upon the completion of each performance period, the Committee shall determine
the corporate long-term performance factor (which shall not exceed 1.5) that
will be multiplied by the award opportunities to determine the award levels for
the performance period.

The performance factor for the performance period shall be determined generally
using a two-step process. In the first step of the process, the level of
attainment of the performance goals established for the performance period shall
be established. In determining the degree to which such performance goals have
been attained, the Committee may take into consideration changes in corporate
strategy and in the market, economic, tax, and regulatory environments during
the period. As the second step in the process, the Committee may, in its
discretion, adjust the results in step one either positively, or negatively to
reflect such qualitative considerations, as the Committee deems relevant.

No awards to covered employees, to the extent the deduction limits under section
162 (m) of the Code become applicable to remuneration under the Plan, shall be
payable to or vest with respect to, as the case may be, any participant for a
performance period until the Committee certifies in writing that the objective
performance goals (and any other material terms) applicable to such period have
been satisfied.

7.       AWARD OPPORTUNITIES/PAYMENTS/ADJUSTMENTS

The Committee shall determine the award opportunity for each designated
executive position or for any designated executive. The award opportunity shall
be stated as a percentage of salary and shall not be less than 17% or more than
75% of the participant's base salary in effect as of the first May 1 within the
applicable performance period or if later, the participant's first date of
employment or date of promotion to an eligible designated position. The actual
award earned

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under the Plan shall be payable in cash or, to the extent permissible by
applicable law and at the Committee's sole discretion, up to one-half thereof
distributed in shares of stock of the Company. The value of any such stock shall
be determined by the Committee in its sole discretion for the purposes of
Section 7. At the discretion of the Company, stock shall be distributed as of
the first day of a period during which stock could be sold by the participant in
compliance with applicable securities laws but in no event more than six months
following the date the award otherwise would have been paid.

If a participant's employment terminates due to death, permanent disability (as
determined for purposes of the Company's long term disability plan), retirement
on or after age 55 and 5 years of service with the Company or job elimination or
other workforce reduction program (as determined by the Committee), the
participant or the participant's beneficiary will be eligible to receive a
pro-rata portion of the award based on the extent of active participation during
the performance period. Notwithstanding anything to the contrary in the Plan, if
a participant's employment is terminated prior to the date of payment due to a
voluntary resignation or discharge for cause, any rights to an award will be
forfeited. For purposes hereof, "cause" means (i) any conviction or plea of nolo
contendre to a felony, (ii) any willful misconduct, (iii) any willful breach of
any written policy or any confidential or proprietary information, non-compete
or non-solicitation covenant for the benefit of the Company or (iv) habitual or
repeated neglect of duties or responsibilities.

               a)   On a date selected by the Committee (the "Award Date")
                    following the end of a performance period, the Company shall
                    pay each individual who is (a) employed by the Company on
                    such Award Date for such period or (b) terminated employment
                    between the last day of such period and such Award Date by
                    reason of death, permanent disability (as defined for
                    purposes of the Company's long term disability plan),
                    retirement on or after age 55 and 5 years of service with
                    the Company or job elimination or other workforce reduction
                    program (as determined by the Committee), an award equal to
                    his or her award opportunity for such performance period
                    multiplied by the performance factor applicable to such
                    period. Unless otherwise determined specifically by the
                    Committee, the Award Date shall be a day on which senior
                    executives are permitted to sell shares of stock. Further,
                    the Committee may in its sole discretion make an alternative
                    payment in lieu of the award.

               b)   If an individual who is an active participant for at least
                    12 months during any performance period ceases to be an
                    active participant before the end of the period because he
                    or she, although continuing to be employed by the Company
                    until the Award Date for such performance period, ceases to
                    serve in an executive position eligible for participation in
                    the Plan, the Company shall pay such individual on such
                    Award Date a pro-rated award based on the period of active
                    participation during the performance period.

               c)   In the event of the death or permanent disability before the
                    Award Date of an individual described in subsection (b), in
                    its sole discretion the Committee may, at such time prior to
                    such Award Date and in such amount as it may deem
                    appropriate, make an alternative payment in lieu of the
                    award otherwise payable

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          pursuant to subsection (b). Any award paid with respect to a deceased
          participant shall be paid to his or her estate or other successor in
          interest.

Except as otherwise provided in this Section 7, a participant whose active
participation in the Plan ceases before the last day of the performance period,
or whose employment terminates before the Award Date, shall not be entitled to
an award hereunder.

Deferral of Payment of Award. The Committee may allow for deferral of these
awards under a separate deferral plan.

8.  SECURITIES LAW REQUIREMENTS

General. Shares shall not be issued under the Plan unless the issuance and
delivery of such Shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, applicable securities laws in Canada or of any other
foreign jurisdiction, and the regulations of any stock exchange or other
securities market on which the Company's securities may then be traded. The
Company shall not be obligated to file any registration statement, prospectus or
similar document under any applicable securities laws to permit the purchase or
issuance of any Shares under the Plan, and accordingly any certificates for
Shares may have an appropriate legend or statement of applicable restrictions
endorsed thereon. Each Participant and any person deriving its rights from any
Participant shall, as a condition to the purchase or issuance of any Shares
under the Plan, deliver to the Company an agreement or certificate containing
such representations, warranties and covenants as the Company may deem necessary
or appropriate to ensure that the issuance of Shares is not required to be
registered or qualified, as the case may be, under any applicable securities
laws.

9.  CORPORATE TRANSACTIONS

To the extent practicable or at the discretion of the Committee, the awards and
performance periods under the Plan shall continue notwithstanding any Corporate
Transaction (as defined below) involving the Company (including but not limited
to, the continuation or assumption of outstanding awards under the Plan by the
Company (if it is the surviving corporation) or by the surviving corporation or
its parent), except the Committee shall establish a contingent payment for
participants based on a pro-rata amount of their award based on their period of
active participation during the applicable performance period through the date
of the Corporate Transaction and performance to date. If the participant is
terminated for any reason other than for cause, the contingent payment would be
made upon such termination of employment. If the participant remains employed
through the Award date and the actual award earned under the Plan later exceeds
such contingent amount, the Company shall promptly pay an amount equal to the
actual award to the participant in lieu of the contingent amount when awards are
ordinarily payable to participants (including any amounts attributable to the
portion of the performance period following the Corporate Transaction). The
Committee may interpret the provisions of the Plan so as to apply following any
Corporate Transaction. For purposes of the Plan, except as set forth below, a
"Corporate Transaction" means (1) the acquisition of more than 25% of the stock
of the Company by any person or group of affiliated persons (other than the
trustees) on behalf of a Company employee benefit plan; (2) a sale of all or
substantially all of the assets of the

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Company; (3) a merger or other consolidation of the Company with an unaffiliated
company following which shareholders of the Company do not own at least majority
of the outstanding stock issued by surviving corporation; (4) a liquidation or
dissolution of the Company, (5) a majority of the Board shall fail to be
"continuing directors." For purposes hereof, a "continuing director" is any
individual who is a director on the effective date of the Plan or had been
nominated by a majority of the Continuing Directors then in office. Neither the
issuance of capital stock to the "public asset fund" as that term is defined in
Chapter One of the New York State Laws of 2002 nor an initial public offering of
equity securities by the Company (or its permitted assignee) shall be considered
a Corporate Transaction.

10. EFFECTIVE DATE OF PLAN

The Plan is effective as of the date approved by the Board of Directors, July
24, 2002.

11. AMENDMENT AND TERMINATION

The Board may suspend or terminate the Plan, in whole or in part, at any time,
and may from time to time amend the Plan in such respects as the Board may deem
advisable, provided that no such suspension, termination, or amendment shall
have a materially adverse effect on the rights of any participant with respect
to any award that has been made to such participant prior to such amendment,
suspension, or termination.

12. MISCELLANEOUS

     a)   The establishment of the Plan shall not be construed as conferring any
          legal rights upon any participant for a continuation of employment,
          nor shall it interfere with the rights of the Company to discharge a
          participant and treat him or her without regard to the effect which
          such treatment might have upon him or her as a participant in this
          plan.

     b)   The Company shall have the right to deduct from any amounts otherwise
          payable to a participant, whether pursuant to the Plan or otherwise,
          or otherwise collect from the participant, any required minimum
          withholding taxes with respect to benefits under the Plan.

     c)   The Company, in its sole discretion, may assign the Plan and all
          obligations and liabilities hereunder to any parent organization
          without any prior notice to or consent of any participant. In the
          event of any assignment to any such parent organization, such parent
          organization shall be treated as a successor to the Company and shall
          exercise all rights of the Company under the Plan.

     d)   Subject to any applicable law, no benefit under the Plan shall be
          subject in any manner to, nor shall the Company be obligated to
          recognize, any purported anticipation, alienation, sale, transfer
          (otherwise than by will or the laws of descent and distribution),
          assignment, pledge, encumbrance, or charge, any attempt to do so shall
          be void. No such benefit shall in any manner be liable for

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          or subject to garnishment, attachment, execution, or a levy, or liable
          for or subject to the debts, contracts, liabilities, engagements, or
          torts of the participants.

     e)   The Plan shall not be construed as conferring on a participant any
          right, title, interest, or claim in or to any specific asset, reserve,
          account, or property of any kind possessed by the Company. To the
          extent that a participant or any such person acquires a right to
          receive payments from the Company, such rights shall be no greater
          than the rights of a unsecured general creditor.

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