Document:

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                                                                    Exhibit 10.5

                         Empire Blue Cross Blue Shield
                1998-2000 Long-Term Incentive Compensation Plan

1.  Purpose of the Plan

    The purpose of this Empire Blue Cross and Blue Shield 1998-2000 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 (the "Company") that is competitive with that of 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. After March 31, but not
    later than June 30, 1998, 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 March 31, 1998. An individual's active participation shall cease in
    the event that he or she ceases to hold such a designated executive
    position.

4.  Performance Cycle

    The period over which long-term performance shall be measured shall be the
    three-year period performance cycle commencing January 1, 1998 and ending
    December 31, 2000.

5.  Performance Goals

    After March 31 but no later than June 30, 1998, the Committee shall
    establish quantitative performance goals for the performance cycle. Such
    quantitative performance goals shall be based on the Company's rate of
    growth, as measured by such factors as the level of the Company's reserves,
    and on such other quantitative criteria as the Committee may deem
    appropriate. The performance goals for the performance cycle are set forth
    in Appendix A.

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6.  Performance Factor

    On or before March 31, 2001, the Committee shall determine for the
    performance cycle 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 cycle.

    The performance factor for the 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 such 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 include, but shall not
    necessarily be limited to, corporate image, systems quality, and performance
    relative to other Blue Cross and Blue Shield plans and commercial insurers)
    as the Committee deems relevant.

7.  Award Opportunities

    An award opportunity shall be established under the Plan for each designated
    executive position and shall be between 30% and 50% of the salary range
    midpoint for such executive position level as of the first day of the
    performance cycle. A participant's award opportunity shall be based on his
    or her executive position as of March 31, 1998. The schedule of award
    opportunities under the Plan is set forth in Appendix B.

8.  Awards

    (a.)  On a date selected by the Committee (the "Award Date") which shall be
          on or before the March 31 immediately following the end of the
          performance cycle, the company shall pay each individual who (i) was
          an active participant at all times during the last 33 months of such
          performance cycle and (ii) either (A) is employed by the company on
          such Award Date for such cycle or (B) terminated employment between
          the last day of such cycle and such Award Date by reason of
          retirement, death, or permanent disability, an award equal to his or
          her award opportunity for such performance cycle multiplied by the
          performance factor applicable to such cycle.

    (b.)  If an individual with at least thirty-six months of active
          participation in the Plan (including for this purpose active
          participation in the Company's Long-Term incentive Compensation Plan
          adopted in 1996 and 1997) who was an active participant for at least
          12 months during a performance cycle ceases to be an active
          participant before the end of such cycle either (i) because of his or
          her termination of employment by reason of retirement, death, or
          permanent disability or (ii) because he or she, although continuing to
          be employed by the Company until the Award Date for such cycle, ceases
          to serve in an executive position eligible for participation in the
          Plan, the Company shall pay such individual on such Award Date an
          award calculated in accordance with subsection (a), but pro-rated to
          reflect the number of full or partial months of such individual's Plan
          participation during the performance cycle.

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     (c.) In the event of the death 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 pursuant to subsection (b).

     (d.) Except as otherwise provided in this Section 8, a participant whose
          active participation in the Plan ceases before the last day of the
          performance cycle, or whose employment terminates before the Award
          Date, shall not be entitled to an award hereunder.

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

9.   Effectiveness of the Plan

     The Plan is effective as of January 1, 1998.

10.  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.

11.  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 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 no be greater
          than the rights of an unsecured general creditor.

                                       3<PAGE>

                                                                    EXHIBIT 10.6

                          Empire Blue Cross Blue Shield
                 1999-2001 Long-Term Incentive Compensation Plan

1.   Purpose of the Plan

     The purpose of this Empire Blue Cross and Blue Shield 1999-2001 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 (the "Company") that is competitive with that of 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. After March 31, but
     not later than June 30, 1999, 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 April 5, 1999. An individual's active
     participation shall cease in the event that he or she ceases to hold such a
     designated executive position.

4.   Performance Cycle

     The period over which long-term performance shall be measured shall be the
     three-year period performance cycle commencing January 1, 1999 and ending
     December 31, 2001.

5.   Performance Goals

     After March 31 but no later than June 30, 1999, the Committee shall
     establish quantitative performance goals for the performance cycle. Such
     quantitative performance goals shall be based on the Company's rate of
     growth, as measured by such factors as the level of the Company's reserves,
     and on such other quantitative criteria as the Committee may deem
     appropriate. The performance goals for the performance cycle are set forth
     in Appendix A.

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6.   Performance Factor

     On or before March 31, 2002, the Committee shall determine for the
     performance cycle 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 cycle.

     The performance factor for the 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 such 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 include, but shall not necessarily be limited to, corporate image,
     systems quality, and performance relative to other Blue Cross and Blue
     Shield plans and commercial insurers) as the Committee deems relevant.

7.   Award Opportunities

     An award opportunity shall be established under the Plan for each
     designated executive position and shall be between 30% and 50% of the
     salary range midpoint for such executive position level as of the first day
     of the performance cycle. A participant's award opportunity shall be based
     on his or her executive position as of April 5, 1999. The schedule of award
     opportunities under the Plan is set forth in Appendix B.

8.   Awards

     (a.) On a date selected by the Committee (the "Award Date") which shall be
          on or before the March 31 immediately following the end of the
          performance cycle, the company shall pay each individual who (i) was
          an active participant at all times during the last 33 months of such
          performance cycle and (ii) either (A) is employed by the company on
          such Award Date for such cycle or (B) terminated employment between
          the last day of such cycle and such Award Date by reason of
          retirement, death, or permanent disability, an award equal to his or
          her award opportunity for such performance cycle multiplied by the
          performance factor applicable to such cycle.

     (b.) If an individual with at least thirty-six months of active
          participation in the Plan (including for this purpose active
          participation in the Company's Long-Term Incentive Compensation Plan
          adopted in 1997 and 1998) who was an active participant for at least
          12 months during a performance cycle ceases to be an active
          participant before the end of such cycle either (i) because of his or
          her termination of employment by reason of retirement, death, or
          permanent disability or (ii) because he or she, although continuing to
          be employed by the Company until the Award Date for such cycle, ceases
          to serve in an executive position eligible for participation in the
          Plan, the Company shall pay such individual on such Award Date an
          award calculated in accordance with subsection (a), but pro-rated to
          reflect the number of full or partial months of such individual's Plan
          participation during the performance cycle.

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     (c.)   In the event of the death 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 pursuant to subsection (b).

     (d.)   Except as otherwise provided in this Section 8, a participant whose
            active participation in the Plan ceases before the last day of the
            performance cycle, or whose employment terminates before the Award
            Date, shall not be entitled to an award hereunder.

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

9.   Effectiveness of the Plan

     The Plan is effective as of January 1, 1999.

10.  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.

11.  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
            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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