Document:

R-1 $

CUSIP:

ASSOCIATES CORPORATION OF NORTH AMERICA

FLOATING RATE SENIOR NOTE DUE OCTOBER 5, 2001

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY.  THIS GLOBAL SECURITY IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE ONLY IN THE LIMITED

CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN
SUCH LIMITED CIRCUMSTANCES.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
"DEPOSITARY") TO THE COMPANY OR ITS AGENT FOR THE REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

PRINCIPAL AMOUNT:  $

MATURITY DATE:    October 5, 2001

DATED DATE:   April 5, 2000

INTEREST PAYMENT DATES: July 5 and October 5, 2000 and January 5, April 5 and July 5, 2001 and at Maturity

REGULAR RECORD DATES: Close of business on the Business Day immediately preceding any Interest Payment Date

LIBOR CALCULATION AGENT:   The Chase Manhattan Bank

ASSOCIATES CORPORATION OF NORTH AMERICA, a Delaware corporation (the "Company", which term includes any successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Cede & Co., or registered assigns, the principal amount set forth on the face hereof on the Maturity Date set forth on the face hereof, and to pay interest thereon, at the interest
rates determined in the manner described below, from the Dated Date hereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for, on the Interest Payment Dates set
forth on the face hereof and at Maturity, until the principal hereof has been paid or made available for payment.  The interest so payable, and punctually paid or provided for, on any Interest Payment Date will,
as provided in the Indenture (as hereinafter defined), be paid to the Person in whose name this Note (or one or more Predecessor Securities as defined in said Indenture) is registered at the close of business on
the Regular Record Date for such interest as set forth on the face hereof (whether or not a Business Day, as hereinafter defined), as the case may be, next preceding such Interest Payment Date; provided,
however, interest payable at Maturity will be payable to the Person to whom the principal hereof shall be payable.  Any such interest which is payable, but is not punctually paid or duly provided for on any
Interest Payment Date, shall forthwith cease to be payable to the registered Holder on such Regular Record Date, and may be paid to the Person in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on a record date ("Special Record Date") not less than 10 days prior to the date fixed by the Trustee for payment of such defaulted interest, notice of which Special Record
Date shall be given to Holders of Notes not less than 15 days prior to such record date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on
which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. Payment of the principal of and interest on this Note will be made at the
office or agency of the Company maintained for that purpose at the Corporate Trust Office of the Trustee, or, at the option of the Holder, at the office or agency of the Company maintained for that purpose in
the Borough of Manhattan, The City of New York, or at such additional offices or agencies maintained for such purpose as the Company may from time to time designate, in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that (i) payment of interest will be made (subject to collection) by check mailed to the
address of the Person entitled thereto as such address shall appear on the Securities Register or, if appropriate wire transfer instructions have been received in writing by the Trustee at its Corporate Trust Office
or at its corporate trust facility in the Borough of Manhattan, The City of New York, not later than five Business Days prior to the record date for an applicable Interest Payment Date, by wire transfer of
immediately available funds; (ii) payment of principal hereof at Maturity and any interest due upon Maturity will be made in immediately available funds upon surrender of this Note at the Corporate Trust
Office of the Trustee or at the corporate trust facility of the Trustee located in the Borough of Manhattan, The City of New York, or at such additional offices or agencies maintained for such purpose as the
Company may from time to time designate; and (iii) notwithstanding the foregoing, if indicated on the face hereof that this Note is a Global Security, payments in respect of the Notes (including principal and
interest) will be made by wire transfer of immediately available funds to the account of the Depositary as specified by the Depositary.

This Note is one of a duly authorized issue of debentures, notes or other evidences of indebtedness (hereinafter called the "Securities") of the Company of the series hereinafter specified, which series is limited
in aggregate principal amount to $500,000,000, all such Securities issued and to be issued under an indenture dated as of November 1, 1995 (hereinafter called the "Indenture"), between the Company and The
Chase Manhattan Bank, as Trustee (the "Trustee"), to which Indenture and all indentures supplemental thereto reference is hereby made for a specification of the rights and limitation of rights thereunder of the
Holders of the Securities and of the rights, obligations, duties and immunities of the Trustee and of the Company. As provided in the Indenture, the Securities may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest, if any, at different rates, may be subject to different redemption provisions, if any, may be
subject to different sinking, purchase or analogous funds, if any, may be subject to different covenants and Events of Default and may otherwise vary as in the Indenture provided or permitted. This Note is one
of a series of the Securities designated therein as Floating Rate Senior Notes due October 5, 2001 (the "Notes").

The Notes may not be redeemed prior to their stated Maturity and will not be subject to any sinking fund.

Interest on the Notes will be payable on July 5 and October 5, 2000 and January 5, April 5 and July 5, 2001 (each an "Interest Payment Date"), and at Maturity, if any, during such period, except that if any such
Interest Payment Date falls on a day that is not a Business Day (as defined below), such Interest Payment Date will be postponed to the next day that is a Business Day unless it would thereby fall into the next
calender month, in which event such Interest Payment Date shall be brought forward to the immediately preceding Business Day.

The rate of interest for each Interest Period (as defined below) is the Three-Month LIBOR Rate.  Such rate of interest shall be determined for each Interest Period on the second London Banking Day (as defined
below) preceding the relevant Reset Date (as defined below).

The "Three-Month LIBOR Rate" for an Interest Period means a rate equal to the Floating Rate (as defined in the ISDA Definitions) that would be determined by the LIBOR Calculation Agent (as defined
below) under an interest rate swap transaction if the LIBOR Calculation Agent were acting as Calculation Agent (as defined in the ISDA Definitions) for that swap transaction under the terms of an agreement
incorporating the ISDA Definitions and under which:

(i) the Floating Rate Option (as defined in the ISDA Definitions) is USD-LIBOR-BBA;

(ii) the Designated Maturity (as defined in the ISDA Definitions) is three months; and

(iii) the Reset Date (as defined in the ISDA Definitions) is the first day of that Interest Period.

Interest on the Notes will be paid to the persons in whose names the Notes are registered at the close of business on the Business Day immediately preceding any Interest Payment Date; provided, however, that
interest payable at Maturity will be payable to the persons to whom the principal of such Notes shall be payable.  

Interest payments for the Notes shall be the amount of interest accrued from the date of issue or from the last date to which interest has been paid to, but excluding, the Interest Payment Date or Maturity, as the
case may be.  Interest is computed by dividing the actual number of days in the Interest Period by 360.

"Business Day" means any day that is not a Saturday or Sunday, and that, in The City of New York, is not a day on which banking institutions are generally authorized or obligated by law to close.

"Interest Period" means (i) the period from and including April 5, 2000, to but excluding the first Interest Payment Date, and (ii) each successive period from and including an Interest Payment Date, to but
excluding the next Interest Payment Date or at Maturity, as the case may be.

"ISDA Definitions" means the 1991 ISDA Definitions, as amended and updated as of the date hereof, published by the International Swaps and Derivatives Association, Inc.

"London Banking Day" means any day on which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in London, England.

"USD-LIBOR-BBA" means that the rate for a Reset Date will be the rate for deposits in U.S. Dollars for a period of the Designated Maturity which appears on the Telerate Page 3750 as of 11:00 a.m., London
time, on the day that is two London Banking Days preceding that Reset Date.  If such rate does not appear on the Telerate Page 3750, the rate for that Reset Date will be determined as if the parties had specified
"USD-LIBOR-Reference Banks" as the applicable Floating Rate Option.  "USD-LIBOR-Reference Banks" means that the rate for a Reset Date will be determined on the basis of the rates at which deposits in
U.S. Dollars are offered by the Reference Banks (as defined in the ISDA Definitions) at approximately 11:00 a.m., London time, on the day that is two London Banking Days preceding that Reset Date to prime
banks in the London interbank market for a period of the Designated Maturity commencing on that Reset Date and in a Representative Amount (as defined in the ISDA Definitions).  The LIBOR Calculation
Agent will request the principal London office of each of the Reference Banks to provide a quotation of its rate.  If at least two such quotations are provided, the rate for that Reset Date will be the arithmetic
mean of the quotations. If fewer than two quotations are provided as requested, the rate for that Reset Date will be the arithmetic mean of the rates quoted by major banks in New York City, selected by the
LIBOR Calculation Agent, at approximately 11:00 a.m., New York City time, on that Reset Date for loans in U.S. Dollars to leading European banks for a period of the Designated Maturity commencing on that
Reset Date and in a Representative Amount.

The Chase Manhattan Bank shall be the initial LIBOR Calculation Agent with respect to the Notes.  The LIBOR Calculation Agent will notify the Company and the Trustee of each determination of the interest
rate applicable to the Notes promptly after such determination is made.  The Trustee will, upon the request of the Holder of any Note, provide the interest rate then in effect and, if different, the interest rate
which will become effective as a result of determination made with respect to the most recent Reset Date with respect to such Note.  The Trustee will not be responsible for determining the interest rate
applicable to any Note.

If an Event of Default with respect to the Notes, as defined in the Indenture, shall occur and be continuing, the principal of all the Notes may be declared due and payable in the manner and with the effect
provided in the Indenture.

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities under
the Indenture at any time by the Company with the consent of the Holders of 66 2/3% in aggregate principal amount of the Securities at the time outstanding, as defined in the Indenture, of each series of
Securities to be affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities of any series at the time Outstanding, as
defined in the Indenture, on behalf of the Holders of all the Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences with respect to such series. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest
on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

As provided in the Indenture and subject to certain limitations therein set forth, this Note is transferable on the Securities Register of the Company, upon surrender of this Note for registration of transfer at the
office or agency of the Company to be maintained for that purpose at the Corporate Trust Office of the Trustee, or the office or agency of the Company to be maintained for that purpose in the Borough of
Manhattan, The City of New  York, or at such additional offices or agencies maintained for such purpose as the Company may from time to time designate, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Securities Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of
authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

If indicated on the face hereof that this Note is a Global Security, it is exchangeable, in whole but not in part, for Notes registered in the names of Persons other than the Depositary or its nominee or in the name
of a successor to the Depositary or a nominee of such successor depositary only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Note and a successor
depositary is not appointed by the Company within 90 days of the receipt by the Company of such notice or of the Company becoming aware of such ineligibility, or (ii) the Company in its sole discretion at any
time determines not to have all of the Notes represented by one or more Global Security or Securities.  If this Note is exchangeable pursuant to the preceding sentence, it shall be exchangeable for Notes of like
tenor and terms in definitive form in aggregate principal amount equal to the principal amount of the Global Security; provided, that the Company shall exchange all the Global Securities representing the Notes
in such manner.  Subject to the foregoing, if this Note is a Global Security it is not exchangeable, except for a Note or Notes of the same aggregate denominations to be registered in the name of such Depositary
or its nominee or in the name of a successor to the Depositary or a nominee of such successor depositary.  If not indicated on the face hereof that this Note is a Global Security, this Note is exchangeable for a
like aggregate principal amount of Notes of a different authorized denomination, as requested by the Holder surrendering the same, as provided in the Indenture and subject to certain limitations therein set forth.

The Notes are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple of $1,000.

No service charge shall be made for any such transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the
registration of such transfer or exchange, other than certain exchanges not involving any transfer.

Certain terms used in this Note which are defined in the Indenture have the meanings set forth therein.

THIS NOTE SHALL FOR ALL PURPOSES BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

The Company, the Trustee and any agent of the Company or the Trustee may treat the person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal as of the Dated Date set forth on the face hereof.

		ASSOCIATES CORPORATION OF NORTH AMERICA
	[Seal]	
		By: _____________________________
		Senior Vice President

Attest:

______________________

Assistant Secretary

 Unless the certificate of authentication hereon has been executed by The Chase Manhattan Bank, the Trustee under the Indenture, or its successor thereunder, by the manual signature of one of its authorized
signatories, this Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

 TRUSTEE'S CERTIFICATE OF AUTHENTICATION

 This is one of the Securities of the series provided for under the within-mentioned Indenture.

Dated:

 THE CHASE MANHATTAN BANK,

 as Trustee

 By: _____________________________

 Authorized Officer

[FORM OF ASSIGNMENT]

ABBREVIATIONS

 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations.

 TEN COM -- as tenants in common

 TEN ENT -- as tenants by the entireties

 JT TEN -- as joint tenants with right of survivorship and not as

 tenants in common

UNIF GIFT MIN ACT -- ____________ Custodian _______________

 (Cust) (Minor)

under Uniform Gifts to Minors Act _____________________________

 (State)

 Additional abbreviations may also be used though not in the above list.

 ______________________________

 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

Please insert Social Security or Other Identifying Number of Assignee ____________________________

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

_______________________________________________________________

_______________________________________________________________

the within Note of Associates Corporation of North America and all rights thereunder, hereby irrevocably constituting and appointing

______________________________________________ Attorney to transfer said Note on the books of the Company, with full power of substitution in the premises.

Dated: ___________________________

 _____________________________________

 _____________________________________

 Notice: The signature to this assignment must correspond with the name as written on the face of the within instrument in every particular, without alteration or enlargement, or any change whatever.EMPLOYMENT AGREEMENT

		The Employment Agreement ("Agreement"), dated as of October 1, 1999, is
made by and between Maxicare Health Plans, Inc., a Delaware corporation
(the "Company"),and Alan Bloom, an individual ("Employee").

RECITALS
This Agreement is made in consideration of Employee"s desire to enter the
employ or continue in the employ of the Company, and the Company desires
that employee be so employed.
		1.	Definitions.   As used in this Agreement, the following capitalized terms
shall have the following meanings, unless otherwise expressly provided or
unless the context otherwise requires:
			(a)	"Board of Directors" means the Board of Directors of the
Company.
			(b)	"Cause" means, as used with respect to the involuntary
termination of Employee:
				(i)	Any breach by Employee of this Agreement;
				(ii)	The material or continuous failure of Employee to perform
his job duties to the Company's satisfaction, whether by reason of his
inability, refusal or otherwise;
				(iii)	Employee's willfully causing the Company, whether by
action or inaction, to violate any state or federal law, rule or regulation;
				(iv)	The engaging by Employee in misconduct or inaction
detrimental to the Company's business or reputation and/or which exposes the
Company to liability based upon the inaction or action(s) of Employee;
(v) The conviction of Employee for a felony or of a crime
involving moral turpitude;
<PAGE>
				(vi)	Any act of dishonesty, misconduct, disloyalty, fraud,
insubordination or misappropriation of confidential information in connection
with Employee's employment with the Company or the satisfaction of his
obligations hereunder; or
				(vii)	Any breach or violation of the Company's Policies and
Procedures Manual (the "Policies Manual") as in effect from time to time
which would warrant termination pursuant to the terms of such Policies Manual.
			(c)	"Incapacity" means the absence of the Employee from his
employment or the inability of Employee to perform his essential job duties
with reasonable accommodations on a full-time basis by reason of mental or
physical illness, disability or incapacity for a period of thirty (30)
consecutive days.
		2.	Employment, Services and Duties.   The Company hereby employs Employee
as Senior Vice President of General Counsel, or such title designation as the
Company,  acting through the Company's Chief Executive Officer,  or the
Company's Chief Operating Officer  may from time to time direct
(collectively, the "Supervisor").  Employee shall report to and be supervised
by the Supervisor or such other person as the Supervisor
may designate  and shall have such duties and responsibilities as the
Supervisor may designate.
		3.	Acceptance of Employment.   Employee hereby accepts employment and
agrees to devote his full time with the Company's business and shall not be
involved in any activities whatsoever which interfere with Employee's:
(1) employment with the Company;
(2) satisfaction of Employee's obligations on behalf of the Company pursuant
to the terms of this Agreement; or (3) activities on behalf of the Company in
the discharge of his duties during the Company's business hours.
		4.	Obligation to Other Employers.   Employee represents that his
employment with the Company does not conflict with any obligations he may
have with former employers or any other persons or entities.
Employee specifically represents that he
<PAGE>
has not brought to the Company (and will not bring to the Company) any
materials or documents of a former employer, or any confidential information
or property of a former employer.

		5.	Compensation.   As compensation for all services to be rendered by
Employee hereunder, the Company shall pay to Employee a base salary at the
rate of $230,000.00 per annum through December 31, 1999,  with such increases
as may be determined from time to time by the Supervisor in his sole
discretion and, if applicable, subject to the approval of the Board of
Directors for the period January 1, 2000 through December 31, 2000 (the
"Base Salary").  Said Base Salary shall be payable in bi-weekly
installments or in such other installments as the Company may from time to
time pay other similarly situated employees.
		6.	Benefits.   In addition to the compensation provided for in Section 5 of
this Agreement, Employee shall have the right to participate in any
profit-sharing, pension, life, health and accident insurance, or other
employee benefits presently adopted or which hereafter may be adopted by the
Company in a manner comparable to those offered or available to other
employees of the Company who are similarly situated where such plans or
programs are available to all such similarly situated employees pursuant to
their terms. Nothing contained herein, shall require that the Company's
Board of Directors designate the Employee as a participant in any new plan
or program where the Board, in its sole discretion, chooses to designate
participants or qualifications for any new or additional program.  Except
as set forth above, the Company reserves the right to add, terminate and/or
amend any existing plans, policies, programs and/or arrangements during the
term of this Agreement without any obligation to the Employee hereunder.
Employee shall also be entitled to twenty (20) days annual vacation time,
during which time his compensation will be paid in full.  Unused vacation days
at the end of any pay period(s) may be carried over to subsequent pay
period(s), provided that the cumulative number of vacation days accruing
from and after the date of this Agreement
<PAGE>
carried over into any subsequent pay period shall not exceed twenty  (20)
days.  Employee shall not accrue additional vacation days during any pay
period once the total number of accumulated vacation days equals twenty (20)
days.  However, solely in the event Employee, pursuant to the Company policy,
has accrued in excess of twenty (20) vacation days prior to the date of this
Agreement ("Excess Vacation Days"), Employee shall be entitled to carry over
up to, but not in excess of, such  amount of Excess Vacation Days from pay
period to any subsequent pay period.  Notwithstanding the foregoing, Employee
shall not be entitled to, nor shall accrue any new vacation days during any
pay period in which Employee has Excess Vacation Days.  In the event
Employee reduces the amount of Excess Vacation Days in any year through the
utilization of more than twenty (20) vacation days in such year, Employee
shall not be entitled to the restoration of such Excess Vacation Days through
the utilization of less than twenty (20) vacation days in any subsequent year
and pay period.  Employee shall under no circumstances be entitled to cash
in lieu of vacations days, except in the event of Employee's termination of
employment with the Company.
		7.	Expenses.   The Company shall reimburse Employee for all reasonable
travel, hotel, entertainment and other expenses incurred by Employee in the
discharge of Employee's duties hereunder, in accordance with Company policy
regarding same, only after receipt from Employee of vouchers, receipts or
other reasonable substantiation of such expenses acceptable to the Company.
		8.	Term of Employment.   The term of this Agreement and Employee's
employment shall be for a period of fifteen months, commencing on October 1,
1999 and terminating on December 31, 2000 (the "Expiration Date") unless
otherwise extended or sooner terminated as provided for in this Agreement.
Employee's employment with the Company pursuant to this Agreement shall
terminate prior to the Expiration Date upon the occurrence of any of the
following events:
	<PAGE>
		(a)	The death of Employee;
			(b)	Employee voluntarily leaves the employ of the Company;
			(c)	The Incapacity of Employee;
			(d)	The Company terminates this Agreement for Cause;
			(e)	The Company terminates this Agreement for any reason other
than set forth in Sections 8(a), 8(c) or 8(d) hereof; or
			(f)	The appointment of a trustee for the Company for the purpose of
liquidating and winding up the Company pursuant to Chapter 7 of the Federal
Bankruptcy Code.
		9.	Compensation Upon Termination.   In the event this Agreement is
terminated pursuant to Section 8, the Company shall pay to Employee his then
current Base Salary, prorated through the Employee's last day of employment
with the Company (the "Termination Date") and solely those additional
bonuses that had been declared or fully earned by Employee prior to such
termination, but had not yet been  received ("Earned Bonuses"), and any
accrued vacation through the Termination Date pursuant to Section 6
(the "Termination Pay").  Except as set forth below, all employment
compensation and benefits shall cease as of the Termination Date.  In
addition to the foregoing:
			(a)	In the event that such termination arises under Section 8(a),
Employee's estate shall be entitled to receive severance compensation equal
to such amount of Employee's then current Base Salary as would have been
over an additional thirty (30) day period;
			(b)	Employee recognizes that this Agreement and Employee's employment
with the Company may be terminated at any time by the Company prior to the
Expiration Date "without cause" and nothing contained herein shall require
that the Company continue to employ the Employee until the Expiration Date;
notwithstanding the foregoing, if prior to the Expiration Date of this
Agreement or prior to its termination pursuant to Sections 8(a) - 8(d)
or 8(f) hereof or this, this Agreement is terminated pursuant
<PAGE>
to Section 8(e) above, the Employee shall: (y) receive the greater of either:
(i) his then current Base Salary through the Expiration Date of the Agreement
or (ii) six  (6) months Base Salary when such payments would have otherwise
been paid had Employee's employment with the Company continued
(the "Severance Salary"); and (z) be entitled to continue to receive through
the Expiration Date solely the health, dental, disability and life
insurance benefits that Employee was receiving or participating in pursuant
to Section 6 immediately prior to such termination, as though such
termination had not occurred.  If the Company is unable to continue such
benefits, the Company shall obtain or reimburse Employee for all costs
actually incurred by the Employee to obtain substantially equivalent
benefits (the "Severance Benefits").  The Severance Benefits shall be
provided to Employee as and when such amounts or benefits would have been
paid to Employee had such termination not occurred until the first to occur
of: (1) the Expiration Date, (2) Employee's Death, or (3) until such time as
Employee obtains other employment which offers any of such benefits to its
employees of similar stature with the Employee.  In the event any comparable
benefit obtained or available to the Employee in his new employment is less
than such Severance Benefits being provided pursuant to this Section 9, the
Company will provide for or pay the monetary costs of obtaining such
additional benefits necessary to provide substantially similar overall
benefits.  The Severance Salary and the Severance Benefits are hereinafter
collectively referred to as the "Severance Compensation".

THE SEVERANCE COMPENSATION IN THIS SUBSECTION 9(b) SHALL BE PAID
OR MADE AVAILABLE TO EMPLOYEE AS LIQUIDATED DAMAGES FOR ALL
CLAIMS EMPLOYEE WOULD HAVE WITH RESPECT TO: (i) THE TERMINATION
OF THIS AGREEMENT OR THE TERMINATION OF EMPLOYEE'S EMPLOYMENT
UPON THE EXPIRATION OF THIS AGREEMENT; (ii) ANY COMPENSATION OR
BENEFITS DUE EMPLOYEE FROM THE COMPANY PURSUANT TO THIS
AGREEMENT AND (iii) THE INJURY TO EMPLOYEE'S REPUTATION AS A
<PAGE>
RESULT OF ANY TERMINATION OF THIS AGREEMENT OR TERMINATION OF
EMPLOYMENT UPON THE EXPIRATION OF THIS AGREEMENT.  IN
CONNECTION THEREWITH, THE PARTIES AGREE THAT IT WOULD BE
IMPRACTICAL AND EXTREMELY DIFFICULT TO FIX THE ACTUAL AMOUNT OF
SUCH DAMAGES AND CLAIMS DUE EMPLOYEE WITH RESPECT THERETO AND
THAT SUCH SEVERANCE COMPENSATION AND/OR TERMINATION PAY SHALL
CONSTITUTE A REALISTIC AND REASONABLE VALUATION OF THE DAMAGES
WITH RESPECT TO EMPLOYEE'S CLAIMS.
		(c)	Except as otherwise provided in Section 9(a) or (b) above, all other
compensation and benefits enjoyed by or due to Employee as part of Employee's
employment with Employer shall cease as of the Termination Date; including
but not limited to any rights to office or parking space, vacation or sick
pay, use of telephones, Xeroxing or Facsimile equipment, secretarial
assistance, any unpaid bonus (other than Earned Bonuses), all benefits
and/or rights pursuant to Section 6 above and the right to receive grants
of any stock options which have not previously been granted to employee or,
except as expressly provided in any applicable stock option agreement or
plan, vesting in any stock options previously granted to Employee which have
not vested as of the Termination Date.
		(d)	In the event Employee does not receive, on or before the Expiration
Date, an offer for a new employment agreement but nevertheless continues as
an employee of the Company after the Expiration Date, Employee shall be
thereafter deemed to be an "at will employee" who may be terminated by
the Company at any time.  In the event Employee's employment with the
Company is terminated while Employee is an "at will employee", Employee
shall be entitled to only those severance benefits, if any, which are in
accordance with the Company's then existing Policies Manual or other
written personnel policies.  Employee acknowledges and understands that in
such event, Employee will no longer be entitled to the Severance
Compensation set forth herein.
<PAGE>
(e)	All payments of Severance Compensation shall be made when such
payments would have been made had this Agreement not been terminated and all
Severance Benefits, Severance Salary and Termination Pay shall be paid or
provided subject to the usual withholdings, including state and federal taxes.

10.	Covenant Not to Compete.
			(a)	Employee covenants and agrees that, during Employee's
employment with the Company pursuant to this Agreement, Employee will not,
directly or indirectly, own, manage, operate, join, control or become
employed by, or render any services  of any advisory nature or otherwise,
or participate in the ownership, management, operation or control of, any
business which competes with the business of the Company or any of its
affiliates.
			(b)	Notwithstanding the foregoing, Employee shall not be prevented
from investing his assets in such form or manner as will not require any
services on the part of Employee in the operation of the affairs of a
company in which investments are made, provided such company is not engaged
in a business competitive to the Company, or if it is in competition with
the Company, provided its stock is publicly traded and Employee owns
less than one percent (1%) of the outstanding stock of that company.

<PAGE>
		11.	Trade Secrets.   The  parties  acknowledge and agree that the identity
of
Company's customers and information which Company has acquire or may acquire
concerning those customers, their service and product requirements, financial
information, pricing information, costs and personnel required for performance
of such services are valuable trade secrets.  In addition, the parties agree
that information concerning Company that reasonably relates to the business
of Company and which has not been publicly released by duly authorized
representatives of Company, including but not limited to marketing and sales
plans, proposals, financial information, costs, pricing information and
formulae, is also a valuable trade secret.
12.	Confidentiality.   Employee covenants and agrees that he will not at
any time during or after the termination of his employment by the Company,
without the Company's expressed written consent,  reveal, divulge or make
known to any person, firm or corporation any information, knowledge or data
of a proprietary nature relating to the business of the Company or any of
its affiliates which is not or has not become generally known or public.
Employee shall hold, in a fiduciary capacity, for the benefit of the
Company, all information, knowledge or data of a proprietary nature, trade
secret or confidential information with respect to the Company which was
disclosed to Employee as a result of or in connection with Employee's
employment with the Company, including but not limited to information with
respect to product lines, provider and employer group contracts or
arrangements, software utilized or developed by or for the Company, financial
information, marketing information, pricing information, costs
and the personnel required for performance of service, marketing and sales
plans, overhead costs, medical loss ratios, claims processing, customer
services and underwriting information, or any other confidential information
concerning Company that reasonably relates to the business of Company and
which has not been publicly
<PAGE>
released by duly authorized representatives of Company (collectively
"Proprietary Information").  Employee  recognizes and acknowledges that all
such Proprietary Information is a valuable and unique asset of the Company,
and accordingly he will not discuss or divulge any such Proprietary
Information to any person, firm, partnership, corporation or organization
other than to the Company, its affiliates, designees, assignees or
successors or except as may otherwise be required by the law, as ordered
by a court or other governmental body of competent jurisdiction, or in
connection with the business and affairs of the Company.
		13.  Acquisition Through Employment.  In accordance with applicable law,
everything which Employee acquires by virtue of Employee's employment,
including without limitation, property, inventions, copyrights,  patents,
documents or writings, except Employee's compensation, belongs to Company.
 Employee agrees that following the termination of employment, Employee
will return to Company all property of Company, including without
limitation thereto, the original and all copies of any documents which
relate to or were prepared in the course of Employee's employment,
including without limitation thereto, contracts, proposals or any
information concerning the identity of customers, services provided by
Company and the pricing of such services.

		14.	Equitable Remedies.   In the event of a breach or threatened breach
by Employee of any of his obligations under Sections 10 through 13 of this
Agreement, Employee acknowledges that the Company may not have an adequate
remedy at law and therefore it is mutually agreed between Employee and the
Company that, in addition to any other remedies  at law or in equity which
the Company may have, the Company shall be entitled to seek in a court of
law and/or equity a temporary and/or permanent injunction restraining
Employee from any continuing violation or breach of this
Agreement.
<PAGE>
		15.	Miscellaneous.
			(a)	This Agreement shall be binding upon and inure to the benefit
of the Company and any successor of the Company.  Except as set forth in
Section 8(f) above, this Agreement shall not be terminated by the voluntary
or involuntary dissolution of the Company or by any merger, reorganization
or other transaction in which the Company is not the surviving or resulting
corporation or upon any transfer of all or substantially all of the assets
of the Company in the event of any such merger, or transfer of assets.
The provisions of this Agreement shall be binding upon and shall inure
to the benefit of the surviving business entity or the business entity to
which such assets shall be transferred in the same manner and to the same
extent that the Company would be required to perform it if no such
transaction had taken place.  	Neither this Agreement nor any rights arising
hereunder may be assigned or pledged by Employee.
			(b)	Except as otherwise provided by law or elsewhere herein, in
the event of an act of force majeure, as hereinafter defined, during the term
hereof which event continues for a period of no less than fifteen (15) days,
the Company shall be entitled to suspend this Agreement for the duration of
such event of force majeure.  In such event, during the duration of the event
of force majeure the Company shall be relieved of its obligations to the
Employee pursuant to Sections 5 and 6; except for the continuation of any
health, life or disability insurance coverage.  For the purposes hereof,
"force majeure" shall be defined as the occurrence of one or more of the
following events:
				(i)	any act commonly understood to be of force majeure which materially
and adversely affects the Company's business and operations, including
but not limited to, the Company having sustained a material loss, whether
or not insured, by reason of fire, earthquake, flood, epidemic, explosion,
accident, calamity or other act of God;
<PAGE>
				(ii)	any strike or labor dispute or court or government
action, order or decree;

				(iii)	a banking moratorium having been declared by federal
or state authorities;
				(iv)  	An outbreak of major armed conflict, blockade,
embargo, or  other international hostilities or restraints or orders of civic,
civil defense, or military authorities or other national or international
calamity having occurred;
				(v)	any act of public enemy, riot or civil disturbance or
threat thereof; or
				(vi)	a pending or threatened legal or governmental
proceeding or action relating generally to the Company's business, or a
notification having been received by the Company of the threat of any such
proceeding or action, which could materially adversely affect the Company.
			(c)	Except as expressly provided herein, this Agreement contains
the entire understanding between the parties with respect to the subject
matter hereof, and may not be modified, altered or amended except by an
instrument in writing signed by the parties hereto.  This Agreement supersedes
all prior agreements of the parties with respect to the subject matter
hereof.
			(d)	This Agreement shall be construed in accordance with the
laws of the State of California applicable to agreements wholly made and to
be performed entirely within such state and without regard to the conflict
of law principles thereof.
			(e)	Nothing in this Agreement is intended to require or shall be
construed as requiring the Company to do or fail to do any act in violation
of applicable law.  The Company's inability pursuant to court order to
perform its obligations under this Agreement shall not constitute a breach
of this Agreement.  If any provision of this Agreement is invalid or
unenforceable, the remainder of this Agreement shall nevertheless remain
in full force and effect.  If any provision is held invalid or
<PAGE>
unenforceable with respect to particular circumstances, it shall,
nevertheless, remain in full force and effect in all other circumstances.
			(f)	With the exception of the Company's right to enforce the
provisions found in Sections 10 through 13 of this Agreement pursuant to
Section 14 hereof, any and all disputes arising from Employee's employment
with or termination from the Company including but not limited to any claim
for unlawful retaliation, wrongful termination of employment, violation of
public policy or unlawful discrimination or harassment because of race,
color, sex, national origin, religion, age, physical or mental disability
or condition, marital status, sexual orientation or other legally protected
characteristic shall be resolved by final and binding arbitration before a
single arbitrator.  EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE
PARTIES AGREE THAT IF A DISPUTE OR CLAIM OF ANY KIND ARISES
BETWEEN THEM, THEY AGREE TO WAIVE ANY RIGHTS EACH MAY HAVE
TO A JURY OR COURT TRIAL.
		Any party hereto electing to commence an action shall give written notice
to the other parties hereto of such election.  The arbitrator shall be
limited to an award of monetary damages and shall conduct the arbitration
in accordance with the California Rules of Evidence.  The dispute shall
be settled by arbitration to take place in Los Angeles County, California,
in accordance with the then rules of the American Arbitration Association
or its successor.  The award of such arbitrator may be confirmed
or enforced in any court of competent jurisdiction.  The costs and expenses
of the arbitrator including the attorney's fees and costs of each of the
parties, shall be apportioned between the parties by such arbitrator based
upon such arbitrator's determination of the merits of their respective
positions.  Nothing contained in this Section shall in any way be construed
to modify, expand or otherwise alter the rights and obligations of the
Company and Employee contained elsewhere in this Agreement.
<PAGE>
			(g)	Any notice to the Company required or permitted hereunder
shall be given in writing to the Company, either personally, by messenger,
courier or otherwise, telex, telecopier or, if by mail, by registered or
certified mail, return receipt requested, postage prepaid, duly addressed
to the Secretary of the Company at its then principal place of business.

Any such notice to Employee shall be given to the Employee in a like manner,
and if mailed shall be addressed to Employee at Employee's home address then
shown in the files of the Company.  For the purpose of determining compliance
with any time limit herein, a notice shall be deemed given on the fifth day
following the postmarked date, if mailed, or the date of delivery if
delivered personally, by telex or telecopier.

			(h)	Employee acknowledges that: (i) he has been advised by the Company
that this Agreement affects his legal rights and to seek the advice of
his legal counsel prior to executing it and (ii) has had the opportunity
to consult with his own legal counsel in connection with the negotiations
of the terms of this Agreement, his rights with respect hereto and the
execution hereof.
			(i)	A waiver by either party of any term or condition of this
Agreement or any breach thereof, in any one instance, shall not be deemed or
construed to be a waiver of such term or condition or of any subsequent
breach thereof.
			(j)	The section and subsection headings contained in this Agreement are
solely for convenience and shall not be considered in its interpretation.
			(k)	This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first written above.
					COMPANY:
						MAXICARE HEALTH PLANS, INC.
						a Delaware corporation

						By:
	___________________________________
							Paul R. Dupee, Jr.
							Chairman of the Board and
							Chief Executive Officer

	By:____________________________________
							Richard A. Link
							Chief Operating Officer
							Chief Financial Officer

					EMPLOYEE:

						By:
	___________________________________
							 Alan Bloom

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