AMVESTORS FINANCIAL CORPORATION

April 27, 1995

Mr. Mark Heitz, President
AmVestors Financial Corporation
415 S.W. Eighth Avenue
Topeka, Kansas  66603

RE: 1995 Special Incentive Bonus Agreement

Dear Ralph:

Recently, the Board of Directors of AmVestors Financial Corporation 
("Corporation") resolved to allow you to participate in the 1995 Special 
Incentive Bonus Arrangement ("Arrangement"). This letter outlines the terms 
of the Arrangement which could, in the event certain circumstances occur, 
result in the payment of a substantial cash bonus to you based upon the 
Company's 1995 stock performance.
The Board has selected you for participation in the Arrangement as a reward 
for your valuable past services to the Corporation and its subsidiaries. In 
addition, the Board intends that its extension of the Arrangement to you will 
induce you to remain in the service of the Corporation and its subsidiaries, 
and continue your valuable and substantial efforts on their behalf.
ELIGIBILITY FOR BONUS
In the event you are not so employed on December 31, 1995, however, you will 
still be eligible to receive an unreduced bonus if your termination of 
employment was due to your death, disability, or a "change of control." For 
purposes of the Arrangement, the term "disability" has the meaning set forth 
in your Employment Contract. In the event your employment terminates prior to 
December 31, 1995, for a reason other than "cause," you will be eligible to 
receive a pro rata share of any bonus paid under the Arrangement based upon 
the number of days you are employed by the Corporation or one of its 
subsidiaries, divided by 365.
In the event your employment is terminated for "cause" pursuant to your 
Employment Agreement, you will not be eligible to receive any payment under 
the Arrangement.
AMOUNT OF BONUS
The cash bonus to be paid under the Arrangement shall be equal to the 
following: the difference between the Corporation's per share common stock 
price at the close of trading on December 30, 1994, as reported in THE WALL 
STREET JOURNAL as the average of the Corporation's per share price at the 
close of trading for the last ten trading days of 1995 as so reported. The 
per share price difference will then be multiplied by 45,000. It is the 
intent of the Arrangement, therefore, to pay you a cash bonus which 
approximates the growth performance of 45,000 shares of the Corporation's 
common stock for the 1995 calendar year.
However, in the event that a "change of control" of the Corporation occurs, 
you will instead be eligible for a bonus based upon the greater of:
    (1) The highest per share price paid by the person(s) affecting the
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change of control in acquiring shares of the Corporation's common stock 
during the two years prior to the occurrence of the change of control; or
   (2) The average of the share price of the corporation's common stock at 
the close of trading, as later reported in THE WALL STREET JOURNAL, for the 
ten trading days following the date that the person(s) publicly announce 
their plan to effect the change of control.
For purposes of the Arrangement, the term "change of control" has the meaning 
set forth in the AmVestors Financial Corporation Employee Stock Ownership 
Plan.
PAYMENT OF THE BONUS
Except for a bonus payment associated with a change of control, the 
Corporation will pay any bonus due you under the Arrangement on or before 
January 15, 1996. In the event that a change of control occurs, you will be 
paid any bonus due under the Arrangement within 14 days after the effective 
date of the change of control. The Corporation will withhold from any bonus 
payment due under the Arrangement all amounts it deems necessary or 
appropriate to satisfy its liability to withhold federal, state, or local 
income or other taxes attributable to any such bonus payment.
MISCELLANEOUS
The Arrangement does not confer upon you any right to continue in the employ 
of the Corporation or any subsidiary, and it shall not be construed to 
interfere with or otherwise limit the right of the Corporation or any 
subsidiary to modify or terminate the terms or conditions of your employment.
The Board of Directors of the Corporation retains the authority to address 
any and all questions which may arise with respect to the interpretation of 
the Arrangement, and the Board's determination shall be final and binding as 
to all parties.
Please evidence your desire to participate in the Arrangement as described 
above by executing this letter and returning it to my attention.
Very truly yours,
AMVESTORS FINANCIAL CORPORATION

/s/ Rex Lee
_______________________________
Rex Lee, Chairman of
Compensation Committee
Board of Directors of
AmVestors Financial Corporation
ACCEPTEDBY:
AMVESTORS FINANCIAL CORPORATION
BY /s/ Ralph W. Laster, Jr.       /s/ Mark V. Heitz
___________________________      _________________________________
                                   Participant
Title Chairman
_________________________
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