Document:

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                          FOURTH SUPPLEMENTAL INDENTURE

         FOURTH SUPPLEMENTAL INDENTURE dated as of July 31, 2001 among Delta
Financial Corporation, a Delaware corporation (the "Company"), as issuer, each
of Delta Funding Corporation, a New York corporation, DF Special Holdings
Corporation, a Delaware corporation, Fidelity Mortgage Inc., a Delaware
corporation, DFC Financial Corporation, a Delaware corporation, DFC Financial of
Canada Limited, an Ontario, Canada corporation, DFC Funding of Canada Limited,
an Ontario, Canada corporation, Continental Property Management Corp., a New
York corporation, Delta Funding Residual Holding Trust 2000-1, a Delaware trust,
Delta Funding Residual Holding Trust 2000-2, a Delaware trust (collectively, the
"Subsidiary Guarantors") and U.S. Bank Trust National Association, a national
banking association incorporated under the laws of the United States, as trustee
(the "Trustee") under the Indenture referred to below.

         WHEREAS, the Company, the Subsidiary Guarantors and the Trustee have
previously entered into an Indenture dated as of December 21, 2000, as amended
(the "Indenture") relating to the Company's 9 1/2% Senior Secured Notes Due 2004
(the "Notes");

         WHEREAS, Section 9.02 of the Indenture provides that the Company, the
Subsidiary Guarantors and the Trustee may, with the written consent of the
holders of at least a majority in principal amount of the outstanding Notes,
amend or supplement the Indenture as provided herein;

         WHEREAS, the holders of a majority in principal amount of the
outstanding Notes have consented to this Fourth Supplemental Indenture and
agreed to amend the Indenture as set forth herein; and

         WHEREAS, all acts and things prescribed by law and by the Company's and
the Subsidiary Guarantors' Certificates of Incorporation and By-laws (each as
now in effect) necessary to make this Fourth Supplemental Indenture a valid
instrument legally binding on the Company and the Subsidiary Guarantors for the
purposes herein expressed, in accordance with its terms, have been duly done and
performed.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Company, the Subsidiary Guarantors and the Trustee hereby agree for the benefit
of each other and the equal and ratable benefit of the holders of the Notes as
follows:

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         1.       Amendment.

         Section 6.01 of the Indenture is hereby amended by deleting subsections
(l) and (m) and replacing them with the following:

         "(l) the Company or any of its affiliates fails in a material way to
perform any of the undertakings set forth in the Letter of Intent on or before
August 31, 2001; or

         (m) the Company fails to conclude the Exchange Offer described in the
Letter of Intent on or before August 31; or"

         2. Effectiveness. This Fourth Supplemental Indenture shall be effective
as of the date hereof.

         3. Construction. For all purposes of this Fourth Supplemental
Indenture, except as otherwise herein expressly provided or unless the context
otherwise requires: (i) the terms and expressions used herein shall have the
same meanings as corresponding terms and expressions used in the Indenture; and
(ii) the words "herein," "hereof" and "hereby" and other words of similar import
used in this Fourth Supplemental Indenture refer to this Fourth Supplemental
Indenture as a whole and not to any particular Section hereof.

         4. Trustee Acceptance. The Trustee accepts the amendment of the
Indenture effected by this Fourth Supplemental Indenture and agrees to execute
the trust created by the Indenture, as hereby amended, but only upon the terms
and conditions set forth in the Indenture, as hereby amended, including the
terms and provisions defining and limiting the liabilities and responsibilities
of the Trustee, which terms and provisions shall in like manner define and limit
its liabilities and responsibilities in the performance of the trust created by
the Indenture, as hereby amended. Without limiting the generality of the
foregoing, the Trustee has no responsibility for the correctness of the recitals
of fact herein contained which shall be taken as the statements of the Company
and makes no representations as to the validity, enforceability against the
Company, or sufficiency of this Fourth Supplemental Indenture.

         5. Indemnification of Trustee. The Company shall indemnify the Trustee
against any and all losses, liabilities or expenses, including taxes (other than
taxes based upon, measured by or determined by the income of the Trustee)
incurred by the Trustee arising out of or resulting from the execution of this
Fourth Supplemental Indenture, including the costs and expenses of enforcing
this Fourth Supplemental Indenture against the Company (including this Section
5) and defending itself against any claim (whether asserted by the Company or
any Holder or any other person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent any
such loss, liability or expense may be attributable to the Trustee's negligence,
bad faith or willful misconduct.

         6. Owner Trustee. It is expressly understood and agreed by the parties
that (a) this Fourth Supplemental Indenture is executed and delivered by
Wilmington Trust Company, not individually or personally, but solely as Owner
Trustee, in the exercise of the powers and authority conferred and vested in it,
pursuant to the 2000-1 Trust Agreement and the 2000-2 Trust Agreement, (b) each

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of the representations, undertakings and agreements herein made on the part of
the Trusts is made and intended not as personal representations, undertakings
and agreements by Wilmington Trust Company but is made and intended for the
purpose for binding only the Trusts, (c) nothing herein contained shall be
construed as creating any liability on Wilmington Trust Company, individually or
personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties hereto
and by any person claiming by, through or under the parties hereto, and (d)
under no circumstances shall Wilmington Trust Company be personally liable for
the payment of any indebtedness or expenses of the Trusts or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Trusts under this Fourth Supplemental Indenture or any
other related documents.

         7. Indenture Ratified. Except as expressly amended hereby, the
Indenture is in all respects ratified and confirmed and all the terms,
conditions and provisions thereof shall remain in full force and effect.

         8. Holders Bound. This Fourth Supplemental Indenture shall form a part
of the Indenture for all purposes, and every Holder of the Notes heretofore or
hereafter authenticated and delivered shall be bound hereby.

         9. Successors and Assigns. This Fourth Supplemental Indenture shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

         10. Counterparts. This Fourth Supplemental Indenture may be executed in
any number of counterparts, each of which when so executed shall be deemed to be
an original, and all of such counterparts shall together constitute one and the
same instrument.

         11. Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL
GOVERN AND BE USED TO CONSTRUE THIS FOURTH SUPPLEMENTAL INDENTURE WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW THEREOF.

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         IN WITNESS WHEREOF, the Company, the Subsidiary Guarantors and the
Trustee have caused this Fourth Supplemental Indenture to be signed and executed
as of the day and year first above written.

                              DELTA FINANCIAL CORPORATION

                              By:___________________________________
                                    Name: Marc E. Miller
                                   Title: Senior Vice President

                              DELTA FUNDING CORPORATION

                              By:___________________________________
                                    Name: Marc E. Miller
                                   Title: Senior Vice President

                              DF SPECIAL HOLDINGS CORPORATION

                              By:___________________________________
                                    Name: Marc E. Miller
                                   Title: Senior Vice President

                              FIDELITY MORTGAGE INC.

                              By:___________________________________
                                     Name: Marc E. Miller
                                   Title: Senior Vice President

                              DFC FINANCIAL CORPORATION

                              By:___________________________________
                                     Name: Marc E. Miller
                                   Title: Senior Vice President

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                               DFC FINANCIAL OF CANADA LIMITED

                               By:___________________________________
                                     Name: Marc E. Miller
                                    Title: Senior Vice President

                               DFC FUNDING OF CANADA LIMITED

                               By:___________________________________
                                     Name: Marc E. Miller
                                    Title: Senior Vice President

                               CONTINENTAL PROPERTY MANAGEMENT CORP.

                               By:___________________________________
                                     Name: Marc E. Miller
                                    Title: Senior Vice President

                               DELTA FUNDING RESIDUAL HOLDING TRUST 2000-1

                               By:  WILMINGTON TRUST COMPANY, not in its
                                    individual capacity but solely
                                    as Owner Trustee

                               By:___________________________________
                                    Name:
                                    Title:

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                               DELTA FUNDING RESIDUAL HOLDING TRUST 2000-2

                               By:  WILMINGTON TRUST COMPANY, not in its
                                    individual capacity but solely
                                    as Owner Trustee

                               By:___________________________________
                                    Name:
                                    Title:

                               U.S. BANK TRUST NATIONAL ASSOCIATION,
                                   Indenture Trustee

                               By:___________________________________
                                    Name:
                                    Title:EX-10.a
 Deferred Compensation Plan

                                EIGHTH AMENDMENT

                                KANSAS CITY LIFE
                           DEFERRED COMPENSATION PLAN

                                    ARTICLE I

                              Creation and Purpose

1.   It is the  intention  of the  Company to  establish  this Plan of  deferred
     compensation  for the benefit of designated  employees whose  contributions
     have been  restricted  by law and  regulation  under the  Kansas  City Life
     Insurance Company Savings and Profit Sharing Plan.

2.   By enrolling in this Plan, an employee  agrees to defer a portion of his or
     her current  earnings.  It is the intent of this Plan that  accumulated and
     vested  benefits  will  be  paid  to  such  participants  at  the  time  of
     retirement, termination, death or total and permanent disability.

                                   ARTICLE II

                                   Definitions

     (a)  "Salary" shall mean only the fixed amounts, weekly,  semi-monthly,  or
          monthly,  due and payable to the employee by the Company, and does not
          include any bonuses,  overtime pay or other extraordinary  payments by
          the Company.

     (b)  "Deferred  compensation"  shall  mean the  amount  of  salary  not yet
          earned,  which the participant and the Company mutually agree shall be
          deferred in accordance with the provisions of this Plan.

     (c)  "Normal  retirement"  shall mean termination from em-ployment with the
          Company  becoming  effective on or about the first day of the calendar
          month following the participant's attainment of age sixty-five (65).

     (d)  "Early  retirement"  shall mean  retirement  from  employment with the
          Company  on the  first  day of any  month  following  a  participant's
          fifty-fifth  (55th)  birthdate  with the  attainment  of at least five
          years of employment.  For purposes of determining the attainment of at
          least  five (5)  years of  employment,  the years of  employment  of a
          participant with Old American  Insurance  Company prior to November 1,
          1991 shall not be taken into account.

     (e)  "Termination   of   employment"   shall  mean  the  severance  of  the
          participant's  employment  with  the  Company  prior  to  his  or  her
          eligibility for retirement.

     (f)  "Participant"  shall mean any  employee of Kansas City Life  Insurance
          Company, or any subsidiary corporation, under the rules of common law,
          who  shall be a member  of a select  group  of  management  or  highly
          compensated employees designated for participation by Kansas City Life
          Insurance Company from time to time.

     (g)  "Company"  means  Kansas  City  Life  Insurance  Company,  a  Missouri
          Corporation,  Sunset Life Insurance  Company of America,  a Washington
          Corporation,  Old American Insurance  Company, a Missouri  Corporation
          and any other  subsidiary  corporation  of Kansas City Life  Insurance
          Company,  any or all of which may  sometimes  be referred to herein as
          affiliated corporations.

     (h)  "Company  stock"  shall  mean  shares of the common  capital  stock of
          Kansas City Life Insurance Company.

                                   ARTICLE III

                                 Administration

1.   The  Administrative   Committee,   sometimes  herein  referred  to  as  the
     "Committee",  shall consist of a number of persons, not less than three (3)
     nor more than five (5),  designated  by the  Executive  Committee of Kansas
     City Life Insurance Company, who shall serve terms of one (1) year or until
     their  successors  are  designated,  and  said  Committee  shall  have  the
     responsi-bility for the general administration of the Plan and for carrying
     out the provisions of the Plan in accordance with its terms.  The Committee
     shall have absolute discretion in carrying out its responsibilities.

2.   The Committee may appoint from its members such committees with such powers
     as it shall  determine;  may authorize one (1) or more of its number or any
     agent to execute  or  deliver  any  instrument  or make any  payment on its
     behalf;  and may  utilize  counsel,  employ  agents  and  provide  for such
     clerical  and  accounting  services as it may  require in carrying  out the
     provisions of the Plan.

3.   The  Committee  shall  hold  meetings  upon such  notice,  at such place or
     places, and at such time or times as it may from time to time determine.

4.   The action of a majority  of the members  expressed  from time to time by a
     vote in a meeting  or in writing  without a meeting  shall  constitute  the
     action of the  Committee and shall have the same effect for all purposes as
     if assented to by all members of the Committee at the time in office.

5.   No member of the Committee shall receive any  compensation for his services
     as such, and, except as required by law, no bond or other security shall be
     required of him in such capacity in any jurisdiction.

6.   Subject to the limitations of this Plan and Trust, the Commit-tee from time
     to time shall establish rules or regulations for the  administration of the
     Plan and the transaction of its business. The Committee shall have full and
     complete  discretionary  authority to construe and  interpret  the Plan and
     decide any and all matters arising hereunder, except such matters which the
     Executive  Committee  of the  Company  from  time to time may  reserve  for
     itself, including the right to remedy possible ambiguities, inconsistencies
     or  omissions.  All  interpretations,  determinations  and decisions of the
     Committee or the Executive  Committee of Kansas City Life Insurance Company
     in respect of any matter  hereunder shall be final,  conclusive and binding
     on all parties  affected  thereby.  The Committee  shall,  when  requested,
     submit a report to the  Executive  Committee of Kansas City Life  Insurance
     Company  giving  a brief  account  of the  operation  of the  Plan  and the
     performance of the various funds and accounts  established  pursuant to the
     Plan.

7.   The  Administrative  Committee  shall have full and complete  discretionary
     authority  to make all  determinations  as to the right of any  person to a
     benefit.  Any denial by the  Committee of a claim for  benefits  under this
     Plan by a participant  or a  beneficiary  shall be stated in writing by the
     Committee and delivered or mailed to the  participant  or the  beneficiary,
     whichever  is  appropriate;  and such notice  shall set forth the  specific
     reason for the denial,  written to the best of the Committee's ability in a
     manner  that may be  understood  without  legal or  actuarial  counsel.  In
     addition,  the  Committee  shall  provide a reasonable  opportunity  to any
     participant or  beneficiary  whose claim for benefits has been denied for a
     review of the decision denying the claim.

8.   Any member of the  Committee  may resign by giving  notice to the Executive
     Committee  at least  fifteen  (15) days  before the  effective  date of his
     resignation.  Any  Committee  member  shall  resign  upon  request  of  the
     Executive  Committee.  The Executive  Committee shall fill all vacancies on
     the Committee as soon as is reasonably  possible after a resignation  takes
     place, and until a new appointment  takes place,  the remaining  members of
     the Committee shall have authority to act, if approved by either a majority
     of the remaining members or by two (2) members, whichever number is lesser.

                                   ARTICLE IV

                            Participation in the Plan

1.   A qualified  employee may commence his participation in this Plan as of the
     first day of the month  coinciding with or next following his  designation,
     whichever first occurs.  He shall be notified of his eligibility  from time
     to time by the Company.

2.   The  eligible  employee  who desires to  participate  must execute a salary
     reduction  agreement in form  prescribed  by the Company,  and the employee
     shall thereby agree to the terms of this Plan and any amendments  hereafter
     adopted.

3.   At such time as the participating employee is no longer qualified,  because
     of the criteria  established  by this Plan,  no further  salary  reductions
     shall be made  until  he  shall  again be  qualified  and have  elected  to
     participate.

4.   Commencing  January 1, 1998, each  participant may elect to have his or her
     salary reduced in an amount equivalent to one per-cent (1%) through fifteen
     percent  (15%),  and said amount  shall be  withheld by payroll  deduction.
     These amounts shall be the participants' deferred compensation.  Commencing
     January 1, 1998, the amount subject to this reduction shall not exceed nine
     percent (9%) of annual  salary.  However,  if the  partici-pant's  elective
     deferrals  to the Kansas  City Life  Insurance  Company  Savings and Profit
     Sharing  Plan  exceed ten  thousand  dollars  ($10,000.00)  during any year
     (subject  to annual  adjustments  of this  amount in the  Kansas  City Life
     Insurance  Company  Savings and Profit Sharing Plan under Internal  Revenue
     Code Sections  415(d),  402(g) and  regulations),  an additional  amount in
     excess of nine  percent  (9%) of annual  salary may be  contributed  by the
     participant.  The  additional  amount  con-tributed  may not exceed fifteen
     percent (15%) of annual  salary.  A participant  may change the  percentage
     contribution  rate as of the first day of any month, but not more than once
     in any six (6) month  period  pursuant to the rules of the Kansas City Life
     Insurance Company Savings and Profit Sharing Plan. However, this limitation
     shall not apply to a change in percentage  contribution rate made effective
     January 1, 1998. The  contributions  herein may sometimes be referred to as
     the participant's "elective account".

5.   The  Company  shall  maintain  accounts  reflecting  the  amount  of salary
     withheld from an individual  pursuant to this Plan, and the balance in each
     participant's  elective  account  shall be fully  vested at all times.  The
     assets  reflected in such accounts  shall be owned by the Company and shall
     be subject to the claims of the Company's creditors.

6.   At such time as Kansas City Life Insurance Company shall determine,  it may
     provide  a  means  whereby  the  respective   participant  may  direct  the
     investment of the value of his elective  accounts  during the period of his
     participation in the Plan. The valuation of the participant's account shall
     be made by the Company not less often than  quarterly,  and the participant
     shall be entitled to receive an investment report from time to time.

7.   Amounts held in a  participant's  elective  account shall be distributed to
     him or her within a period of ninety (90) days  following  his  retirement,
     termination  of  employment,  death,  or total and permanent  disability as
     determined under the law and regulations regarding Social Security.

                                    ARTICLE V

                              Company Contributions

1.   The Company shall, with respect to each participant, maintain an account in
     an  amount  equal  to one  hundred  percent  (100%)  of such  participant's
     contribution  resulting  from  his  salary  reduction  agreement  prior  to
     December  31,  1997.  The  Company  may,  solely  at  its  discretion,  add
     additional amounts for the accounts of designated individuals as offsetting
     deferred  compensation for amounts which would have otherwise been credited
     to them except for regulatory  restrictions.  Com-mencing  January 1, 1998,
     with respect to  participants  whose elective  deferrals to the Kansas City
     Life Insurance  Company Savings and Profit Sharing Plan exceed ten thousand
     dollars ($10,000.00) during any year (subject to annual adjustments of this
     amount  under   Internal   Revenue  Code   Sections   415(d),   402(g)  and
     regulations), these additional amounts will include an amount equal to that
     which would otherwise have been  con-tributed  for these  participants as a
     matching  contribution under the Kansas City Life Insurance Company Savings
     and Profit  Sharing  Plan.  Such  Company  contributions  account  shall be
     separate from the  participant's  elective account.  Commencing  January 1,
     2000, with respect to participants  whose  compensation  exceeds the annual
     compensation  limit of one hundred seventy thousand  dollars  ($170,000.00)
     during  any year  [subject  to  annual  adjustments  of this  amount  under
     Internal  Revenue Code Sections  401(a)(17) and 404(l)],  these  additional
     amounts  will include an amount  equal to that which  otherwise  would have
     been  contributed for these  participants  but for the annual  compensation
     limit as a profit  sharing  contribution  to the Kansas City Life Insurance
     Company  Savings  and Profit  Sharing  Plan for those years in which such a
     contribution  was made to that Plan.  Such Company  contributions  shall be
     kept  separate  from  the  participant's   elective  account  and  matching
     contribution  account. Such Company contributions account shall be separate
     from the  participant's  elective  account.  Gains and losses regarding the
     value of such  accounts  shall be determined by the changes in market value
     of the  common  capital  stock  of the  Company  and  the  accumulation  of
     dividends.  In the  event of any  change  in the  outstanding  stock of the
     Company  by  reason  of  a  stock   dividend,   recapitalization,   merger,
     consolidation,  exchange  of shares,  or any  similar  device,  the account
     balance shall be adjusted appropriately.

2.   For purposes of fixing the amount of  contributions  made  pursuant to this
     paragraph,  the value of stock  shall be at the average of its bid price on
     the  over-the-counter  market for all business days  following the previous
     monthly  valuation date. The participant shall not have the right to direct
     the investment of the Company account established for his benefit.

3.   The balance in the Company account  established for each participant  shall
     be subject to the  vesting  provisions  of  Article  VII.  The value of the
     Company account for such participant  shall be distributed to him or her at
     the time of his retirement,  termination of employment,  death or total and
     permanent disability as defined under the law and regulations of the Social
     Security  law.  The  participant  shall  not be  entitled  to shares of the
     Company stock, and shall be entitled only to cash.

                                   ARTICLE VI

             Allocation to and Evaluation of Participants' Accounts

1.   Investment funds.  The value of all  accounts  shall be  determined  on the
     basis of market  values as of the last market  business  day of each month,
     except  that when the value of any  account  is  determined  based upon the
     value of Kansas  City Life stock the Kansas City Life stock shall be valued
     at the  average  of its bid price on the  over-the-counter  market  for all
     business days following the previous  monthly  valuation  date.  Accounting
     procedures  shall reflect the  establishment  of at least four (4) separate
     accounts,  sometimes  herein  referred  to as Fund I, Fund II, Fund III and
     Fund IV, and commencing  September 1, 1993,  five (5)  additional  separate
     accounts shall be established, sometimes hereinafter referred to as Fund V,
     Fund  VI,  Fund  VII,  Fund  VIII and Fund  IX,  with the  intent  that all
     participants'  deferred  compensation,  and any earnings  thereon,  will be
     accounted  for in Fund I, Fund II, Fund IV, Fund V, Fund VI, Fund VII, Fund
     VIII and Fund IX, and with the intent that all Company  contributions,  and
     any  earnings  thereon,  will be  accounted  for in Fund III.  The value of
     deferred  compensation  referenced  to Funds I, IV, V, VI, VII, VIII and IX
     shall be determined by the Company's general  investments and the values of
     Funds II and III shall be  determined  by  reference to the stock of Kansas
     City Life Insurance Company.  The Company shall have the right to segregate
     and maintain in trust specific assets for the purpose of valuing,  managing
     and holding assets for the respective accounts.

2.   Participants' accounts.   An  account   shall  be   established   for  each
     participant  with  respect to Fund I, Fund II, Fund III and with respect to
     Fund IV, Fund V, Fund VI, Fund VII, Fund VIII and Fund IX or any other such
     fund that reasonable accounting practices shall require be established. All
     Funds shall be maintained in United States dollars.  A determination  shall
     be made on each  monthly  valuation  date of the value with respect to each
     fund, and shall reflect  contributions made by both the participant and the
     Company  and  any  gains  or  losses  of  the  funds.  Notwithstanding  the
     foregoing,  the  Company  shall  have the  right to  change  the  method of
     accounting from time to time.

3.   Selected investment.   Commencing   September  1,  1993,  a  par-ticipant's
     deferred compensation may be invested one hundred percent (100%) in any one
     (1) of Funds I, II, IV, V, VI,  VII,  VIII or IX, or if he wishes to invest
     in more than one (1) fund, he shall  specify the  percentage to be invested
     in each fund.  However,  such  percentage must be a whole  percentage,  for
     example,  one percent  (1%),  twenty-six  percent  (26%) or eighty  percent
     (80%), and no fractional  percentages  will be permitted.  Each participant
     may  make  new  investment  choices  for his  deferred  compensation  to be
     effective  September 1, 1993  notwithstanding any changes made in the prior
     twelve (12) months.  Thereafter, a participant may request changes not more
     often than once a month.  However,  if a participant  is investing all or a
     portion of his deferred compensation in Fund II and transfers all or a part
     of his Fund II account  to  another  fund (as  described  in the  following
     paragraph 4), deferred compensation  investment in Fund II must cease until
     at least six (6) months  from the date of said  transfer  from Fund II. The
     participant's  deferred  compensation  shall also be  invested  in the same
     manner as the participant  shall have  designated  pursuant to the rules of
     The Kansas City Life Insurance Company Savings and Profit Sharing Plan.

     Commencing  November 1, 1996,  a  participant  may  request  changes in the
     investment  choices  not more  often  than once a month  without  regard to
     investment  choices made in the Kansas City Life Insurance  Company Savings
     and Profit  Sharing Plan.  However,  if a participant is investing all or a
     portion of his deferred compensation in Fund II and transfers all or a part
     of his Fund II account  to  another  fund (as  described  in the  following
     Paragraph 4), deferred compensation  investment in Fund II must cease until
     at least six (6) months from the date of said transfer from Fund II.

4.   Investment changes.  Commencing  September 1, 1993, any par-ticipant  shall
     have the right not more  often  than once a month and  notwithstanding  any
     transfers  made in the twelve (12) months prior to  September  1, 1993,  to
     require the value of any one (1) or more of his accounts be transferred for
     his account in any of Funds I, II, IV, V, VI, VII, VIII or IX provided such
     transfer shall be in whole percentages.  This right shall not apply to Fund
     III, and a participant  that transferred the value of his account from Fund
     II to another fund in the six (6) months prior to September 1, 1993 may not
     transfer  any amount  into Fund II until at least six (6) months  after the
     date of said transfer from Fund II.  Thereafter,  transfers to or from Fund
     II may occur only once in a six (6) month period. Such transfers shall also
     be governed by reasonable  rules of the Committee  regarding the timeliness
     of notice.  Such  transfers  shall only occur at such time, and in the same
     manner, as the participant  shall have designated  pursuant to the rules of
     the Kansas City Life Insurance Company Savings and Profit Sharing Plan.

     Commencing  November 1, 1996, the  participant may require the value of his
     accounts be transferred  not more often than once a month to any one (1) or
     more of the other funds without regard to transfers made in the Kansas City
     Life Insurance  Company Savings and Profit Sharing Plan except for Fund II.
     Transfers  to or from Fund II may only occur once in a six (6) month period
     and  must be  transferred  at  such  time  and in the  same  manner  as the
     participant shall have designated  pursuant to the rules of the Kansas City
     Life Insurance Company Savings and Profit Sharing Plan.

                                   ARTICLE VII

                                     Vesting

1.   The value of a participant's  account with respect to Company contributions
     made for his  benefit  shall be  vested,  to the  extent of the  percentage
     applicable,  upon the valuation date of the month in which the  participant
     completes the years of employment  with the Company in accordance  with the
     following schedule:

               Years of Employment         Percentage Vested

                       1                             0
                       2                             0
                       3                            30
                       4                            40
                       5                            60
                       6                            80
                       7                           100

2.   A "year of employment" shall mean a twelve (12) consecutive  monthly period
     of employment  with the Company  dating from  commencement  of  employment,
     during which he or she shall  complete at least one thousand  (1,000) hours
     of  employment.  If an employee's  employment  with either Kansas City Life
     Insurance  Company  or  one  of  its  affiliated   corporations   shall  be
     terminated,  and he is immediately employed by any other of such affiliated
     corporations, his employment shall be regarded as continuous and treated as
     if under one employer for vesting purposes. However, years of employment of
     an employee of Old American  Insurance  Company prior to  November 1,  1991
     shall not be taken into account for purposes of this Article VII.

3.   In the event a participant  shall be terminated  from  employment  with the
     Company  or any of its  affiliated  corporations,  by  reason  of  death or
     retirement or early retirement as defined herein,  the value of his account
     shall be one hundred  percent  (100%) vested upon the valuation date of the
     month in which such death or retirement occurs, and shall be distributed to
     him or her within a period of ninety (90) days thereafter.

                                  ARTICLE VIII

                                  Miscellaneous

1.   All distributions provided or pursuant to this Plan shall be in the form of
     a lump sum  payment.  If a payment  is made as a result of the death of the
     participant,  the  payment  shall be made to the  surviving  spouse  of the
     participant, if any, unless a beneficiary designation has been provided.

2.   Any participant or retired  participant shall have the right to designate a
     new  beneficiary  at any time by filing with the Company a written  request
     for such  change,  but any such change  shall  become  effective  only upon
     receipt of such request by the Company. Upon receipt by the Company of such
     request,  the change  shall  relate  back to and take effect as of the date
     such  participant  signs such request  whether or not such  parti-cipant is
     living at the time the Company receives such request.

3.   If there be no designated  beneficiary  living or in effect at the death of
     such  participant  when  any  payment  hereunder  shall be  payable  to the
     beneficiary,   then  such  payment  shall  be  made  as  follows:  To  such
     participant's  spouse, if living; if not living, to such participant's then
     living lineal descendants,  in equal shares, per stirpes; if none survives,
     to such par-ticipant's surviving parents,  equally. If neither survives, to
     such participant's executors or administrators.

4.   The  interest  hereunder  of  any  participant,   retired   participant  or
     beneficiary  shall not be  alienable,  either by assignment or by any other
     method,  and to the maximum extent permissible by law, shall not be subject
     to  being  taken,  by any  process  whatever,  by  the  creditors  of  such
     participant, retired participant or beneficiary.

5.   Nothing herein  contained nor any action taken under the provisions  hereof
     shall be  construed  as giving any employee the right to be retained in the
     employment of the Company.

6.   The  Company  shall have the right to amend or  terminate  this Plan at any
     time.

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