Plan and Agreement of Distribution
This plan and agreement, effective as of April 7, 1999, is between IDS Strategy
Fund, Inc. (the "Fund") and American Express Financial Advisors Inc. ("AEFA"),
the principal underwriter of the Fund, for distribution services to the Fund.
The plan and agreement has been approved by members of the Board of Directors
(the "Board") of the Fund who are not interested persons of the Fund and have no
direct or indirect financial interest in the operation of the plan or any
related agreement, and all of the members of the Board, in person, at a meeting
called for the purpose of voting on the plan and agreement.
The plan and agreement provides that:
1. The Fund will reimburse AEFA for all sales and promotional expenses
attributable to the sale of Class A and Class B shares, including sales
commissions, business and employee expenses charged to distribution of Class A
and Class B shares, and corporate overhead appropriately allocated to the sale
of Class A and Class B shares.
2. For Class A shares, the amount of the reimbursement shall be equal on an
annual basis to 0.25% of the average daily net assets of the Fund attributable
to Class A shares. The amount so determined shall be paid to AEFA in cash within
five (5) business days after the last day of each month.
3. For Class B shares, the amount of the reimbursement shall be equal on an
annual basis to 1.00% of the average daily net assets of the Fund attributable
to Class B shares. Of that amount, 0.75% shall be reimbursed for distribution
expenses. The additional 0.25% shall be paid to AEFA to compensate financial
advisors and other servicing agents for personal service to shareholders and
maintenance of shareholder accounts. The amount so determined shall be paid to
AEFA in cash within five (5) business days after the last day of each month.
4. For each purchase of Class B shares, in the ninth year of ownership the Class
B shares will be converted to Class A shares.
5. The Fund understands that if a shareholder redeems Class B shares before they
are converted to Class A shares, AEFA will impose a sales charge directly on the
redemption proceeds to cover those expenses it has previously incurred on the
sale of those shares.
6. AEFA agrees to provide at least quarterly an analysis of expenses under this
agreement and to meet with representatives of the Fund as reasonably requested
to provide additional information.
7. The plan and agreement shall continue in effect for a period of more than one
year provided it is reapproved at least annually in the same manner in which it
was initially approved.
8. The plan and agreement may not be amended to increase materially the amount
that may be paid by the Fund without the approval of a least a majority of the
outstanding shares of the relevant class. Any other amendment must be approved
in the manner in which the plan and agreement was initially approved.
9. This agreement may be terminated as to Class A or Class B at any time without
payment of any penalty by a vote of a majority of the members of the Board who
are not interested persons of the Fund and have no financial interest in the
operation of the plan and agreement, or by vote of a majority of the outstanding
shares of the relevant class, or by AEFA. The plan and agreement will terminate
automatically in the event of its assignment as that term is defined in the
Investment Company Act of 1940.
IDS STRATEGY FUND, INC.
AXP Small Cap Advantage Fund
______________________
▇▇▇▇▇▇ ▇. ▇▇▇
Vice President
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
______________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Vice President
