Plan and Agreement of Distribution
This plan and agreement is between IDS Money Market Series, Inc. (the
"Corporation") on behalf of its underlying fund and American Express Financial
Advisors Inc., the principal underwriter of the Corporation, for distribution
services to the Corporation. It is effective on the first day the Corporation
offers multiple classes of shares.
The plan and agreement has been approved by members of the Board of Directors
(the "Board") of the Corporation who are not interested persons of the
Corporation 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 Corporation will reimburse American Express Financial Advisors for all
sales and promotional expenses attributable to the sale of Class B shares,
including sales commissions, business and employee expenses charged to
distribution of Class B shares, and corporate overhead appropriately allocated
to the sale of Class B shares.
2. The amount of the reimbursement shall be equal on an annual basis to 0.75% of
the average daily net assets of the Corporation attributable to Class B shares.
The amount so determined shall be paid to American Express Financial Advisors in
cash within five (5) business days after the last day of each month. American
Express Financial Advisors agrees that if, at the end of any month, the expenses
of the Corporation, including fees under this agreement and any other agreement
between the Corporation and American Express Financial Advisors or American
Express Financial Corporation, but excluding taxes, brokerage commissions and
charges in connection with the purchase and sale of assets exceed the most
restrictive applicable state expense limitation for the Corporation's current
fiscal year, the Corporation shall not pay fees and expenses under this
agreement to the extent necessary to keep the Corporation's expenses from
exceeding the limitation, it being understood that American Express Financial
Advisors will assume all unpaid expenses and xxxx the Corporation for them in
subsequent months, but in no event can the accumulation of unpaid expenses or
billing be carried past the end of the Corporation's fiscal year.
3. For each purchase of Class B shares, after eight years the Class B shares
will be converted to Class A shares and those assets will no longer be included
in determining the reimbursement amount.
4. The Corporation understands that if a shareholder redeems Class B shares
before they are converted to Class A shares, American Express Financial Advisors
will impose a sales charge directly on the redemption proceeds to cover those
expenses it has previously incurred on the sale of those shares.
5. American Express Financial Advisors agrees to provide at least quarterly an
analysis of distribution expenses and to meet with representatives of the
Corporation as reasonably requested to provide additional information.
6. 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.
7. The plan and agreement may not be amended to increase materially the amount
that may be paid by the Corporation without the approval of a least a majority
of the outstanding shares of Class B. Any other amendment must be approved in
the manner in which the plan and agreement was initially approved.
8. This agreement may be terminated 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 Corporation and have no financial interest in the operation of
the plan and agreement, or by vote of a majority of the outstanding Class B
shares, or by American Express Financial Advisors. 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.
Approved this 20th day of March, 1995.
IDS MONEY MARKET SERIES, INC.
IDS Cash Management Fund
/s/ Xxxxxx X. Xxx
Xxxxxx X. Xxx
Vice President
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
/s/ Xxxxx X. Xxxxxx
Vice President
