Document:

<PAGE>

                                                               Exhibit 10.20

                         INVESTMENT MANAGEMENT AGREEMENT

THIS AGREEMENT, made this 31st day of August, 1992, by and between WADDELL &
REED FUNDS, INC. (hereinafter called "Fund"), and WADDELL & REED INVESTMENT
MANAGEMENT COMPANY,

                                   WITNESSETH:

In consideration of the mutual promises and agreements herein contained and
other good and valuable consideration, the receipt of which is hereby
acknowledged, it is hereby agreed by and between the parties hereto as follows:

                           I. IN GENERAL

                                    Waddell & Reed Investment Management Company
agrees to act as investment adviser to Fund with respect to the investment of
its assets and in general to supervise the investments of Fund, subject at all
times to the direction and control of the Board of Directors of Fund, all as
more fully set forth herein.

                           II. DUTIES OF WADDELL & REED INVESTMENT MANAGEMENT
COMPANY WITH RESPECT TO INVESTMENT OF ASSETS OF FUND

                                    A.  Waddell & Reed Investment Management
Company shall regularly provide investment advice to Fund and shall, subject to
the succeeding provisions of this section, continuously supervise the investment
and reinvestment of cash, securities or other property comprising the assets of
the investment portfolios of Fund; and in furtherance thereof, Waddell & Reed
Investment Management Company shall:

                                            1.  obtain and evaluate pertinent
information about significant developments and economic, statistical and
financial data, domestic, foreign or otherwise, whether affecting the economy
generally or one or more of the portfolios of Fund, and whether concerning the
individual companies whose securities are included in one or more of Fund's
portfolios or the industries in which they engage, or with respect to securities
which Waddell & Reed Investment Management Company considers desirable for
inclusion in one or more of Fund's portfolios;

                                            2.  furnish continuously an
investment program for each of the portfolios of Fund;

                                            3.  determine what securities shall
be purchased or sold by Fund;

                                            4.  take, on behalf of Fund, all
actions which appear to Waddell & Reed Investment Management Company necessary
to carry into effect such investment programs and supervisory functions as
aforesaid, including the placing of purchase and sale orders.

<PAGE>

                                    B.  Waddell & Reed Investment Management
Company shall make appropriate and regular reports to the Board of Directors of
Fund on the actions it takes pursuant to Section II.A. above. Any investment
programs furnished by Waddell & Reed Investment Management Company under this
section, or any supervisory function taken hereunder by Waddell & Reed
Investment Management Company shall at all times conform to and be in accordance
with any requirements imposed by:

                                            1.  the provisions of the Investment
Company Act of 1940 and any rules or regulations in force thereunder;

                                            2.  any other applicable provision
of law;

                                            3.  the provisions of the Articles
of Incorporation of Fund as amended from time to time;

                                            4.  the provisions of the Bylaws of
Fund as amended from time to time;

                                            5.  the terms of the registration
statement of Fund, as amended from time to time, under the Securities Act of
1933 and the Investment Company Act of 1940.

                                    C.  Any investment programs furnished by
Waddell & Reed Investment Management Company under this section or any
supervisory functions taken hereunder by Waddell & Reed Investment Management
Company shall at all times be subject to any directions of the Board of
Directors of Fund, its Executive Committee, or any committee or officer of Fund
acting pursuant to authority given by the Board of Directors.

                           III. ALLOCATION OF EXPENSES

                                    The expenses of Fund and the expenses of
Waddell & Reed Investment Management Company in performing its functions under
this Agreement shall be divided into two classes, to wit: (i) those expenses
which will be paid in full by Waddell & Reed Investment Management Company as
set forth in subparagraph "A" hereof, and (ii) those expenses which will be paid
in full by Fund, as set forth in subparagraph "B" hereof.

                                    A.  With respect to the duties of Waddell &
Reed Investment Management Company under Section II above, it shall pay in full,
except as to the brokerage and research services acquired through the allocation
of commissions as provided in Section IV hereinafter, for (a) the salaries and
employment benefits of all employees of Waddell & Reed Investment Management
Company who are engaged in providing these advisory services; (b) adequate
office space and suitable office equipment for such employees; and (c) all
telephone and communications costs relating to such functions. In addition,
Waddell & Reed Investment Management Company shall pay the fees and expenses of
all directors of Fund who are employees of Waddell & Reed Investment Management
Company or an affiliated corporation and the salaries and employment benefits of
all officers of Fund who are affiliated persons of Waddell & Reed Investment
Management Company.

                                       2
<PAGE>

                                    B. Fund shall pay in full for all of its
expenses which are not listed above (other than those assumed by Waddell & Reed
Investment Management Company or one of its affiliates in its capacity as
principal underwriter of the shares of Fund, as Shareholder Servicing Agent or
as Accounting Services Agent for Fund), including (a) the costs of preparing and
printing prospectuses and reports to shareholders of Fund, including mailing
costs; (b) the costs of printing all proxy statements and all other costs and
expenses of meetings of shareholders of Fund (unless Fund and Waddell & Reed
Investment Management Company shall otherwise agree); (c) interest, taxes,
brokerage commissions and premiums on fidelity and other insurance; (d) audit
fees and expenses of independent accountants and legal fees and expenses of
attorneys, but not of attorneys who are employees of Waddell & Reed Investment
Management Company or an affiliated company; (e) fees and expenses of its
directors not affiliated with Waddell & Reed, Inc.; (f) custodian fees and
expenses; (g) fees payable by Fund under the Securities Act of 1933, the
Investment Company Act of 1940, and the securities or "Blue-Sky" laws of any
jurisdiction; (h) fees and assessments of the Investment Company Institute or
any successor organization; (i) such nonrecurring or extraordinary expenses as
may arise, including litigation affecting Fund, and any indemnification by Fund
of its officers, directors, employees and agents with respect thereto; (j) the
costs and expenses provided for in any Shareholder Servicing Agreement or
Accounting Services Agreement, including amendments thereto, contemplated by
subsection C of this Section III. In the event that any of the foregoing shall,
in the first instance, be paid by Waddell & Reed Investment Management Company,
Fund shall pay the same to Waddell & Reed Investment Management Company on
presentation of a statement with respect thereto.

                                    C.  Waddell & Reed Investment Management
Company or an affiliate of Waddell & Reed Investment Management Company, may
also act as (i) transfer agent or shareholder servicing agent of Fund and/or as
(ii) accounting services agent of Fund if at the time in question there is a
separate agreement, "Shareholder Servicing Agreement" and/or "Accounting
Services Agreement," covering such functions between Fund and Waddell & Reed
Investment Management Company, or such affiliate. The corporation, whether
Waddell & Reed Investment Management Company, or its affiliate, which is the
party to either such Agreement with Fund is referred to as the "Agent." Each
such Agreement shall provide in substance that it shall go into effect, or be
amended, or a new agreement covering the same topics between Fund and the Agent
may be entered into, only if the terms of such Agreement, such amendment or such
new agreement have been approved by the Board of Directors of Fund, including
the vote of a majority of the directors who are not "interested persons" as
defined in the Investment Company Act of 1940, of either party to the Agreement,
such amendment or such new agreement (considering Waddell & Reed Investment
Management Company to be such a party even if at the time in question the Agent
is an affiliate of Waddell & Reed Investment Management Company), cast in person
at a meeting called for the purpose of voting on such approval. Such a vote is
referred to as a "disinterested director" vote. Each such Agreement shall also
provide in substance for its continuance, unless terminated, for a specified
period which shall not exceed two years from the date of its execution and from
year to year thereafter only if such continuance is specifically approved at
least annually by a disinterested director vote, and that any disinterested
director vote shall include a determination that (i) the Agreement, amendment,
new agreement or continuance in question is in the best interests of Fund and
its shareholders; (ii) the services to be performed under the Agreement, the
Agreement as amended, new agreement or agreement to be continued are services
required for the operation of Fund; (iii) the Agent can provide services the
nature and quality of which are at least equal to those provided by others
offering the same or similar services; and (iv) the fees for such services are
fair and reasonable in

                                       3
<PAGE>

light of the usual and customary charges made by others for services of the same
nature and quality. Any such Agreement may also provide in substance that any
disinterested director vote may be conditioned on the favorable vote of the
holders of a majority (as defined in or under the Investment Company Act of
1940) of the outstanding shares of each class or series of Fund. Any such
Agreement shall also provide in substance that it may be terminated by the Agent
at any time without penalty upon giving Fund one hundred twenty (120) days'
written notice (which notice may be waived by Fund) and may be terminated by
Fund at any time without penalty upon giving the Agent sixty (60) days' written
notice (which notice may be waived by the Agent), provided that such termination
by Fund shall be directed or approved by the vote of a majority of the Board of
Directors of Fund in office at the time or by the vote of the holders of a
majority (as defined in or under the Investment Company Act of 1940) of the
outstanding shares of each class or series of Fund.

                           IV. BROKERAGE

                                    (a)  Waddell & Reed Investment Management
Company may select brokers to effect the portfolio transactions of Fund on the
basis of its estimate of their ability to obtain, for reasonable and competitive
commissions, the best execution of particular and related portfolio
transactions. For this purpose, "best execution" means prompt and reliable
execution at the most favorable price obtainable. Such brokers may be selected
on the basis of all relevant factors including the execution capabilities
required by the transaction or transactions, the importance of speed,
efficiency, or confidentiality, and the willingness of the broker to provide
useful or desirable investment research and/or special execution services.
Waddell & Reed Investment Management Company shall have no duty to seek advance
competitive commission bids and may select brokers based solely on its current
knowledge of prevailing commission rates.

                                    (b)  Subject to the foregoing, Waddell &
Reed Investment Management Company shall have discretion, in the interest of
Fund, to direct the execution of its portfolio transactions to brokers who
provide brokerage and/or research services (as such services are defined in
Section 28(e) of the Securities Exchange Act of 1934) for Fund and/or other
accounts for which Waddell & Reed Investment Management Company or one or more
of its affiliates exercise "investment discretion" (as that term is defined in
Section 3(a)(35) of the Securities Exchange Act of 1934); and in connection with
such transactions, to pay commission in excess of the amount another adequately
qualified broker would have charged if Waddell & Reed Investment Management
Company determines, in good faith, that such commission is reasonable in
relation to the value of the brokerage and/or research services provided by such
broker, viewed in terms of either that particular transaction or the overall
responsibilities of Waddell & Reed Investment Management Company and its
investment advisory affiliates with respect to the accounts for which they
exercise investment discretion. In reaching such determination, Waddell & Reed
Investment Management Company will not be required to attempt to place a
specified dollar amount on the brokerage and/or research services provided by
such broker; provided that Waddell & Reed Investment Management Company shall be
prepared to demonstrate that such determinations were made in good faith, and
that all commissions paid by Fund over a representative period selected by its
Board of Directors were reasonable in relation to the benefits to Fund.

                                    (c)  Subject to the foregoing provisions of
this Paragraph "IV," Waddell & Reed Investment Management Company may also
consider sales of Fund's shares and

                                       4
<PAGE>

shares of investment companies distributed by Waddell & Reed, Inc. or one of its
affiliates, and portfolio valuation or pricing services as a factor in the
selection of brokers to execute brokerage and principal portfolio transactions.

                           V. COMPENSATION OF WADDELL & REED INVESTMENT
MANAGEMENT COMPANY

                                    As compensation in full for services
rendered and for the facilities and personnel furnished under sections I, II,
and IV of this Agreement, Fund will pay to Waddell & Reed Investment Management
Company for each day the fees specified in Exhibit A hereto.

                                    The amounts payable to Waddell & Reed
Investment Management Company shall be determined as of the close of business
each day; shall, except as set forth below, be based upon the value of net
assets computed in accordance with the Articles of Incorporation of Fund; and
shall be paid in arrears whenever requested by Waddell & Reed Investment
Management Company. In computing the value of the net assets of Fund, there
shall be excluded the amount owed to Fund with respect to shares which have been
sold but not yet paid to Fund by Waddell & Reed, Inc.

                                    Notwithstanding the foregoing, if the laws,
regulations or policies of any state in which shares of Fund are qualified for
sale limit the operation and management expenses of Fund, Waddell & Reed
Investment Management Company will refund to Fund the amount by which such
expenses exceed the lowest of such state limitations.

                           VI.      UNDERTAKINGS OF WADDELL & REED INVESTMENT
MANAGEMENT COMPANY; LIABILITIES

                                    Waddell & Reed Investment Management Company
shall give to Fund the benefit of its best judgment, efforts and facilities in
rendering advisory services hereunder.

                                    Waddell & Reed Investment Management Company
shall at all times be guided by and be subject to Fund's investment policies,
the provisions of its Articles of Incorporation and Bylaws as each shall from
time to time be amended, and to the decision and determination of Fund's Board
of Directors.

                                    This Agreement shall be performed in
accordance with the requirements of the Investment Company Act of 1940, the
Investment Advisers Act of 1940, the Securities Act of 1933, and the Securities
Exchange Act of 1934, to the extent that the subject matter of this Agreement is
within the purview of such Acts. Insofar as applicable to Waddell & Reed
Investment Management Company, as an investment adviser and affiliated person of
Fund, Waddell & Reed Investment Management Company shall comply with the
provisions of the Investment Company Act of 1940, the Investment Advisers Act of
1940 and the respective rules and regulations of the Securities and Exchange
Commission thereunder.

                                    In the absence of willful misfeasance, bad
faith, gross negligence or reckless disregard of obligations or duties hereunder
on the part of Waddell & Reed Investment Management Company, it shall not be
subject to liability to Fund or to any

                                       5
<PAGE>

stockholder of Fund for any act or omission in the course of or connected with
rendering services thereunder or for any losses that may be sustained in the
purchase, holding or sale of any security.

                           VII.     DURATION OF THIS AGREEMENT

                                    This Agreement shall become effective at the
start of business on the date hereof and shall continue in effect, unless
terminated as hereinafter provided, for a period of one year and from
year-to-year thereafter only if such continuance is specifically approved at
least annually by the Board of Directors, including the vote of a majority of
the directors who are not parties to this Agreement or "interested persons" (as
defined in the Investment Company Act of 1940) of any such party, cast in person
at a meeting called for the purpose of voting on such approval, or by the vote
of the holders of a majority (as so defined) of the outstanding voting
securities of each class or series of Fund and by the vote of a majority of the
directors who are not parties to this Agreement or "interested persons" (as so
defined) of any such party, cast in person at a meeting called for the purpose
of voting on such approval.

                           VIII.    TERMINATION

                                    This Agreement may be terminated by
Waddell & Reed Investment Management Company at any time without penalty upon
giving Fund one hundred twenty (120) days' written notice (which notice may be
waived by Fund) and may be terminated by Fund at any time without penalty upon
giving Waddell & Reed Investment Management Company sixty (60) days' written
notice (which notice may be waived by Waddell & Reed Investment Management
Company), provided that such termination by Fund shall be directed or approved
by the vote of a majority of the Board of Directors of Fund in office at the
time or by the vote of a majority (as defined in the Investment Company Act of
1940) of the outstanding voting securities of Fund. This Agreement shall
automatically terminate in the event of its assignment, the term "assignment"
for this purpose having the meaning defined in Section 2(a)(4) of the Investment
Company Act of 1940 and the rules and regulations thereunder.

IN WITNESS WHEREOF, the parties hereto have caused the foregoing instrument to
be executed by their duly authorized officers and their corporate seal to be
hereunto affixed, all as of the day and year first above written.

(Seal)                     WADDELL & REED FUNDS, INC.

                           By: /s/Rodney O. McWhinney
                              -----------------------
                              Rodney O. McWhinney
                              Vice President

ATTEST:

By: /s/Sharon K. Pappas
    -------------------
Sharon K. Pappas
Secretary

                                       6
<PAGE>

(Seal)                                      WADDELL & REED INVESTMENT
                                            MANAGEMENT COMPANY

                                            By: /s/Robert L. Hechler
                                                ------------------------
                                             Robert L. Hechler
                                             Executive Vice President

ATTEST:

By:  /s/Rodney O. McWhinney
     ----------------------
Rodney O. McWhinney
Secretary

                                       7
<PAGE>

                  EXHIBIT A TO INVESTMENT MANAGEMENT AGREEMENT

                                 W&R FUNDS, INC.

                                  FEE SCHEDULES

A cash fee computed each day on net asset value for each Fund at the annual
rates listed below*:

ASSET STRATEGY FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.70% of net assets

Over $1 billion and up to $2 billion                 0.65% of net assets

Over $2 billion and up to $3 billion                 0.60% of net assets

Over $3 billion                                      0.55% of net assets
</TABLE>

CORE EQUITY FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.70% of net assets

Over $1 billion and up to $2 billion                 0.65% of net assets

Over $2 billion and up to $3 billion                 0.60% of net assets

Over $3 billion                                      0.55% of net assets
</TABLE>

HIGH INCOME FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $500 million                                   0.625% of net assets

Over $500 million and up to $1 billion               0.60% of net assets

Over $1 billion and up to $1.5 billion               0.55% of net assets

Over $1.5 billion                                    0.50% of net assets
</TABLE>

                                       8
<PAGE>

INTERNATIONAL GROWTH FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.85% of net assets

Over $1 billion and up to $2 billion                 0.83% of net assets

Over $2 billion and up to $3 billion                 0.80% of net assets

Over $3 billion                                      0.76% of net assets
</TABLE>

LARGE CAP GROWTH FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.70% of net assets

Over $1 billion and up to $2 billion                 0.65% of net assets

Over $2 billion and up to $3 billion                 0.60% of net assets

Over $3 billion                                      0.55% of net assets
</TABLE>

LIMITED-TERM BOND FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $500 million                                   0.50% of net assets

Over $500 million and up to $1 billion               0.45% of net assets

Over $1 billion and up to $1.5 billion               0.40% of net assets

Over $1.5 billion                                    0.35% of net assets
</TABLE>

MID CAP GROWTH FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.85% of net assets

Over $1 billion and up to $2 billion                 0.83% of net assets

Over $2 billion and up to $3 billion                 0.80% of net assets

Over $3 billion                                      0.76% of net assets
</TABLE>

                                       9
<PAGE>

MONEY MARKET FUND

A cash fee computed each day on net asset value for the Fund at the annual rate
of 0.40% of net assets.

MUNICIPAL BOND FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $500 million                                   0.525% of net assets

Over $500 million and up to $1 billion               0.50% of net assets

Over $1 billion and up to $1.5 billion               0.45% of net assets

Over $1.5 billion                                    0.40% of net assets
</TABLE>

SCIENCE AND TECHNOLOGY FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.85% of net assets

Over $1 billion and up to $2 billion                 0.83% of net assets

Over $2 billion and up to $3 billion                 0.80% of net assets

Over $3 billion                                      0.76% of net assets
</TABLE>

SMALL CAP GROWTH FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.85% of net assets

Over $1 billion and up to $2 billion                 0.83% of net assets

Over $2 billion and up to $3 billion                 0.80% of net assets

Over $3 billion                                      0.76% of net assets
</TABLE>

                                       10
<PAGE>

TAX-MANAGED EQUITY FUND

<TABLE>
<CAPTION>
Net Assets                                           Fee
----------                                           ---

<S>                                                  <C>
Up to $1 billion                                     0.65% of net assets

Over $1 billion and up to $2 billion                 0.60% of net assets

Over $2 billion and up to $3 billion                 0.55% of net assets

Over $3 billion                                      0.50% of net assets
</TABLE>

*If a Fund's net assets are less than $25 million, Waddell & Reed Investment
  Management Company has agreed to voluntarily waive the management fee, subject
  to its right to change or modify this waiver.

As Amended and Effective June 30, 2000.

                                       11<PAGE>

                                                               Exhibit 10.21

                         INVESTMENT MANAGEMENT AGREEMENT

AGREEMENT made this 1st day of July, 1990, by and between TMK/UNITED FUNDS, INC.
(hereinafter called "United", and WADDELL & REED, INC.

                                   WITNESSETH:

In consideration of the mutual promises and agreements herein contained and
other good and valuable consideration, the receipt of which is hereby
acknowledged, it is hereby agreed by and between the parties hereto as follows:

I.       IN GENERAL.
         Waddell & Reed, Inc., agrees to act as investment adviser to United
with respect to the investment of its assets and in general to supervise the
investments of United, subject at all times to the direction and control of the
Board of Directors of United, all as more fully set forth herein.

II.      DUTIES OF WADDELL & REED, INC., WITH RESPECT TO INVESTMENT OF ASSETS OF
UNITED.

         A.       Waddell & Reed Inc., shall regularly provide investment advice
to United and shall, subject to the succeeding provisions of this section,
continuously supervise the investment and reinvestment of cash, securities or
other property comprising the assets of the investment portfolios of United; and
in furtherance thereof, Waddell & Reed, Inc., shall:

                  1.       obtain and evaluate pertinent information about
significant developments and economic, statistical and financial data, domestic,
foreign or otherwise, whether affecting the economy generally or one or more of
the portfolios of United, and whether concerning the individual companies whose
securities are included in United's portfolios or the industries in which they
engage, or with respect to securities which Waddell & Reed, Inc., considers
desirable for inclusion in United's portfolios;

                  2.       furnish continuously an investment program for each
of the portfolios of United;

                  3.       determine what securities shall be purchased or sold
by United;

                  4.       take, on behalf of United, all actions which appear
to Waddell & Reed, Inc., necessary to carry into effect such investment programs
and supervisory functions as aforesaid, including the placing of purchase and
sale orders.

         B.       Waddell & Reed, Inc., shall make appropriate and regular
reports to the Board of Directors of United on the actions it takes pursuant to
Section II.A. above. Any investment programs furnished by Waddell & Reed, Inc.,
under this section, or any supervisory function taken hereunder by Waddell &
Reed, Inc., shall at all times conform to and be in accordance with any
requirements imposed by:

<PAGE>

                  1.       the provisions of the Investment Company Act of 1940
and any rules or regulations in force thereunder;

                  2.       any other applicable provision of law;

                  3.       the provisions of the Articles of Incorporation of
United as amended from time to time;

                  4.       the provisions of the Bylaws of United as amended
from time to time;

                  5.       the terms of the registration statements of United,
as amended from time to time, under the Securities Act of 1933 and the
Investment Company Act of 1940.

         C.       Any investment programs furnished by Waddell & Reed, Inc.,
under this section or any supervisory functions taken hereunder by Waddell &
Reed, Inc., shall at all times be subject to any directions of the Board of
Directors of United, its Executive Committee, or any committee or officer of
United acting pursuant to authority given by the Board of Directors.

III.     ALLOCATION OF EXPENSES.
         The expenses of United and the expenses of Waddell & Reed, Inc., in
performing its functions under this Agreement shall be divided into two classes,
to wit: (i) those expenses which will be paid in full by Waddell & Reed, Inc.,
as set forth in subparagraph "A" hereof, and (ii) those expenses which will be
paid in full by United, as set forth in subparagraph "B" hereof.

                  A.       With respect to the duties of Waddell & Reed, Inc.,
under Section II above, it shall pay in full, except as to the brokerage and
research services acquired through the allocation of commissions as provided in
Section IV hereinafter, for (a) the salaries and employment benefits of all
employees of Waddell & Reed, Inc. who are engaged in providing these advisory
services; (b) adequate office space and suitable office equipment for such
employees; and (c) all telephone and communications costs relating to such
functions. In addition, Waddell & Reed, Inc., shall pay the fees and expenses of
all directors of United who are employees of Waddell & Reed, Inc., or an
affiliated corporation and the salaries and employment benefits of all officers
of United who are affiliated persons of Waddell & Reed, Inc.

                  B.       United shall pay in full for all of its expenses
which are not listed above (other than those assumed by Waddell & Reed, Inc., or
its affiliates in its capacity as Accounting Services Agent for United),
including (a) the costs of preparing and printing prospectuses and reports to
shareholders of United including mailing costs; (b) the costs of printing all
proxy statements and all other costs and expenses of meetings of shareholders of
United; (c) interest, taxes, brokerage commission and premiums on fidelity and
other insurance; (d) audit fees and expenses of independent accountants and
legal fees and expenses of attorneys, but not of attorneys who are employees of
Waddell & Reed, Inc.; (e) fees and expenses of its directors; (f) custodian fees
and expenses; (g) fees payable by United under the Securities Act of 1933, the
Investment Company Act of 1940, and the securities or "Blue-Sky" laws of any
jurisdiction; (h) fees and assessments of the Investment Company Institute or
any

<PAGE>

successor organization; (i) such nonrecurring or extraordinary expenses as may
arise, including litigation affecting United and any indemnification by United
of its officers, directors, employees and agents with respect thereto; (j) the
costs and expenses of maintaining shareholder records and processing
transactions for the issuance and redemption of its shares; and (k) the costs
and expenses provided for in any Accounting Services Agreement, including
amendments thereto, contemplated by subsection C of this section III.

                  C.       Waddell & Reed, Inc., or an affiliate of Waddell &
Reed, Inc., may also act as accounting services agent of United if at the time
in question there is a separate agreement, "Accounting Services Agreement,"
covering such functions between United and Waddell & Reed, Inc., or such
affiliate. The corporation, whether Waddell & Reed, Inc., or its affiliate,
which is the party to such Agreement with United is referred to as the "Agent."
Any such Agreement shall provide in substance that it shall not go into effect,
or may be amended, or a new agreement covering the same topics between United
and the Agent may be entered into only if the terms of such Agreement, such
amendment or such new agreement have been approved by the Board of Directors of
United, including the vote of a majority of the directors who are not
"interested persons" as defined in the Investment Company Act of 1940, of either
party to the Agreement, such amendment or such new agreement (considering
Waddell & Reed, Inc., to be such a party even if at the time in question the
Agent is an affiliate of Waddell & Reed, Inc.), cast in person at a meeting
called for the purpose of voting on such approval. Such a vote is referrer to as
a "disinterested director" vote. Any such Agreement shall also provide in
substance for its continuance, unless terminated, for a specified period which
shall not exceed two years from the date of its execution and from year to year
thereafter only if such continuance is specifically approved at least annually
by a disinterested director vote, and that any disinterested director vote shall
include a determination that (i) the Agreement, amendment, new agreement or
continuance in question is in the best interests of United and its shareholders;
(ii) the services to be performed under the Agreement, the Agreement as amended,
new agreement or agreement to be continued are services required for the
operation of United; (iii) the Agent can provide services the nature and quality
of which are at least equal to those provided by others offering the same or
similar services; and (iv) the fees for such services are fair and reasonable in
light of the usual and customary charges made by others for services of the same
nature and quality. Any such Agreement may also provide in substance that any
disinterested director vote may be conditioned on the favorable vote of the
holders of a majority (as defined in or under the Investment Company Act of
1940) of the outstanding shares of each class of United. Any such Agreement
shall also provide in substance that it may be terminated by the Agent at any
time without penalty upon giving United one hundred twenty (120) days' written
notice (which notice may be waived by United) and may be terminated by United at
any time without penalty upon giving the Agent sixty (60) days' written notice
(which notice may be waived by the Agent), provided that such termination by
United shall be directed or approved by the vote of a majority of the Board of
Directors of United in office at the time or by the vote of the holders of a
majority (as defined in or under the Investment Company Act of 1940) of the
outstanding shares of each class of United.

IV.      BROKERAGE.
         (a)      Waddell & Reed, Inc., may select brokers to effect the
portfolio transactions of United on the basis of its estimate of their ability
to obtain, for reasonable and competitive commissions, the best execution of
particular and related portfolio transactions. For this

<PAGE>

purpose, "best execution" means prompt and reliable execution at the most
favorable price obtainable. Such brokers may be selected on the basis of all
relevant factors including the execution capabilities required by the
transaction or transactions, the importance of speed, efficiency, or
confidentiality, and the willingness of the broker to provide useful or
desirable investment research and/or special execution services. Waddell & Reed,
Inc., shall have no duty to seek advance competitive commission bids and may
select brokers based solely on its current knowledge of prevailing commission
rates.

         (b)      Subject to the foregoing, Waddell & Reed, Inc., shall have
discretion, in the interest of United, to direct the execution of its portfolio
transactions to brokers who provide brokerage and/or research services (as such
services are defined in Section 28(e) of the Securities Exchange Act of 1934)
for United and/or other accounts for which Waddell & Reed, Inc., and its
affiliates exercise "investment discretion" (as that term is defined in Section
3(a)(35) of the Securities Act of 1934); and in connection with such
transactions, to pay commission in excess of the amount another adequately
qualified broker would have charged if Waddell & Reed, Inc., determines, in good
faith, that such commission is reasonable in relation to the value of the
brokerage and/or research services provided by such broker, viewed in terms of
either that particular transaction or the overall responsibilities of Waddell &
Reed, Inc., and its investment advisory affiliates with respect to the accounts
for which they exercise investment discretion. In reaching such determination,
Waddell & Reed, Inc., will not be required to attempt to place a specified
dollar amount on the brokerage and/or research services provided by such broker;
provided that Waddell & Reed, Inc., shall be prepared to demonstrate that such
determinations were made in good faith, and that all commissions paid by United
over a representative period selected by its Board of Directors were reasonable
in relation to the benefits to United.

         (c)      Subject to the foregoing provisions of this Paragraph "IV,"
Waddell & Reed, Inc., may also consider sales of insurance policies funded by
United's shares and sales of shares of investment companies distributed by
Waddell & Reed, Inc., or its affiliates, and portfolio valuation or pricing
services as a factor in the selection of brokers to execute brokerage and
principal portfolio transactions.

V.       COMPENSATION OF WADDELL & REED, INC.
         As compensation in full for services rendered and for the facilities
and personnel furnished under sections I, II, and IV of this Agreement, United
will pay to Waddell & Reed, Inc., for each day the fees specified in Exhibit A
hereto.

         The amounts payable to Waddell & Reed, Inc., shall be determined as of
the close of business each day; shall, except as set forth below, be based upon
the value of net assets computed in accordance with the Articles of
Incorporation of United; and shall be paid in arrears whenever requested by
Waddell & Reed, Inc.

         Notwithstanding the foregoing, if the laws, regulations or policies of
any state in which shares of United are qualified for sale limit the operation
and management expenses of United, Waddell & Reed, Inc., will refund to United
the amount by which such expenses exceed the lowest of such state limitations.

VI.      UNDERTAKINGS OF WADDELL & REED, INC.; LIABILITIES.

<PAGE>

         Waddell & Reed, Inc., shall give to United the benefit of its best
judgment, efforts and facilities in rendering advisory services hereunder.

         Waddell & Reed, Inc., shall at all times be guided by and be subject to
United's investment policies, the provisions of its Articles of Incorporation
and Bylaws as each shall from time to time be amended, and to the decision and
determination of United's Board of Directors.

         This Agreement shall be performed in accordance with the requirements
of the Investment Company Act of 1940, the Investment Advisors Act of 1940, the
Securities Act of 1933, and the Securities Exchange Act of 1934, to the extent
that the subject matter of this Agreement is within the purview of such Acts.
Insofar as applicable to Waddell & Reed, Inc., as an investment adviser and
affiliated person of United, Waddell & Reed, Inc., shall comply with the
provisions of the Investment Company Act of 1940, the Investment Advisers Act of
1940 and the respective rules and regulations of the Securities and Exchange
Commission thereunder.

         In the absence of willful misfeasance, bad faith, gross negligence or
reckless disregard of obligations or duties hereunder on the part of Waddell &
Reed, Inc., it shall not be subject to liability to United or to any stockholder
of United (direct of beneficial) for any act or omission in the course of or
connected with rendering services thereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.

VII.     DURATION OF THIS AGREEMENT.

         This Agreement shall become effective at the start of business on the
date hereof and shall continue in effect, unless terminated as hereinafter
provided, for a period of one year and from year-to-year thereafter only if such
continuance is specifically approved at least annually by the Board of
Directors, including the vote of a majority of the directors who are not parties
to this Agreement or "interested persons" (as defined in the Investment Company
Act of 1940) of any such party, cast in person at a meeting called for the
purpose of voting on such approval, or by the vote of the holders of a majority
(as so defined) of the outstanding voting securities of each class of United and
by the vote of a majority of the directors who are not parties to this Agreement
or "interested persons" (as so defined) of any such party, cast in person at a
meeting called for the purpose of voting on such approval.

VIII.    TERMINATION.

         This Agreement may be terminated by Waddell & Reed, Inc., at any time
without penalty upon giving United one hundred twenty (120) days' written notice
(which notice may be waived by United) and may be terminated by United at any
time without penalty upon giving Waddell & Reed, Inc. sixty (60) days' written
notice (which notice may be waived by Waddell & Reed, Inc.), provided that such
termination by United shall be directed or approved by the vote of a majority of
the Board of Directors of United in office at the time or by the vote of a
majority (as defined in the Investment Company Act of 1940) of the outstanding
voting securities of United. This Agreement shall automatically terminate in the
event of its

<PAGE>

assignment, the term "assignment" for this purpose having the meaning defined in
Section 2(a)(4) of the Investment Company Act of 1940 and the rules and
regulations thereunder.

IN WITNESS WHEREROF, the parties hereto have caused the foregoing instrument to
be executed by their duly authorized officers and their corporate seal to be
hereunto affixed, all as of the day and year first above written.

(Seal)                                 TMK/UNITED FUNDS, INC.

                                           By:  /s/Rodney O. McWhinney
                                                ----------------------
                                                    Rodney O. McWhinney
                                                    Vice President

ATTEST:

/s/Sharon K. Pappas
-------------------
Sharon K. Pappas
Secretary

(Seal)                                 WADDELL & REED, INC.

                                           By:  /s/Robert L. Hechler
                                                --------------------
                                                    Robert L. Hechler
                                                    Executive Vice President

ATTEST:

/s/Rodney O. McWhinney
----------------------
Rodney O. McWhinney
Secretary

<PAGE>

                  EXHIBIT A TO INVESTMENT MANAGEMENT AGREEMENT

                            TARGET/UNITED FUNDS, INC.

                                  FEE SCHEDULE

A cash fee computed each day on net asset value for each Portfolio at the annual
rates listed below*:

ASSET STRATEGY PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>

Up to $1 billion                                      0.70%

Over $1 billion and up to $2 billion                  0.65%

Over $2 billion and up to $3 billion                  0.60%

Over $3 billion                                       0.55%
</TABLE>

BALANCED PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>

Up to $1 billion                                      0.70%

Over $1 billion and up to $2 billion                  0.65%

Over $2 billion and up to $3 billion                  0.60%

Over $3 billion                                       0.55%
</TABLE>

BOND PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>

Up to $500 million                                    0.525%

Over $500 million and up to $1 billion                0.50%

Over $1 billion and up to $1.5 billion                0.45%

Over $1.5 billion                                     0.40%
</TABLE>
<PAGE>

CORE EQUITY PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>

Up to $1 billion                                      0.70%

Over $1 billion and up to $2 billion                  0.65%

Over $2 billion and up to $3 billion                  0.60%

Over $3 billion                                       0.55%
</TABLE>

GROWTH PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>
Up to $1 billion                                      0.70%

Over $1 billion and up to $2 billion                  0.65%

Over $2 billion and up to $3 billion                  0.60%

Over $3 billion                                       0.55%
</TABLE>

HIGH INCOME PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>
Up to $500 million                                    0.625%

Over $500 million and up to $1 billion                0.60%

Over $1 billion and up to $1.5 billion                0.55%

Over $1.5 billion                                     0.50%
</TABLE>

INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>
Up to $1 billion                                      0.85%

Over $1 billion and up to $2 billion                  0.83%

Over $2 billion and up to $3 billion                  0.80%

<PAGE>

Over $3 billion                                       0.76%
</TABLE>

LIMITED-TERM BOND PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>
Up to $500 million                                    0.50%

Over $500 million and up to $1 billion                0.45%

Over $1 billion and up to $1.5 billion                0.40%

Over $1.5 billion                                     0.35%
</TABLE>

MONEY MARKET PORTFOLIO

A cash fee computed each day on net asset values for the Portfolio at the annual
rate of 0.40% of net assets.

SCIENCE & TECHNOLOGY PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>
Up to $1 billion                                      0.85%

Over $1 billion and up to $2 billion                  0.83%

Over $2 billion and up to $3 billion                  0.80%

Over $3 billion                                       0.76%
</TABLE>

SMALL CAP PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>
Up to $1 billion                                      0.85%

Over $1 billion and up to $2 billion                  0.83%

Over $2 billion and up to $3 billion                  0.80%

Over $3 billion                                       0.76%
</TABLE>

<PAGE>

VALUE PORTFOLIO
<TABLE>
<CAPTION>

Net Assets                                            Fee
----------                                            ---
<S>                                                   <C>
Up to $1 billion                                      0.70%

Over $1 billion and up to $2 billion                  0.65%

Over $2 billion and up to $3 billion                  0.60%

Over $3 billion                                       0.55%
</TABLE>

*If a Portfolio's net assets are less than $25 million, Waddell & Reed
  Investment Management Company has agreed to voluntarily waive the management
  fee, subject to its right to change or modify this waiver.

As Amended and Effective February 14, 2001.

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