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                                                               Exhibit 10.28

                          DISTRIBUTION AND SERVICE PLAN
                               FOR CLASS C SHARES

                         (Adopted on February 10, 1999)

This Plan is adopted by ____________________ (the "Fund"), pursuant to Rule
12b-1 under the Investment Company Act of 1940, as amended (the "Act") to
provide for payment by the Fund of certain expenses in connection with the
distribution of the Fund's Class C shares, provision of personal services to the
Fund's Class C shareholders and/or maintenance of its Class C shareholder
accounts. Payments under the Plan are to be made to Waddell & Reed, Inc. ("W&R")
which serves as the principal underwriter for the Fund under the terms of the
Underwriting Agreement pursuant to which W&R offers and sells the shares of the
Fund.

DISTRIBUTION FEE
The Fund is authorized to pay to W&R an amount not to exceed on an annual basis
 .75 of 1% of the Fund's average net assets of its Class C shares as a
"distribution fee" to finance the distribution of the Fund's Class C shares
payable to W&R daily or at such other intervals as the board of directors may
determine.

SERVICE FEE
The Fund is authorized to pay to W&R an amount not to exceed on an annual basis
 .25 of 1% of the Fund's average net assets of its Class C shares as a "service
fee" to finance shareholder servicing by W&R or its affiliated companies to
encourage and foster the maintenance of shareholder accounts of the Fund's Class
C shares. The amounts shall be payable to W&R daily or at such other intervals
as the board of directors may determine.

NASD DEFINITION
For purposes of this Plan, the "distribution fee" may be considered as a sales
charge that is deducted from the Class C net assets of the Fund and does not
include the service fee. The "service fee" shall be considered a payment made by
the Fund for personal service and/or maintenance of Class C shareholder
accounts, as such is now defined by the National Association of Securities
Dealers, Inc. ("NASD"), provided, however, if the NASD adopts a definition of
"service fee" for purposes of Rule 2830 of the NASD Conduct Rules that differs
from the definition of "service fee" as presently used, or if the NASD adopts a
related definition intended to define the same concept, the definition of
"service fee" as used herein shall be automatically amended to conform to the
NASD definition.

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QUARTERLY REPORTS
W&R shall provide to the board of directors of the Fund and the board of
directors shall review at least quarterly a written report of the amounts so
expended of the distribution fee and/or service fee paid or payable to it under
this Plan and the purposes for which such expenditures were made.

APPROVAL OF PLAN
This Plan shall become effective when it has been approved by a vote of the
board of directors of the Fund and of the directors who are not interested
persons of the Fund and have no direct or indirect financial interest in the
operation of the Plan or any agreement related to this Plan (other than as
directors or shareholders of the Fund) ("independent directors") cast in person
at a meeting called for the purposes of voting on such Plan.

CONTINUANCE
This Plan shall continue in effect for a period of one (1) year and thereafter
from year to year only so long as such continuance is approved by the directors,
including the independent directors, as specified hereinabove for the adoption
of the Plan by the directors and independent directors.

DIRECTOR CONTINUATION
In considering whether to adopt, continue or implement this Plan, the directors
shall have a duty to request and evaluate, and W&R shall have a duty to furnish,
such information as may be reasonably necessary to an informed determination of
whether this Plan should be adopted, implemented or continued.

TERMINATION
This Plan may be terminated at any time by a vote of a majority of the
independent directors of the Fund or by a vote of the majority of the
outstanding Class C voting securities of the Fund without penalty. On
termination, the payment of all distribution fees and service fees shall cease,
and the Fund shall have no obligation to W&R to reimburse it for any cost or
expenditure it has made or may make to distribute the Class C shares or service
Class C shareholder accounts.

AMENDMENTS
This Plan may not be amended to increase materially the amount to be spent for
distribution of Class C shares, personal service and/or maintenance of
shareholder accounts without approval of the Class C shareholders, and all
material amendments of this Plan must be approved in the manner prescribed for
the adoption of the Plan as provided hereinabove. The distribution and service
fees may be

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reduced by action of the board of directors without shareholder approval.

DIRECTORS
While this Plan is in effect, the selection and nomination of the directors who
are not interested persons of the Fund shall be committed to the discretion of
the directors who are not interested persons of the Fund.

RECORDS
Copies of this Plan, the Underwriting Agreement and reports made pursuant to
this Plan shall be preserved as provided in Rule 12b-1(f) under the Act.

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                                                               Exhibit 10.29

                           WADDELL & REED FUNDS, INC.
                          DISTRIBUTION AND SERVICE PLAN
                               FOR CLASS Y SHARES
                         (Adopted on December 27, 1995)

This Plan is adopted by Waddell & Reed Funds, Inc. (the "Company") pursuant to
Rule 12b-1 under the Investment Company Act of 1940, as amended (the "Act") to
provide for payment by the Company of certain expenses in connection with the
distribution of the Company's Class Y shares and the service and maintenance of
Class Y shareholder accounts. Payments under the Plan are to be made to Waddell
& Reed, Inc. ("W&R") which serves as the principal underwriter for the Company
under the terms of an under writing agreement pursuant to which it shall offer
and sell the Class Y shares of each series (each a "Fund") of the Company at net
asset value.

DISTRIBUTION FEE

With respect to each Fund, subject to the limitation on total plan fees set
forth below, the Company is authorized to pay to W&R an amount not to exceed on
an annual basis .25 of 1% of each Fund's average net assets of its Class Y
shares as a "distribution fee" to finance the distribution of that Fund's Class
Y shares payable to W&R daily or at such other intervals as the board of
directors may determine.

SERVICE FEE

With respect to each Fund, subject to the limitation on total plan fees set
forth below, the Company is authorized to pay to W&R an amount not to exceed on
an annual basis .25 of 1% of each Fund's average net assets of its Class Y
shares as a "service fee" to finance shareholder servicing by W&R or its
affiliated companies to encourage and foster the maintenance of shareholder
accounts of the particular Fund's Class Y shares. The amounts shall be payable
to W&R daily or at such other intervals as the board of directors may determine.

LIMITATION ON TOTAL PLAN FEES

With respect to each Fund, the Company is authorized to pay both a distribution
fee and a service fee to W&R provided

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that the total amount of fees paid to W&R pursuant to this Plan shall not exceed
on an annual basis .25 of 1% of the average net assets of that Fund's Class Y
shares.

NASD DEFINITION

For purposes of this Plan, the distribution fee may be considered as a sales
charge that is deducted from the net assets of the Class Y shares of each Fund
and does not include the service fee. The service fee may be considered a
payment made by the Company with respect to each Fund for personal service
and/or maintenance of Class Y shareholder accounts, provided, however, that if
the National Association of Securities Dealers, Inc. ("NASD") adopts a
definition of "service fee" for purposes of Article III, Section 26(b) of its
Rules of Fair Practice that differs from the definition of "service fee" as used
herein, or if the NASD adopts a related definition intended to define the same
concept, the definition of "service fee" as used herein shall be automatically
amended to conform to the NASD definition.

QUARTERLY REPORTS

W&R shall provide to the board of directors of the Company and the board of
directors shall review at least quarterly a written report of the amounts so
expended of the distribution fee and the service fee paid to it under this Plan
with respect to the Class Y shares of each Fund and the purposes for which such
expenditures were made with respect to the Class Y shares of each Fund.

APPROVAL OF PLAN

This Plan shall not become effective as to a Fund until it has been approved by
a vote of at least a majority of the outstanding Class Y shares of that Fund (as
defined in the Act) and by a vote of the board of directors of the Company and
by the directors who are not interested persons of the Company and have no
direct or indirect financial interest in the operation of the Plan or any
agreement related to this Plan (other than as directors or shareholders of the
Company) ("independent directors") cast in person at a meeting called for the
purpose of voting on such Plan.

CONTINUANCE

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This Plan shall continue in effect as to each Fund for a period of one (1) year
and thereafter from year-to-year only so long as such continuance is approved by
the directors, including the independent directors, as specified hereinabove for
the adoption of a Plan by the directors and independent directors.

TERMINATION

This Plan may be terminated at any time by a vote of a majority of the
independent directors as to any Fund or by a vote of the majority of the
outstanding Class Y shares of that Fund without penalty. On termination, the
payment of all distribution and service fees shall cease, and the Company shall
have no obligation to W&R to reimburse it for any expenditure it has made or may
make to distribute Fund Class Y shares or service Class Y shareholder accounts.

AMENDMENTS

This Plan may not be amended to increase materially the amount to be spent for
distribution or services without approval by the Class Y shareholders of the
affected Fund, and all material amendments of this Plan must be approved in the
manner prescribed for the adoption of the Plan as provided hereinabove. The
distribution and service fees may, however, be reduced by action of the board of
directors without shareholder approval.

DIRECTORS

While this Plan is in effect, the selection and nomination of the directors who
are not interested persons of the Company shall be committed to the discretion
of the directors who are not interested persons of the Company.

RECORDS

Copies of the Plan, agreements and reports made pursuant to this Plan shall be
preserved as provided in Rule 12b-1(f) under the Act.

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