Exhibit - 10 ii Reimbursement Agreements The Valley Forge Fund reimburses officers and directors not affiliated with the Investment Adviser to compensate for travel expenses associated with performance of their duties. A total of $2,455 was paid in...

                                Exhibit - 10 ii



                           Reimbursement Agreements


The Valley Forge Fund reimburses officers and directors not affiliated  with the
Investment Adviser to compensate for travel expenses associated with performance
of their  duties.  A total of $2,455 was  paid in this  regard  in 2001.  As the
Fund  grows in total assets, the  Board of Directors may authorize salaries com-
mensurate with their duties.

The Fund does not now, and has no  plans to  compensate  officers, employes  and
directors  who  are affiliated  with the  Investment Adviser  except  indirectly
through payment of the management  fee.