Exhibit - 10 ii
Reimbursement Agreements
The X'Xxxxxxx 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 $3,168 was paid in this regard in 1998. The Valley
Forge Management Corp. reimbursed the Fund for this entire amount as the expense
was incurred. As the Fund grows in total assets, the Board of Directors may
place them on salaries commensurate 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.
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